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House budget includes PECO patch
01/27/12
The budget proposal rolled out by the Florida House includes revenue tweaks that would allow the state to continue funding education-related construction projects.
The proposed General Appropriations Act released Friday would provide nearly $380 million for construction and repairs at colleges, universities and charter schools, where state economic forecasters had previously estimated no money would be available through the Public Education Capital Outlay.
The proposed budget includes $55 million for PECO-funded building maintenance at charter schools, nearly $139 million in projects at state colleges, and nearly $154 million for projects at state universities, but no money for school districts.
The House Finance and Tax Committee on Thursday introduced a bill that would increase some tax rates for gross receipts tax that funds PECO, with offsetting decreases in communications taxes that flow into the state's general fund.
House Bill 5703 has not yet been scored by state economic forecasters, but legislative staff estimate it would boost gross receipts revenues by nearly $50 million in the first year, allowing for a maximum PECO appropriation of $382 million, assuming the state issues new bonds backed by the additional gross receipts revenue.
Gross receipts revenues have flatlined in recent years, beset by the economic downturn as well as structural problems caused by increases in energy efficiency and fewer people using landline telephones.
Downward revisions in the growth of gross receipts taxes have cuased the state to reach its cap on available bonds and exhausted the PECO trust fund. That in turn prompted state education officials, at the behest of Gov. Rick Scott, to ask school districts, colleges and universities to identify money for construction projects that they could return in an effort to replenish the trust fund.
House Speaker Dean Cannon has said he is wary of looking for fundamental fixes to the program at a time when its revenues are near a cyclical low. Finance and Tax Chairman Steve Precourt, R-Orlando, said his proposal would not fix PECO's systemic problems, but it would allow lawmakers to appropriate more money without a net increase in taxes.
This story is developing and will be updated when new information becomes available.
Reporter Travis Pillow can be reached at tpillow@thefloridacurrent.com
