Florida lawmakers earlier this month slashed billions in state spending, but most of those cuts won't take effect until later this year. Meantime, sales-tax collections continue to come in lower than initially predicted -- falling off by roughly $150 million for the months of March and April.
The steep drop-off puts the state at risk of running into the red because state lawmakers left just $322 million in the state's main bank account to absorb any shortfalls for the rest of the fiscal year that ends June 30.
State legislators, however, gave Crist the power to take money from two state reserves that total more than $3 billion to cover any deficit for the current budget year, or for the new fiscal year that starts on July 1.
Crist said that ''it's clearly possible'' that he would be forced to go into reserves in the next few weeks.
Crist must ask a panel of legislators, known as the Legislative Budget Commission, to formally approve any request to use the money.
''I'd rather not predict it until the numbers come out,'' Crist said Monday.
Lawmakers approved a nearly $72 billion budget a year ago, but the souring economy forced them to cut roughly $1.5 billion in October and early March. The GOP-controlled Legislature in May passed a $66.2 billion budget to cover all state spending from July 2008 until June 2009.
But the cuts may not be enough to keep Florida's budget balanced. Amy Baker, the coordinator for the state's Office of Economic and Demographic Research, said that the state's economy continues to struggle, and that recent increases in tourist visits weren't enough to offset sagging revenue collections in other areas.
Republican leaders resisted calls from Democratic lawmakers earlier this year to use existing reserves to balance the budget. GOP lawmakers, however, did a turnabout and decided to give Crist the power to tap into the two reserves if tax collections continued to sag.
This means that the entire Legislature will not have to hold a special session to balance the budget during a crucial election season.
Miami Herald staff writer Mary Ellen Klas contributed to this report.
