PRESS RELEASE December 28, 2000

Tallahassee, FL – Florida lawmakers will have to find ways to trim down in the coming year. Florida TaxWatch is providing them with New Year's resolutions that will help ease a projected $950 million budget squeeze.

In a Budget Watch Alert issued today, TaxWatch says Florida must eliminate non-essential programs and spending to deal with the budget crunch.

"It is critical that the Florida legislature achieve responsible, effective cost-reduction," said TaxWatch President and CEO Dominic M. Calabro. "We're providing guidelines to help them trim the fat and still meet the needs of Floridians."

Guiding Principles For Budget Evaluation Meets Taxpayer Priorities Accountable Competitive Effective Market Driven Customer Driven Performance-Based Efficient Essential to Core State Functions Subject to Legislative Oversight

According to Florida's general revenue forecasters, next year's projected state spending commitments and demands exceed expected revenues by some $950 million. The budget squeeze is caused in large part by increased Medicaid costs and fiscal commitments made in prior years.

Florida TaxWatch recommends that each state program be evaluated biannually to determine justification for continuation, modification or deletion. The justification should be based on whether or not the program actually provides to Floridians the benefit it was slated to provide at a competitive and efficient cost.

"It is important for the Governor and the legislature to keep an eye on what is really most important to Floridians," Calabro said. "The focus should be on government that, at the end of the day, will leave Floridians healthier, safer, better educated and more prosperous."

Florida TaxWatch recommends the following principles for budget evaluations, which have guided the organization's own research and analysis since 1979:

Meets Taxpayer Priorities Accountable Competitive Effective Market Driven Customer Driven Performance-Based Efficient Essential to Core State Functions Subject to Legislative Oversight

In mid-January, TaxWatch will use these principles to evaluate Governor Jeb Bush's proposed budget cuts and reallocations of state funds. TaxWatch will also release its own list of potential cost savers from the 2000 Davis Productivity Awards. A preliminary assessment reveals an estimated $400 million dollars in savings that could be realized with implementation of adaptable Davis Productivity Award-winning achievements across state government.

"These ideas must be spread across all areas of state government in order to realize their true value," said Calabro. "Agencies face a true challenge in 2001 to operate more efficiently without sacrificing the quality of Florida's public service."