May 8, 2024

In Turnaround, Governor Wants to Spend in Florida

As his budget centerpiece, the governor proposed raising teacher salaries across the board by $2,500 a year and dedicating $1.2 billion more to public schools. The increase would give Florida schools the largest budget ever, the governor said. Mr. Scott said his other priority was to spur manufacturing jobs by eliminating a sales tax on equipment.

Underscoring his transformation from Tea Party booster to political realist, Mr. Scott, a Republican, also proposed budget increases for the environment and the state’s university system.

This is the second straight year that Mr. Scott, who campaigned in 2010 on a pledge to shrink government, has proposed an increase in public school spending, a noticeable turnaround from his first year in office, when he sought a 10 percent cut in school financing. Schools in Florida have been reeling from years of cuts, with budgets still below those of six years ago.

Teachers, who must now contribute to their pensions and have seen their paychecks dwindle, have disapproved loudly and vehemently.

“This is a historic investment in K-12,” the governor said in his upbeat budget presentation, where he stood with a crowd of educators behind him. “It’s the right thing to do for our children.”

School board officials and superintendents praised the governor’s announcement, with the superintendent of Hillsborough County public schools, MaryEllen Elia, saying she was “encouraged” by the “laser focus” on education.

But state Democratic leaders said it smacked of “pre-election-year gimmicks,” as Senator Chris Smith, the Democratic leader, put it. Mr. Smith added that Florida teachers and schools were still being shortchanged.

“No number of teachers gathered as props in a news conference can change those facts,” he said.

The governor’s budget now heads to the Republican-dominated Legislature, which is considerably less enthusiastic about the large spending increases and raises.

“Right now, our budget shows that we don’t have $1.2 billion in surplus,” Will Weatherford, a Republican and the state’s new House speaker, said on Wednesday. “So certainly, to get to that number, you would have to make some cuts somewhere else. But we’re going to take his budget seriously, and we’re going to look at it critically.”

For the first time since taking office in 2011, Mr. Scott delivered undisputable good news to a state that suffered greatly in the recession. He announced a modest budget surplus and a steady drop in unemployment. The jobless rate is now 8 percent, a four-year low.

Taking credit for Florida’s rebounding economy, Mr. Scott said the state was back in business.

“Florida’s economy is back on track, and the nation is taking notice of our economic turnaround,” he said.

He also reached out to public employees, who have been critical of his tenure. Under Mr. Scott, nearly 2,000 state workers have lost their jobs. His budget would include at least $1,200 in a lump-sum bonus for most state workers, which could rise to as much as $5,000 depending on job performance. It was welcome news for some but not others.

The Florida Police Benevolent Association said that its members would prefer to see raises rather than a one-time bonus and that it would lobby the Legislature to pursue that option.

“We believe salary increases are long overdue,” Matt Puckett, the association’s executive director, said in a statement. “Some officers have gone six years without a wage increase due to state budget constraints.”

The governor also proposed making up the $300 million that was cut from universities last year and increasing spending for land conservation and restoration of the Everglades.

Although the governor is trying to reverse years of school budget cuts, the proposed $1.2 billion increase would not go entirely to the classroom. Nearly $420 million would go toward teacher pensions and new enrollments.

The budget did not address Florida’s quandary over Medicaid and whether to extend Medicaid coverage under the Affordable Care Act.

“Today is not the day for that decision,” Mr. Scott said.

Article source: http://www.nytimes.com/2013/02/01/us/in-turnaround-governor-wants-to-spend-in-florida.html?partner=rss&emc=rss

Today’s Economist: Casey B. Mulligan: A Budget for Regulation

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Casey B. Mulligan is an economics professor at the University of Chicago. He is the author of “The Redistribution Recession: How Labor Market Distortions Contracted the Economy.”

As Democrats and Republicans haggle over federal taxes and spending, another important policy tool gets less attention: regulation.

Today’s Economist

Perspectives from expert contributors.

Government has a variety of ways it can achieve its objectives, including subsidies, taxes and regulation. For example, the government might attempt to help disabled people by subsidizing handicapped-accessible buildings. Or it could levy an extra tax on buildings that are not handicapped-accessible. Or it could simply refuse to permit structures to be built, or used in various situations, without being handicapped-accessible.

All three strategies are likely to affect building activity, increase the prevalence of handicapped-accessible buildings and in so doing help people with disabilities, as intended. The first strategy is ordinarily called government spending; the second, taxation; and the third, regulation.

Private-sector activities to comply with regulation do not appear in the government budget, whereas private-sector interactions with tax and spending programs do, in terms of the amount of money they pay or receive. (Regulation does need a government budget for enforcement, but so do taxes and spending, and enforcement is distinct from the private sector’s compliance activities.)

Politicians have devised various budgetary gimmicks to help disguise what they tax and spend, and the sunset provision that led to next month’s fiscal cliff is one of them. Nevertheless, experts and even the voting public get an idea of the importance of taxes and spending in the economy by looking at budget totals and perhaps a few of the largest line items.

The same cannot be said for regulation, which lacks any official budget. Attempts have been made to quantify regulation by the number of pages of law or pages of agency rules: President Ronald Reagan once bragged that his administration reduced one area of regulation to 31 pages from 905.

However, pages can be misleading, because some words, sentences and paragraphs have more impact than others. For example, some laws, like those requiring children to attend school, have little impact because a vast majority of American families would send their children to school even if the law did not require it. Other laws, like many curfews, take up space on the books but are not enforced.

Because regulations have so far been poorly quantified, it is interesting to see a recent study of workplace regulation by complianceandsafety.com. It attempts to measure the aggregate of importance of workplace regulation by the dollar amount of fines collected by the Occupational Safety and Health Administration. Its chart, reproduced below, looks at the fines in reverse chronological order, and colors years according to the political party of the president in power.

complianceandsafety.com

OSHA fines have increased sharply since 2009. Perhaps more surprising is that the largest fine increases previously were under a Republican president (the first President George Bush) and the largest reductions were under President Bill Clinton.

As with taxes and spending, we cannot necessarily conclude that more regulation is “bad” or “good,” but it would be helpful for experts and voters alike to see a rigorous accounting for government regulation.

Article source: http://economix.blogs.nytimes.com/2012/12/26/a-budget-for-regulation/?partner=rss&emc=rss