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Sink Objects to Trust Fund Raid

When Governor Charlie Crist unveiled his proposed $70 billion state budget for fiscal year 2007-2008, he followed other governors' leads to identify state trust funds with large balances and

By Michael H. Adams | Updated on February 29, 2008

When Governor Charlie Crist unveiled his proposed $70 billion state budget for fiscal year 2007-2008, he followed other governors’ leads to identify state trust funds with large balances and recommend appropriating some of the money to help fund other projects. Typically, the state has trust funds in place for regulated industries so that the industry pays the state’s costs for implementing and enforcing the rules and laws applicable to that sector. For example, insurers pay an assessment into the Insurance Regulatory Trust Fund that pays for various activities of the Department of Financial Services and the Office of Insurance Regulation.

Traditionally, the legislature has steered around raiding trust funds to pay for projects that would otherwise be funded through the general revenue fund, which is mostly derived through sales tax dollars. Even so, Crist is asking the legislature to appropriate $129.5 million from the Workers’ Compensation Administrative Trust Fund (WCATF) to help underwrite other state activities. The move is part of Crist’s budget plan to put more money towards furthering economic development and expanding the resources for providing health care. Chief Financial Officer Alex Sink, however, is objecting to Crist’s move, saying it could eventually lead to higher costs on employers.

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