Development, incentives could suffer in session - South Florida Business Journal:

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billion hole in the state’s $66 billionb budget. So far, the budget patches proposed by Gov. Charlir Crist and Republican legislative leaders rely chiefly on spendinvg cuts and draining Tax hikes and fee increase lookunlikely — but only for now. “This is goinv to be like two weeks of Randy Miller, a VP with the , said of the special session scheduled for Jan. 5-16. “But come the regular sessionh in March, we know that’s when we’ll be in the majoe leagues and a lot is goinbg to be thrownat us.” Also off the tabl for the short-term appears to be Crist’sz push for lawmakers to approve a gamblinfg agreement with the .
The governor estimatees that deal coulddraw $135 million in new money for the But Senate President Jeff Atwater, R-Nortyh Palm Beach, and House Speaker Ray Sansom, R-Destin, rule out trying to approve a hurry-up compact in special likely forcing deeper budget cuts. Busines s incentives dashed? Losing those new dollars also appears to have helpedx derail a handful of business incentives that Crist and lawmakersa had considered financing to softenm the blow of yet another round of budget A small-business loan program aimed at easingf the credit crunch for some firmsx and expanded tax credits for companies that creatr Florida jobs are initiatives that instead will have to wait untip spring, said Crist spokesman Sterling “Timing-wise, you can only do so much in a special Ivey said.
“But we’re looking at new ideas for the next fiscal year that will help the economtyget going.” With Florida leading the nation in job lossexs and second in mortgage foreclosures, the state’sa economy is expected to be down through the firsty quarter of 2010 with even sharpee cuts planned for next year’ budget. Lawmakers from both parties say that to ease what couldr beanother $5 billion in spendinvg reductions, the Legislature next spring must revisit the billions of dollarsa in sales-tax exemptions now applied to dozens of goode and services — shielding interests ranging from accountants to ostricy farmers and charter boat fishiny captains.
Although it looks unlikely to emerge from theJanuaryg session, lawmakers also talk about increasing the state’s cigarettee tax by between $1 to $1.34 a pack to pull $700 millionh a year into the state treasury. House Democratic Leaderr Franklin Sands of Weston is calling on rulin g Republicans to hold public hearings during the January sessiobn to allow talk oftax boosts, sayinh there’s a need for “open talks with all options on the The stunning decline in tax receiptsz has seen Florida’s budget shrink from a brimming $72 billion in May 2007 to what is likelhy to be a battered $64 billion spendinb plan when the special session Health care and schools absorb most of the state’s genera revenue.
But spending reductions will be widespread. “There’z talk of cutting $30 million from the state’x affordable housing program that goes to downpaymentg assistance,” said David Hart, a VP with the . “That kind of cut woulsd really hurt because with interest ratesso low, a lot of peoplew may just need a little help to take advantaged of this buyers’ market.” Sen. Mike Haridopolos, R-Merritt a member of the Senate’s budger committee, acknowledged that whils cutting, lawmakers are intent on not further settingb backthe state’s faltering economy. “Wr have to consider what programs really are our best return on our Haridopolos said.