Budget deficits bigger than Crist figured
Preliminary estimates from state economists show that Gov. Charlie Crist's budget recommendations were, as many feared, a little too sunny for these dark times. Taxes on sales, doc stamps, fuel and even cigarettes are plummeting faster than forecast in November.
Economists are projecting that the current year deficit ranges anywhere from $894 million to $1.1 billion. Crist estimated $700 million.
Next year, however, it's even worse. The governor estimated an additional deficit next year of $1.2 billion. That's smaller than what economists are debating -- a new hole of $2.2 billion to $2.6 billion. They'll have a final number by day's end. Hopefully.
The good news for Crist: The federal stimulus money should help fill much of the hole. All told, Crist wants to spend $3.6 billion in stimulus money this year and $6.7 billion next year. However, a good chunk of that money doesn't apply to the section of the budget that's running deficits.
Legislators all along had projected a budget deficit next year of a combined $5.5 billion to $6 billion. They'll likely be right. At least until the next estimating conference when tax collections sag even more.
Meantime, lawmakers might be able to plug this year's deficit by using about $106 million in unspent money, $272.4 million from the budget stabilization fund, and the remaining $500 million from the Lawton Chiles Fund (after $700 million is emptied from it June 15). All those moves, however, might be considered greatly unpopular.
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