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• State Issues

Dear Representative:

     On behalf of the National Taxpayers Union’s 24,000 members in Florida, I urge you to support Senate Joint Resolution 958 (SJR 958), which would create a stronger limitation on tax and spending increases in the state constitution. SJR 958, which recently passed the Senate, would provide vital protections for Florida taxpayers.

     For the last few years, Florida’s families and small businesses have struggled to get by in this sluggish economy, with unemployment hovering around 12 percent. Meanwhile, the state government faces deficits between $3.6 billion and $4.6 billion. Floridians are looking to their leaders for relief. By keeping taxes low, making government expenditures manageable, and in the process allowing the economy to flourish, you can provide that relief. One of the best ways to ensure that the burden on hard-working Floridians does not become unsustainable over the long run is to adopt a strong tax and expenditure limitation now.

     Currently, state law restricts the annual growth in state revenue to a five-year rolling average of personal income. SJR 958 would still allow the state’s budget to grow, but at an affordable rate: increases in inflation plus population from year to year. Any excess revenue collected would be transferred to the budget stabilization fund until it reaches 10 percent of the prior year’s total budget. Receipts beyond this level would be devoted first to property tax relief, and then to other forms of savings for taxpayers. Additionally, in the event of an emergency, such as a hurricane, the Legislature could spend above the cap with approval from a supermajority of lawmakers or voters.

     The fact of the matter is that limited government tends to keep tax rates low, which in turn gives private-sector companies the wherewithal to prosper and allows the quality of life to improve. Limited government also tends to be more stable and supportable financially. Compare Indiana and Utah, which have weathered the recession reasonably well, to states such as Illinois and New York, which have not. Constitutional limitations like SJR 958 encourage consensus-building over spending priorities as well as better oversight of existing programs, thereby sparing citizens the hardship of constantly higher demands on their pocketbooks. Nor should the concepts of SJR 958 be worrisome to lawmakers. Roughly two dozen states limit all or part of their budget increases to economic measurements such as inflation or personal income growth. When properly structured – as they are in SJR 958 – such provisions are a help, not a hindrance, to fiscal policy.

     Floridians are counting you to look after their long-term interests. Nothing could be more appropriate in doing so than to pass SJR 958.

Sincerely,

John Stephenson
State Government Affairs Manager