Education Panel Seeks Property Tax Increase

 HOUSE SPEAKER CALLS IDEA A NO GO

TALLAHASSEE – Senators are looking at rolling back property tax cuts made three years ago in an attempt to find money for cash-strapped schools.

Sen. Don Sullivan, R-St. Petersburg, said the education appropriation committee he leads will consider a budget Monday with $640 million in new money from a property tax increase of 80 cents on $1,000 worth of assessed value. The panel rejected a budget with allocations based on the latest estimates of available revenues. The committee was shocked when Sandy D’Alemberte, president of Florida State University, said if universities get no more than the $2.38 billion in the Senate budget, FSU couldn’t accept new students next year.

Several members of the committee said they could not accept the cuts that would be required if no new money is found.

“I couldn’t vote for it,” said Sen. Les Miller, D-Tampa. “I wasn’t sent here to hurt the education system.”

Education was cut by more than $600 million last year, and estimates have next year’s budget barely making up for those cuts.

The property tax increase stands little chance. House Speaker Tom Feeney, R-Oviedo, called it a “nonstarter.” And Gov. Jeb Bush has rejected tax increases as solutions to recent revenue shortfalls.

But the issue could get caught up in the battle over tax reform. Senate President John McKay, R-Bradenton, wants to lower the sales tax rate from 6 percent to 4.5 percent and extend the tax to many now-untaxed services. He says the tax base is shrinking and that schools and health care will suffer.

House Republicans say government spending has increased faster than income during the past 10 years. They say the tax structure needs no significant changes.

The Senate’s proposed education budget was $18.9 billion, compared with Bush ‘s $19.1 billion. But Sullivan said the Senate budget doesn’t reflect reduced contributions to the Florida Retirement System. Senators have criticized Bush for claiming the retirement money as an increase in spending on education.

With the increase senators will seek Monday, the Senate’s proposed education budget will grow to about $19.5 billion.

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Tax Revolt

Paul Beckner of Citizens for a Sound Economy speaks Wednesday at a Tallahassee rally, asking the House to defeat a tax reform plan.