Fiscal gloom overshadows lawmakers' opening day

Faced with budget cuts, Gov. Crist offers more modest Florida agenda

TALLAHASSEE — Facing monumental budget blues, Florida's lawmakers could not even agree on the depth of the problem as they kicked off a 60-day session with discord and rancor.

Gov. Charlie Crist said during his State of the State address Tuesday evening that Florida's economy still "ranks ahead of most nations of the world," and "we set a model at which others can marvel."

But House Speaker Marco Rubio, R-West Miami, could barely hide his disappointment in Crist's first-year pushes to cut property taxes and insurance, saying the state's critical real estate market "is in collapse."

"Last year, our state failed to confront and solve the economic problems before us in a meaningful way," said Rubio. "And now, we are facing the consequences. Unless we act boldly, our economy will continue to be worse than the national economy."

Meanwhile, Democrats who have allied themselves with Crist for much of his first year, cast an eye toward the November elections, criticizing the governor's attendance records and warning that the $4 billion-plus drop in state revenues -- about 13 percent of Florida's tax collections -- would lead to cuts in education and services for the poor that could no longer be ignored.

"It's not fat that they're cutting," said Senate Democratic Leader Steve Geller, D-Hallandale Beach. "We're now breaking the bones and trying to eat the marrow. There's just nothing there left. You cannot continue to cut without finding new ways to generate new money."

Crist refuses to consider anything even related to a tax increase. But he is urging lawmakers to borrow money from savings accounts dedicated for specific purposes to tide over the state, as well as more money from the Florida Lottery and expanded Indian gambling.

Rubio tersely ruled out any such effort.

Crist spoke to the House and Senate at 6 p.m. Tuesday to coincide with TV newscasts. Longtime Capitol observers could not remember any governor giving the traditional kickoff speech in the evening. Crist's staff said it was an effort to share the message with more Floridians who cannot tune in to the traditional late-morning speech.

The late start for the speech diminished the usual pageantry of the day. Instead of one block of speech-making at 11 a.m., with former lawmakers, Supreme Court justices and other dignitaries in attendance, the gallery in the House chamber had empty seats as Crist's speech began. The halls of the Capitol, usually packed with lobbyists, were empty and echoing.

Like his predecessor, Gov. Jeb Bush, Crist featured video snippets of average Floridians who praised lawmakers and the governor.

Per tradition, all lawmakers rose to applaud military veterans and adoptive parents when highlighted by Crist. But many House Republicans declined to applaud Crist's praise of automatic restoration of rights for felons and reducing greenhouse gases.

While he said the budget troubles are not affecting his agenda, Crist's priorities are markedly more subdued than last year's determined attack to not only lower property insurance premiums and taxes, but to reduce greenhouse gases and increase felons' rights.

This year, Crist is pushing for a change to the arcane rules that limit competition among hospitals and emergency services. He is also requesting expanded physical education classes for sixth-graders and reduction in taxes for "green" energy as well as the film and TV industries. Crist and Senate President Ken Pruitt, R-Port St. Lucie, have not emphasized deeper property tax cuts this year. Rubio pressed for more.

"If we do nothing, later this year property tax owners are going to get their tax bill, and it is going to look a lot like the one they got last year," Rubio said. "They are going to be upset ... Never in our history have Floridians been more anxious about the economy."

On the other hand, Pruitt could hardly contain his pro-Crist ardor.

"What can I say?" said Pruitt. "He is Franklin Roosevelt and Ronald Reagan all wrapped up in one. I really love this man. His can-do, it's-always-morning-in-America attitude is an inspiration to every citizen in our great state ... Speaker Rubio, I love him, too. He's a little tougher to love."

Sen. Mike Bennett, R-Bradenton, said he expects a rough session, but lawmakers will find a way out of the budget crisis at the end.

"Everybody's got different ideas on how to get stuff done, but it really doesn't mean anything, it really doesn't," Bennett said. "Reality hits home. I can't get everything I want, you can't have everything you want, so we start merging together. We are starting out on a high note. We'll kill each other in two weeks, and then we'll come together at the end."

Rep. Doug Holder, R-Sarasota, said the differences of opinions about how to rectify the state's fiscal situation could be beneficial.

"It's a little bit gloomy right now, but I think that what's going to end up happening is we'll focus on different ways to fix our problems," Holder said. "I think that with having different ideas, it gives us the opportunity to really evaluate the different ideas and choose just what's right for each individual situation for the state as a whole."

Rep. Keith Fitzgerald, D-Sarasota, said "the governor's always optimistic, and he puts a good spin on things, but we've got some real challenges before us."

Fitzgerald said the Democrats agree with Crist's plan to use some of the state's budget reserves to offset the financial shortfall.

"The House leadership is very reluctant about spending this money for this economic downturn," Fitzgerald said.

"We think that it doesn't make a whole lot of sense in the midst of this economic downturn not to spend at least some of that money. So that's where the debate is going to be -- how far do you dip into those reserves."

The Florida Democratic Party, bucking its own legislative members who have largely embraced Crist, attacked the governor on Monday for taking off more than half the work days this year to campaign for the property tax vote or GOP presidential candidate John McCain..

For at least a day, that sort of politicking paled when compared with the worst economic crisis to hit the state in at least 30 years.

"Florida did not get into this ditch in the last 60 days, and we're not going to get out of it in the next 60 days," said House Democratic Leader Dan Gelber, D-Miami Beach. "This is not something that is a temporary moment."

But there were moments of levity. The House led off the day with four different prayers.

"Whenever you start a session with a prayer from two ministers, a rabbi and a priest," Rubio said, "you know you're expecting a tough year."

H-T capital bureau reporters Lloyd Dunkelberger, Carol Lee and Anna Scott contributed to this story.