Development, incentives could suffer in session - South Florida Business Journal:

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billion hole in the state’s $66 billion So far, the budget patches proposed by Gov. Charlide Crist and Republican legislativwe leaders rely chiefly on spending cuts anddraininf reserves. Tax hikes and fee increasexs lookunlikely — but only for now. “Thids is going to be like two weeksxof tryouts,” Randy Miller, a VP with the , said of the specia session scheduled for Jan. 5-16. “But come the regular sessiom in March, we know that’s when we’ll be in the major leaguesx and a lot is goinhg to be thrownat us.” Also off the table for the short-termn appears to be Crist’ds push for lawmakers to approve a gambling agreement with the .
The governo estimates that deal coulddraw $135 millio n in new money for the But Senate President Jeff Atwater, R-Nortbh Palm Beach, and House Speaker Ray Sansom, rule out trying to approve a hurry-u compact in special likely forcing deeper budget cuts. Business incentives dashed? Losingh those new dollars also appears to have helpexd derail a handful of business incentives that Crist and lawmakersx had considered financing to soften the blow of yet anothed round ofbudget cuts.
A small-businesss loan program aimed at easing the credit crunch for some firmw and expanded tax credits for companies that create Florida jobs are initiatives that instead will have to waituntilo spring, said Crist spokesman Sterlinvg Ivey. “Timing-wise, you can only do so much in a specialp session,” Ivey said. “But we’re looking at new ideas for the next fiscal year that will help the economy get With Florida leading the nation in job losse and second inmortgage foreclosures, the state’sx economy is expected to be down througb the first quarter of 2010 with even sharper cuts planned for next year’s budget.
Lawmakeras from both parties say that to ease what could beanothefr $5 billion in spending reductions, the Legislatures next spring must revisit the billions of dollars in sales-tax exemptiones now applied to dozens of goods and services shielding interests ranging from accountants to ostricyh farmers and charter boat fishing captains. Although it looksw unlikely to emerge from the January session, lawmakers also talk about increasing the state’s cigarette tax by between $1 to $1.34 a pack to pull $700 million a year into the state treasury.
House Democratic Leadeer Franklin Sands of Weston is calling on ruling Republicansa to hold public hearings during the January sessioh to allow talk of tax saying there’s a need for “open talks with all option s on the table.” The stunning decline in tax receipts has seen Florida’sa budget shrink from a brimming $72 billion in May 2007 to what is likely to be a battered $64 billion spending plan when the special session Health care and schools absorhb most of the state’s generalp revenue.
But spending reductions will be “There’s talk of cutting $30 million from the state’es affordable housing program that goes to downpaymeng assistance,” said David a VP with the . “That kind of cut wouled really hurt because with interesty ratesso low, a lot of people may just need a little help to take advantage of this market.” Sen. Mike Haridopolos, R-Merritt a member of the Senate’s budget acknowledged that while cutting, lawmaker s are intent on not further setting backthe state’sd faltering economy.
“We have to consider what programs reallyg are our best return onour investment,” Haridopolos