Spend, spend, spend

Comparatively, Florida lawmakers are loath to new taxes. But they’re not loath to spending. Florida needs guardrails.

MATT WALSH

It’s summer. It’s hot. Hopefully, you celebrated the Fourth of July patriotically. And now, as summer heats up, you just want your living to be easy.

To that end, likely among the remotest things on your mind now is how the Legislature and governor decided to spend your tax dollars during the 2023 session.

In fact, it’s probably also safe to say most Floridians don’t pay a hoot of attention to state spending unless it touches them directly. That’s why a week ago or so, there was a short burst of rancor after Gov. Ron DeSantis finally wielded his veto on $510 million worth of projects and programs around the state. Some of those vetoes stung at the local levels, including here.

But as always, after Florida governors sign the next fiscal year’s appropriations and veto what they consider wasteful, they tout how wonderful they are. In DeSantis’ case, his budget-signing release and veto letter proclaimed:

“I have signed monumental legislation that promises Floridians will enjoy fundamental freedoms for years to come.

“We have stayed the course and put the individual freedoms of Floridians at the forefront of every decision, resulting in low unemployment, record tourism and a thriving economy. Florida continues to lead the nation on all fronts, and we have laid the groundwork for generations of success. Through this year’s budget, we have cemented an economic framework which supports Florida’s families, business owners and students in the pursuit of a prosperous future.”

Of course, the devil is always in the details. Nonetheless, when you compare Florida to the rest of the nation, you have to admit and agree: All things considered — the economy, crime, taxation, environment, recreation, individual liberty, quality of life — Florida is the place to live when compared to other states. What’s more, the public policies adopted in Tallahassee indeed play a big part in that quality of life.

Sure, we have issues — housing affordability, insurance affordability and the fentaynal epidemic. But compared to, say, California and New York, this is indeed paradise. You can conclude a lot from these few numbers:

California n 2023-24 Budget: $310 billion n Population: 39.2 million n State government cost per person: $7,908

New York n 2023-24 Budget: $229 billion n Population: 19.8 million n State government cost per person: $11,566

Florida n 2023-24 Budget: $117 billion n Population: 22.2 million n State government cost per person: $5,270

Of course, there will be those who say Florida’s low per-person cost of state government is a negative indicator. They think more taxation is needed to solve every and all of Florida’s problems. And, they believe the governor and Legislature should be spending and taxing even more than it already is.

But the rejoinder to that is simple: Look at California and New York. What has all that government taxation done for those two states?

They have become two of the worst states in which to live and continue to deteriorate. That should be a constant concern of legislators: to avoid all the dumb things legislators and governors have done in the declining states as Florida’s population continues to grow.

Topping those dumb things is runaway taxation and spending.

You can credit Florida’s Republican-dominated legislators for being vigilant about new taxes. And even though the sales-tax holidays are a simple strategy for cutting taxes, controlling spending is more of a challenge, especially in good times like now when all of Florida’s government entities are taking in record amounts of cash because of increased property values and federal pandemic money. There is an old saying about all governments: They will spend whatever taxpayers give them, and then some.

Florida lawmakers and governors are no different. Two factors:

1. Look at the accompanying budget table comparing the growth in state spending under Govs. Rick Scott and DeSantis. In DeSantis’ five budget years, state spending increased 36.1%. In Scott’s eight years, it went up 31.1%

Similarly, during DeSantis’ first five years, state spending outpaced the growth in a measurement often used to gauge whether government spending is out of control — that is, the combined growth rates of population and inflation. In that measurement, DeSantis, 36.1% versus 30.8% in the same period. Another one: When Scott left office, state government was spending $3,959 per person. Under DeSantis, it’s now $5,225, an increase of 32%. Adjusted for inflation, the per-person cost is still $1,030 more per person.

2. Budget turkeys

Florida TaxWatch, the Tallahassee-based watchdog on state government spending since 1979, produces an annual list of “Budget Turkeys.” These are usually lawmakers’ hometown projects. “While a project may be worthwhile,” TaxWatch notes, “Budget Turkeys tend to serve a limited area, are not subject to competitive bidding and are often not core functions of state government; they would be more appropriately funded with local or private dollars.” In the 2023-24 budget, TaxWatch identified 218 appropriations items worth $598.7 million as Budget Turkeys. But the picture is much worse. TaxWatch identified a record number of member projects — more than 1,540 projects worth $3.2 billion in the new budget. TaxWatch: “The amount is even more remarkable when one considers there are 160 legislators. This means each lawmaker was able to secure an average of nearly 10 member projects worth an average of $20 million for their home district.”

As noted earlier, Gov. DeSantis vetoed projects almost worth the total TaxWatch identified. But the point to be noted is that even though so-called conservative Republicans control state spending, they are politicians. If the money is there — as it is now in gushing amounts — they will spend it.

Florida’s lawmakers need limits on spending. Colorado caps it at the growth in inflation and population; above that, Coloradans receive a refund.

Without limits and with money flowing because of growth, lawmakers can easily be tempted to do dumb things like they do in California and New York.

Lawmakers give tax breaks to some; why not to all?

Gov. Ron DeSantis and Legislature approved $2.7 billion in temporary and permanent tax cuts in the 2023 legislative session.

Nice work. Compared to other states, the tax cuts show Florida lawmakers know the importance of cutting taxes.

But being the government cynic we are, we tend to find the down side to the good. For instance, when you go through the accompanying list of tax cuts, this should become obvious: It’s a compendium of tax exemptions for special groups, not for all Floridians. This is the annual legislative gimmick — how Republican lawmakers claim they “cut taxes.” Yes, they did — for some, not for all.

Given the huge amount of tax money flowing into state coffers and that lawmakers cut an estimated $2.7 billion in taxes, why not be fair to all Floridians and lower the state’s 6% sales tax rate? Here’s why not: They political chickens.

They’re afraid of what would happen in a recession — that the state wouldn’t have enough money to cover everything they’ve built in to spending and actually would have to reduce spending.

The way it is now — with thousands of people moving to Florida, buying homes and items that fall under the sales tax, the state is gushing with cash. And as lawmakers always do: Whatever they get, they spend.

But rather than play the salestax holiday gimmick, Republican lawmakers should think like real Republicans. If they cut the sales tax rate to, say, 5%, think how much money that would leave in Floridians pockets to spend and fuel the economy and state coffers even more than now.

TAX CUTS & HOLIDAYS

Here are the tax cuts the Legislature and Gov. Ron DeSantis approved: n $850 million — Ad valorem tax cuts, corporate income tax credits and sales tax exemption for building materials to increase affordable housing n $500 million — Toll relief starting Jan. 1, 2023, to frequent commuters; discounts tolls 50% for drivers utilizing SunPass with more than 35 monthly transactions. n $256 million — Reduces the business rent tax from 5.5% to 4.5%, effective Dec. 1, 2023. n $229.9 million — Three-month sales tax holiday on outdoor recreation gear, event tickets, children’s toys — sunglasses selling for $100 or less, tents selling for $200 or less and kayaks or canoes selling for $500 or less; also includes tickets for events, museums, the arts, and more; children’s toys selling at $75 or less; children’s athletic equipment selling at $100 or less. n $160.6 million — Two Back-toSchool sales tax holidays, one in the fall and one in the spring — covers clothing up to $100, school supplies up to $50, learning aides and jigsaw puzzles up to $30 and personal computers and accessories up to $1,500. n $158.7 million — Permanent sales tax exemption for baby and toddler necessities — Covers certain baby and toddler necessities such as clothing, shoes and diapers for children under 5, all baby wipes, cribs and strollers. n $143.8 million — Two 14-day disaster preparedness sales tax holiday — Including generators at $3,000 or less; over-the-counter pet medications selling at $100 or less; and common household consumable items selling at $30 or less. n $86.2 million — Extends for one year the current tax exemption on Energy Star appliances – Covers washing machines, clothes dryers and water heaters selling for $1,500 or less and refrigerators or combination refrigerators/freezers selling for $4,500 or less that meet or exceed the energy star standards. n $55 million — Distributed over two years to promote horse racing and breeding and creates a credit against the pari-mutuel tax for federal assessments saving the industry $5 million annually. n $47 million — Adjustments to ad valorem tax and tax relief for disabled veterans and their surviving spouses; properties used for education and religious purposes and refunds for damaged properties n $45 million — Corporate income tax credits on residential graywater tax credit, Strong Families tax credit, Brownfields tax credit and human breastmilk fortifier manufacturing equipment. n $39.8 million — Permanent sales tax exemption for oral hygiene products — toothpaste, mouthwash, dental floss, electric and manual toothbrushes and dental picks and irrigators.

“If we are to build a better world, we must remember that the guiding principle is this — a policy of freedom for the individual is the only truly progressive policy.”

Friedrich Hayek “Road to Serfdom,” 1944

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Office and Accounting Coordinator / Donna Condon, DCondon@ YourObserver.com n $27.5 million — Permanent sales tax exemption for adult diapers and incontinence undergarments, pads and liners n $15.4 million — Seven-day Skilled Worker Tool — covers various hand tools and power tools and accessories. n $6.9 million — One-year sales tax exemption on gas stoves — the purchase of new stoves fueled by combustible gas such as syngas, natural gas, propane, butane, liquefied petroleum gas or other flammable gas. n $4.5 million — Permanent sales tax exemption for firearm safety and storage devices — Covers firearm safes, firearm lockboxes, firearm cases, devices to store a firearm, trigger locks and cable locks. n $1.8 million — Two-year extension for the exemption on natural gas fuel tax — Natural gas fuel is any liquefied petroleum gas product used in a motor vehicle. n $1.6 million — Permanent sales tax exemption for private investigative services — Covers private investigation services sold by investigative agencies employing three or fewer employees. n $900,000 — Permanent sales tax exemption for machinery and equipment used for renewable natural gas — Covers machinery and equipment used in the production, storage, transportation, compression or blending of renewable natural gas. n $700,000 — Permanent sales tax

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File photo

On June 24, a boat explosion occurred in the New Pass channel near Longboat Key.