As you know, the Florida Legislature concluded a successful special session yesterday (Dec. 6, 2001) with the passage of a revised budget.  Since it is likely  that the opposition will not relent in their efforts to spread misinformation about the budget, we wanted to arm you with the facts.

Thank you again for all that you do.  Please log on to: www.jeb.org for campaign updates and information.
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Budget Fact Sheet

· Even with wartime necessitated budget reductions, the state budget is still 20% greater than in 1998, with spending increases focused on our state's priorities - education, health and human services, public safety and the environment.

· 2000-2001 Budget = $45.4 billion
  2001-2002 Budget = $48.4 billion

Total Increase = $3 billion

· Budget revisions include:

Spending reductions - $722 million (53%)
Cash from working capitol - $104 million (8%)
Trust fund reserves - $383 million (29%)
Intangibles tax cut delay - $128 million (10%)

Total = $1.34 billion

· Current budget reserves = $2.862 billion (compared to $1.328 billion in 1998)  The previous Democrat Administration left the state with a mere $1.3 billion in reserves. Under Governor Bush's leadership, the reserves have been built to a record $2.9 billion - an increase of 115 percent.

· Anticipating harder times, the Governor vetoed $916 million in special projects over the last three years to minimize Florida's spending obligations.

· Democrats in the Florida Legislature voted in favor of the last three budgets by 98% (1999), 100% (2000), and 89% (2001) - the same budgets they are now criticizing.

· Over 90% of Democrats in the Florida Legislature voted in favor of the Intangibles Tax Cut in 1998, 1999, and 2000.

· Contrary to Democrat proposals, taxes will not be increased, especially not during a recession.

· While the intangibles tax cut has been deferred for 18 months, Governor Bush is steadfastly committed to ultimately eliminating this insidious tax.

· 44 states are experiencing revenue shortfalls.  Other state's situations:

Alabama - Considering tax increases

Alaska - up to $750 million shortfall

Arizona - $1.6 billion shortfall (12%)

Arkansas - $142 million shortfall

California - $8-$14 billion shortfall (7.7-13.5%), initial education cuts proposed at $844 million, automatic $.025 sales tax increase has kicked in

Connecticut - Considering state layoffs

Florida - $1.34 billion shortfall (2.7%)

Kansas - $375 million shortfall, considering tax increases

Illinois - $485-$500 million shortfall ($53.4 billion budget), despite a recent $12 billion increase in license sticker fees, and increased taxes on beer, wine and hard liquor

Indiana - $450-$600 million shortfall (cutting budget by 7%), considering sales, income, cigarette and casino tax increases and eliminating tax breaks for businesses and homeowners

Kentucky - Revenue forecasts are down by 7.5%

Louisiana - Considering eliminating decade-long 4 cent sales tax holidayon food and utilities

Massachusetts - $1.1 billion shortfall (5-10% budget reduction)

Michigan - $500-$800 million shortfall (10% cuts)

Minnesota - $600 million-$1 billion shortfall (agencies preparing for 5-10% cuts)

Missouri - $150-$200 million shortfall ($19 billion budget)

North Carolina - New budget raises income and sales taxes by $620 million

Ohio - $1.5 billion shortfall, considering $465 million in business tax increases

Oregon - $720 million shortfall (6%)

Tennessee - Considering tax increases

Vermont - $8.5-$10 million in cuts to a $907 million budget

Virginia - $1-$1.2 billion shortfall

Washington - Up to a $900 million shortfall, considering tax increases

Wisconsin - Froze hiring

Wyoming - Considering tax increases

· Eight states - Arizona, Indiana, Maine, Nevada, New Hampshire, New Jersey, North Carolina, and West Virginia - raised taxes and fees by at least one percent as they enacted their fiscal year 2002 budgets.