To Tallahassee and Back: A Balanced State Budget? Absolutely!

We often hear about budget deficits in Washington.  We hear promises that budgets will be balanced but they never seem to be.  The ongoing sequestration issue has brought the topic of balanced, or in this case, unbalanced budgets into the public arena.  People whine, complain, gnash their teeth and generally bemoan the fact that our federal government runs in the red time and time again.  Thankfully, by directive of the Florida Constitution, our state does not, nor can it, ever have an unbalanced budget.

A balanced budget is simply a budget which demonstrates that the amount of money coming into the state equals the money going out (whether spent on services or put into a fund for future use).  If the outgo ever exceeds the inflow and can’t be covered by surpluses, then the legislature is required to get back together and fix the problem.  This is common sense to most households.  As individuals and families we can’t spend more than we have.  If we choose to, we run up our credit cards or take loans, but those temporary fixes come due someday.  When the time comes that we can’t pay our bills any longer we cut back on non-essentials.  In Florida, this concept is understood because it HAS to be understood.  If not, the legislature is in violation of the Constitution and that is not a good thing.

We are at the point in the legislative process when the preliminary budget package is being released.  In the House and Senate there is a full appropriations committee which oversees the work of subcommittees.  Each subcommittee is responsible for a specific area of expertise (i.e. Health and Human Services, Education, Transportation & Economic Development, etc.).  Each of these subcommittees has been building their respective budget proposals to be considered by the chamber.  Once approved, these smaller budgets are enrolled into one big package.  This large budget becomes the House’s version of how the state will manage its money during fiscal year 2013-14.  In consultation with the Senate, the competing proposals will be combined, differences reconciled and will eventually become the state’s budget.  I will discuss the budget conference process in a future post.

Following the tragic events of 9-11 and the aftermath, Florida’s economy plummeted.  Since the state relies heavily on tourism, the grounding of planes following the terrorist attacks was just the start of the economic woes that hit our state.  The 2002 legislative session was also a reapportionment year, so the legislature began two months early (in January of 2002) to redraw legislative and congressional district lines.  Additionally, the state budget had to be rewritten not only for that current fiscal year, the next year’s budget had to be written in such a way as to take into account the projected downturn in state revenues.  The legislature was in session for many months that year, an experience that I remember all too well.  Thankfully, the budget building process of 2002 has not been repeated on such a large scale.

The 2001-2002 fiscal year was probably the best example of a constitutionally required balanced budget at work.  Unlike the federal government which would not be required to balance its budget, but instead just borrow more money to cover the cost overruns, Florida must react quickly to changes in its revenue stream.  Services may be cut, departments may be trimmed, but in the end these actions ensure that a healthy economic climate continues.  When things pick up and more money comes in, the legislature can choose to bank the surplus, restore previous cuts, create new programs, or implement a combination of all three.  In any event, the budget must zero out by the time the final vote is taken and the budget is sent to the governor for his signature.

A constitutionally required balance budget sometimes forces tough choices, but it guarantees that the future of Florida will be safe and secure, economically anyway, for later generations.  And that, when all is said and done, is one of the best things lawmakers can accomplish for their constituents back home.

If you have any questions about the budget process, or any other issue facing the Florida Legislature, please leave me a comment.  I will respond in a reply or a future blog post.  Thank you for your loyal readership!