$600 Million Surplus for Florida

[TheCat]

Gov. Rick Scott and lawmakers will have more than $600 million in extra money as they craft budget proposals for next year, according to a draft report issued Tuesday by economic forecasters.

The projection included in the Long-Range Financial Outlook, which will be considered by a legislative committee next week, marks the first official estimate of the state's surplus after accounting for continuing expenses and other spending decisions lawmakers generally make each year.

For the 2016-2017 budget year that begins July 1, there will be an estimated $635.4 million left, after normal spending and $1 billion in reserves — meant to help cushion the state against unexpected expenses — are taken care of. However, about $426.8 million of that surplus would come from one-time money.

The surplus is expected to decline after the 2016-2017 budget year, with the state having $583.7 million the next year and $222.2 million the year after that, with all of the leftovers being one-time money. Part of that is due to the continuing cost of recent tax cuts supported by Scott and Republican lawmakers.
Because the state's economists issue new forecasts on a regular basis, it is likely that the numbers for outlying years will be adjusted up or down.

The numbers released Tuesday will provide a framework for Scott's budget request, expected before the end of the year. Lawmakers will return to Tallahassee in January for an earlier-than-usual annual session and will negotiate a final spending plan.
Senate President Andy Gardiner, R-Orlando, said in a memo to senators that the new outlook "demonstrates the feasibility of increasing per student funding to the highest level in state history" — a goal of Scott's that lawmakers missed reaching last year. The State Board of Education has said it will make a similar request for the coming year.
Gardiner said he would ask the Senate's budget writers to aim for $250 million in tax cuts, in part because of the projections about outlying years....

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