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STATE BUDGET

Budget crisis getting worse, Florida lawmakers are told

Lawmakers returned to Tallahassee to cut the state budget and close the deficit but were greeted with more bad financial news.

Herald/Times Tallahassee Bureau

''This is a preamble to what is to come in the regular session,'' said Sen. Mike Fasano, R-New Port Richey. The regular legislative session that begins in March is likely to include another round of trims, perhaps as large as $4 billion, to balance the coming year's spending plan.

Off the table: consideration of any cigarette or alcohol tax, finalizing the gambling compact with the Seminole Tribe, and closing tax loopholes.

''It's a huge mistake,'' said Rep. Jim Waldman, a Coconut Creek Democrat. ``They're not putting all the options on the table.''

Lawmakers and Crist have been expecting the budget cuts since the downturn in the economy six months ago, when they asked state agencies to hold back four percent of their budgets. When the budget gap widened, lawmakers called the two-week special session to decide which cuts will be permanent, which will deepen, and which areas will be shielded.

Among the cuts legislators plan to implement between now and June 30:

• Schools will face a $492 million cut, including reducing Miami-Dade's cost of living adjustments by $450,000 under the House plan and $1.9 million in the Senate plan.

• Pre-kindergarten teachers could be laid off as classrooms are consolidated for the remainder of the year to allow a maximum of 12 students per class instead of 10. Summer pre-kindergarten classes will be scaled back. The savings to the state: $4.8 million.

• Teachers who get extra training and achieve national certification will get an 8 percent salary bonus, instead of 10 percent. Savings to the state: $10 million.

• School districts will receive less money for school books, transportation and special education.

• Crist's initiatives to provide subsidies to new companies and the $5 million program to provide incentives to the motion picture and television industry will end.

• The Florida prison system will lose up to 594 jobs.

• And a proposed $9.8 million cut in child protection could also jeopardize as much as $41.5 million in matching federal funding next year, DCF officials said.

To offset potential job losses from the budget cuts, lawmakers are poised to set up a $8.5 million loan program to small businesses that create jobs.

The maximum loan would be $250,000.

Herald/Times staff writer Steve Bousquet contributed to this report. Mary Ellen Klas can be reached at meklas@MiamiHerald.com

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