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LEST we think Hawaii is alone, other states are convening special legislative sessions to deal with financial problems brought on by the Sept. 11 attacks, too. States across nation
face budget crisesAccording to the Wall Street Journal, "Florida faces perhaps the toughest challenge of any state, with the exception of tourism-dependent Hawaii."
There, despite a $1.3 billion budget shortfall, GOP Gov. Jeb Bush is fighting off a tax hike. A tax cut on stock holdings and investments will likely be postponed, however, which would free up $130 million.
The Sunshine State also has a $940 million rainy-day fund, but, the Journal points out, economists frown on rainy-day funds as quick fixes that leave the underlying imbalance between revenues and expenditures unresolved.
While both Florida houses tentatively agreed Thursday on $800-million in cuts in health care, education and juvenile justice programs, legislative leaders, Republicans all, called each other "immature, irresponsible and inflexible." No, Hawaii is not alone.
Tennessee's budget shortfall is $300 million and Gov. Don Sundquist is considering a special session. Meanwhile, legislators are locked in stalemate over passage of a general income tax and legislative leaders say a session is unlikely.
According to the Memphis Commercial Appeal, "In each of the past three years, lawmakers have rejected Sundquist's tax proposals and have balanced the state's budget using cuts, fudged estimates and one-time money."
Alabama needs $150 million in new revenues by Jan. 1, possibly through corporate income and business privilege taxes.
Since that state already cut education funding last year by 6.2 percent, Gov. Don Siegelman vows to dig in and find ways to raise the money without increasing taxes or cutting education further.
"I thought we could do this without raising taxes," he said. "There are a lot of things that can be done without even thinking about raising taxes. There are some creative solutions out there." We're listening, Don.
In Arizona, Gov. Jane Hull is trying to cut $1.6 billion, or 3.6 percent, out of a two-year $14.5 billion budget. The debate in that state is whether revenues will recover next year or not.
Hull wants to hold the line on taxes and public education. "I can assure you we're not going to backslide on education," she said. "Education has been, is, my top priority as governor."
In Nebraska, public education budget cuts are being discussed, but Gov. Mike Johanns is fending them off. The governor wants to avoid increasing the sales tax or extending it to more goods and services, but the state faces a 4 percent shortfall, $220 million out of a $5.5 billion budget.
Johanns said, public schools must remain a budget priority in weak economic times. He told the Omaha World Herald he came to that realization during a recent school visit. "It occurred to me we had one shot with these kids. We have to get it right the first time."
Although he hopes to spare public schools, he instead proposes to husk the university's outlay by 4 percent, or $38.8 million, an amount the university says would be "devastating."
Connecticut's short-term budget shortfall has zoomed to $302 million, three times earlier estimates. Money for summer classes, teacher training and poorly performing schools is on the chopping block and teachers are worried even bigger cuts are coming.
Gov. John G. Rowland's preliminary proposal would cut nearly $5.6 million from education programs. No "Education Governor" talk from him.
Finally, Iowa's Gov. Tom Vilsack faces a $158 million budget shortfall, but says he wants $200 million in cuts to provide the state with a cushion if the economy worsens. He's proposed a 4.3 percent across-the-board cut and called the legislature into special session to figure out how to fund public safety and other services considered vital since Sept. 11.
By Thursday, Iowa House Republicans and Democrats declared they had agreed to restore $20 million of the governor's cuts. Even so, they will still slash public education funds by $76 million.
Clearly, Hawaii's fiscal problems are different in degree, but not in kind. We are neither unique nor alone.
John Flanagan is the Star-Bulletin's contributing editor.
He can be reached at: jflanagan@starbulletin.com.