- April 24, 2024
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The following is a release from the Florida Senate:
The Florida Senate sent a message March 15 to Floridians, saying state government will not grow any faster than a family’s ability to pay for it. Senators voted to place a “Smart Cap” on the government’s budget by passing Senate Joint Resolution 958, sponsored by Senator Ellyn Bogdanoff (R-Ft. Lauderdale) and long championed by Senate President Mike Haridopolos.
“This ‘Smart Cap’ amendment makes perfect sense, and it’s something long overdue,” said Haridopolos. “During better economic times, the natural desire in the past was to spend all the tax revenue the government received. It was simply hard to say no. This cap forces future legislators to spend responsibly, save for a rainy day, and return any excess taxes back to Floridians.”
The amendment would limit revenues collected by state government to the amount collected the previous year, plus an annual adjustment based on a combination of population growth and the rate of inflation. Any funds in excess of the limits will be placed in the state’s “rainy day fund” until that fund reaches 10% of the prior year’s total budget — at that point, the Legislature must vote to either provide tax relief or reduce property taxes.
“I call this the Old Testament approach. Save during the good years so that we can provide for Floridians needs during the lean years,” added President Haridopolos.
“Instead of spending money just to spend it, we should return it to the people who pay for government to operate — the taxpayers,” said Senator Bogdanoff. “With this responsible growth, it will be easier for the Legislature to make needed cuts when the economy takes a downturn, similar to what we face today.”
The proposed constitutional amendment needs approval by the House of Representatives before voters have an opportunity to approve it in 2012.
