Ending months of dire predictions of a state on the edge of fiscal collapse, Gov. Charlie Crist signed a spending plan on Wednesday that minimizes drastic cuts in state programs by relying on billions in help from the federal government.
The spending plan also raises more than $2 billion with a $1 per pack increase on the state's cigarette tax, increased tuition at state colleges and myriad hikes in fees for everything from driver licenses to court costs.
The $66.5 billion spending plan for the fiscal year beginning July 1 has been cut more than 10 percent in just the past three years as the state's collapsed real estate and construction markets have dried up tax revenues used to pay for schools, universities, prisons and hundreds of other programs.
But Crist was characteristically optimistic Wednesday, saying that the worst-case scenarios of the early release of prisoners, cuts in education spending and massive layoffs of state employees were averted.
Flanked by lawmakers from both parties at a Wednesday morning press conference, Crist, a candidate for U.S. Senate in 2010, said the economic forecasts earlier this year were "disheartening, to say the least."
"Many predicted dark days for our state. Today, I am happy to say that the budget I'm about to sign is not nearly as dismal as many expected it to be," said Crist.
Crist said the state's economy has bottomed out - a prediction borne out by tax revenues that seem to have steadied after years of dropping. But the infusion of nearly $6 billion in federal stimulus money, and billions more for the following fiscal year, has stalled any discussion of revamping Florida's boom-or-bust tax structure that relies heavily on tourism and real estate transactions to pay for basic services.
Rep. Keith Fitzgerald, D-Sarasota, said there is "great irony" to having the Democratic administration of President Barack Obama bail out a state facing historic budget cuts after 10 years of Republican administration.
"The Republican Party who has been responsible for ruining the state is really getting bailed out by President Obama, who they turn around and continuously criticize," said Fitzgerald.
And Fitzgerald, a political science professor at New College, said it is not clear whether there will be any political fallout for the increases in tuition and fees that Floridians will almost certainly notice in the coming months.
"When they get that speeding ticket and it's now $350 or a tuition bill that makes your eyes pop out, they're not going to say 'Darn that Gov. Crist for signing that budget bill,'" said Fitzgerald.
Crist vetoed two items in the budget. He bowed to National Rifle Association concerns and reversed a $6 million transfer from a savings account set aside to pay for concealed weapons permits. That money will now stay dedicated for that program instead of shifting to paying for other state programs.
And in a possibly unconstitutional move, Crist vetoed budget language that mandated a 2 percent pay cut for state employees making more than $45,000.
While the state's constitution allows governors to veto line items in a budget approved by the Legislature, it does not allow the governor to veto "proviso" language that spells out how the executive branch shall carry out certain spending decisions unless he also vetoes corresponding line items.
"It's clearly unconstitutional," said Senate budget chief J.D. Alexander, R-Lake Wales.
Asked whether he thought the Legislature would sue over the issue, as it has done in the past with a successful challenge of a 2000 veto by Gov. Jeb Bush, Alexander said, "If it was up to me, I certainly would just out of principle. I don't have any personal issue with the governor, but it's against the constitution."
Still, a legal challenge seems unlikely. Lawmakers didn't challenge Crist's 2007 veto of proviso language that allowed for limited tuition hikes at state universities, a position Crist reversed in 2008.
Crist said Wednesday he thinks he has the legal authority to veto the salary reduction for state employees. And his veto will not affect the state's budget picture, because he asked agency heads to make cuts in spending equal to the proposed salary cuts.
"I believe now is not the best time to reduce state employees' pay, especially as we are seeing many signs that our economy is beginning to turn around," Crist said. "It has been my hope that we would not have to take millions of dollars out of the pockets of 28,000 people throughout our state."