BY DAVID ROYSE
NEWS SERVICE OF FLORIDA

TALLAHASSEE – State agencies had until Thursday to get their legislative budget requests to the governor’s office, and they shouldn’t ask for any increases, the governor warns.

With the state facing a possible $2.6 billion budget shortfall in the coming year, Gov. Charlie Crist this week let state agencies in on the obvious – not only are any requests for increases not likely to be entertained, department heads should be suggesting ways to continue cutting spending.

In a message this week to agency heads ahead of the Thursday deadline, Crist’s budget director Jerry McDaniel made the case again for needing to scrimp, despite national talk of a rebounding economy. State economists have warned that Florida’s recovery will lag behind the nation’s as a whole.

No reduction amount given

"The estimated growth in Medicaid costs alone will consume all new growth in general revenue that is anticipated to occur," McDaniel wrote to agency heads this week. The governor, he said, expects "no requested increases in agencies’ budgets as well as a full slate of reducation options."

"Beyond health care, but equally important, is insuring adequate funding levels for education and public safety, which has always been a priority," McDaniel wrote.

In addition to continued sluggish tax collections, lawmakers are facing the loss of stimulus money, on which the current year budget is balanced in part.

Unlike last year, agency heads haven’t been given any directives this year for how much they should cut. Last year, agencies were working under budget "exercises" that essentially asked them to come up with ways to cut as much as 10 percent from their spending plans.

Crist: Too early to talk specifics

The current year budget is about $66.5 billion.

Aside from the letter from his budget chief, the usually sunny dispositioned Crist has largely declined to talk specifics about his outlook for state spending for the coming year, including how the state will replace the stimulus money.

Pressed on the issue on Tuesday, Crist told reporters it was too early to talk specifics about next year’s budget and where he foresees program cuts.

Crist in recent weeks has publicly taken credit for shrinking the state budget, though critics have noted that lawmakers were forced by the economy to cut spending.

Still, Crist offered that the Legislature didn’t have to cut the budget to deal with shrinking tax collections – they could have increased taxes, but didn’t – though they did increase several fees.

"You always have choices, you can either raise taxes or cut spending," Crist said. "We’ve chosen to cut spending."