TALLAHASSEE -- Breaking a pledge against raising taxes, Gov. Charlie Crist signed Florida's $66.5 billion budget into law Wednesday and barely used his veto pen.

Crist vetoed only two items in the massive budget: a small pay cut for some state workers, and a measure to take $6 million from a trust fund that processes concealed weapons permits.

Those items aside, Crist said, the budget was the best it could be, considering the times. Lawmakers faced an unprecedented budget deficit in a state racked with record job loss and home foreclosures.

''The revenue estimates of last fall and this spring were disheartening to say the least and many predicted dark days for this state,'' Crist said. ``Today, I'm happy to say that the budget that I will sign is not nearly as dismal as they expected it to be.''

Crist boasted that the budget slightly increases K-12 spending by $26 per student, keeps critical services like Medicaid afloat and includes more money for the Everglades, to help recruit high-wage businesses and to promote and advertise the state.

Crist also noted the budget shows the state has ``no plans to release inmates from prison, no drastic measure to lay off hard-working state employees.''

Still, up to 700 state workers could lose their jobs. Some state law enforcement regional offices are slated for closure.

Also, the budget includes $2.2 billion in new fees and taxes. Much of the new revenue comes from a $1-a-pack cigarette tax and higher fees on driving licenses and motor vehicle tags. Those who use the court system, visit state parks and even those who fish from beaches and bridges will pay more in fees.

The cigarette tax and most of the fees go into effect July 1 with the budget.

Crist, who had repeatedly promised not to raise taxes, said Wednesday that the budget does not include ''broad-based tax increases'' -- even though fees for the 15.6 million Florida driver's licenses and 18.8 million registered vehicles will rise.

Democrats, particularly in the House, assailed the tax hikes. They said Republicans did too little to close tax loopholes and made too many cuts to programs helping seniors and foster kids.

''This budget was balanced on the backs of the middle class, the working men and women of our state,'' said Rep. Martin Kiar, D-Davie.

GAMBLING FUNDS

Democrats said Republican legislators should have plowed about $400 million in new gambling money into the budget, rather than putting the cash into savings. The extra money also could have been used to lessen the blow of increased state-university tuition costs.

Democrats crowed that next year's budget will be propped up with $5.3 billion in federal stimulus money made available by a Democratic Congress and president. Without it, the state's $6 billion budget hole would have been far harder to fill. The current year budget is $69.5 billion, including $4 billion in stimulus money.

Crist and Republican legislators acknowledged that the federal money was a must. But they said they needed to raise other revenues, trim about $1 billion in spending and beef up savings to $1.7 billion to protect the state's bond rating and ensure there's enough cash in the bank if times toughen.

Senate President Jeff Atwater, a North Palm Beach Republican, said lawmakers will have to come back at a special lawmaking session in the coming months to ratify a gambling agreement with the Seminole Tribe of Florida. He also said the state could still run out of money, necessitating a special session.

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