TO: Bush-Brogan 2002 Team FROM: Karen Unger, Campaign Manager RE: The Senate's Latest Tax Proposal DATE: March 5, 2002

Last week, the Florida Senate's Appropriation Committee passed a tax increase totaling almost $1 billion. The tax, as currently proposed by the Senate, would be imposed on a wide range of services including computer programming, charter fishing boats, and consulting. The $1 billion tax proposal is expected to go to the floor for a full floor vote of the Senate later this week.

This Friday, the Revenue Estimating Conference will announce that Florida's incoming revenues are approximately $400 million greater than expected. Governor Bush is recommending that this surplus revenue be spent fully on education. This additional revenue, coupled with the Governor's $1.1 billion recommended education increase in January and the $2.9 billion in increased K-20 education spending provided by the Governor and Legislature over the last 3 years, will allow Florida to continue to fund education at record levels without raising taxes.

Governor Bush has been open in his opposition to increasing taxes, particularly at a time when Florida's economy and businesses are showing positive signs of recovery. State revenues are increasing, our unemployment rate is down, and Florida continues to be a national leader in job growth. Now is not the time to shut down economic growth by raising taxes.

With this in mind, we ask that you call the Senate Majority office at (850) 487- 5030 and the state senator from your district and urge him or her not to support this tax increase.

You can find contact information for your senator at: www.leg.state.fl.us/Legislators/index.cfm?Chamber=Senate&Submenu=1.