Florida's Scott Sends Shockwaves With $5B In Budget Cuts

Florida's tea party-backed Gov. Rick Scott proposed cutting more than $5 billion from state spending Monday while also slashing taxes as he laid out his first budget proposal aimed at closing a deficit of nearly $4 billion.

The Republican, a former healthcare executive, proposed saving nearly $4 billion over two years by reforming Medicaid, the health insurance program for poor people.

He also saw savings of $2.8 billion over two years through an overhaul of Florida's relatively healthy state pension system. Scott also proposed cutting taxes by more than $4 billion over two years. This would include a roll-back of corporate income taxes from 5 percent to 3.5 percent and reductions in property taxes.

Seeking to remain true to the tea party movement that advocates smaller government, Scott unveiled his budget to about 1,000 tea party activists in Eustis, about 200 miles outside the state capital, Tallahassee, where the state legislature will have to approve his proposed budget.

The event took on a carnival atmosphere as hawkers sold T-shirts, buttons and hats with themes such as "Don't Tread on Me" and "Friends Don't Let Friends Vote Democrat."

Scott said he can squeeze $600 million from reviewing and renegotiating contracts while trimming $400 million by shifting more Medicaid patients to managed care and $500 million by making changes to juvenile justice and state prison programs.

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