$3 billion deficit overshadows other issues

A balanced budget, a $3 billion deficit, an Internet tax, a ballooning Medicaid budget, reverse mortgages that victimize seniors... The list goes on, but which should be the priority?

Before the start of the state Legislative session this week, State Rep. Baxter Troutman went to Speaker Larry Cretul.

On Jan. 1, the minimum unemployment tax rate went from $8.40 per employee to $100.30.

"Local businesses are just getting killed," said Troutman, R-Winter Haven, himself the owner of employment offices.

For instance, Mark Bartlett paid about $250 in unemployment taxes last year for the 30-plus employees of No Frills Grill in Placid Lakes. In 2010, the state of Florida would have wanted more than $3,000.

Job one this year is dealing with a $3 billion deficit, but the first task accomplished by the 2010 Florida Legislature was to pass HB 7033, which delayed a scheduled increase in unemployment compensation taxes.

"I'm just one inky-dinky grain of salt," Troutman said. "This leaves hundreds of millions in the economy."

Both Houses voted unanimously and passed the bill on the opening day of the session.

"The governor has already signed it," said Troutman, who represents northwestern Highlands County.

HB 7033 also extends benefits for eight weeks. Currently, the state is borrowing federal money to pay unemployment benefits to 20,000 Floridians because the state's unemployment trust fund is empty.

Balanced budget

The 2009 legislative session dealt with a $2 billion shortfall. This year, it's $3 billion. Will this be Troutman's most difficult session in Tallahassee?

"It's still too early to say. Last year was extremely difficult for the House. We lost our leader," he said, a reference to Ray Sansom, who resigned after a scandal. "This year, we've been in a recession posture now for 12 months. We've had more time to get used to it."

The only constitutional requirement of the Florida Legislature is to pass a balanced budget. However, as chair of the General Government Policy Council, Troutman also wants to make government more efficient by repealing 25 antiquated laws. The state could also streamline its workforce by crosstraining employees to wear two or three hats.

"Clearly, though, job creation is the important," Troutman said. "Before you apply the sutures, you've got to stop the bleeding. We've got to shore up the job base."

Local bills

SPRING LAKE

Local governments and citizens met in December with Troutman and Rep. Denise Grimsley. The most controversial request for a bill was from Spring Lake Improvement District, which wanted to update its ordinances, take over defunct homeowner associations, and to allow for a sheriff's substation, a fire station and a school.

Spring Lake resident Billie Jewett was adamantly opposed: "I think I represent almost everyone," he told the legislators. He had the signatures of 120 residents, and thought nearly 100 percent opposed what he called a power grab.

"There will be a local bill that allows that," Troutman said. "I voted against it."

He got no calls from residents who wanted the bill, but several from detractors. Even so, Grimsley and Sen. J.D. Alexander have agreed to carry the bill through their houses.

JASA FUNDING

More than a dozen former inmates and alcohol or drug abusers came in December, all with yellow name tags and the acronym JASA, for Jail Alternatives to Substance Abuse. Five took the microphone to tell lawmakers that JASA saved their lives. One man, who preferred to speak from the audience, said he wrote letters to JASA for 43 straight days. The program was full.

More funding, said Troutman, is on the legislative to-do list. "An ounce of prevention is worth a pound of cure. I think it's a fabulous program."

INTERNET TAX

As a group, the Highlands County commissioners asked legislators to consider taxing the Internet.

"I'm not hearing much about that," Troutman said. The Republican mantra is no new taxes, but he views a tax on Amazon.com or eBay goods as tax equalization.

"It's an issue that will not go away," Troutman said.

LICENSE PLATE FEES

Commission Vice Chairman Jeff Carlson asked lawmakers to double the $1.50 fee on license plate renewals. In Florida, a million trips were denied to the transportation disadvantaged last year due to a lack of funding, Carlson said.

"We can't afford to have public transportation," Carlson said.

"At this point, I'd venture to say no," Troutman said. "There's been a tremendous pushback on what we've done already." In the last session, the Legislature raised dozens of motor vehicle fees.

REVERSE MORTGAGES

The Senate passed SB 1532, sponsored by Sen. Mike Fasano, R-New Port Richey. It lessens the chances that seniors will be victimized by unscrupulous mortgage brokers. Companies offering reverse mortgages to seniors would be required to disclose more and provide counselors before reverse loans can be made. Fees would be capped at 2 percent of the value of the loan.