Charlie Crist has apparently decided the only way to balance the budget budget is to return, once again, to raiding the state’s trust funds. The Lawton Chiles Endowment is in his crosshairs again:
Gov. Charlie Crist and Republican legislative leaders are back at the well, planning to draw $700 million from the Lawton Chiles Endowment over the heated objections of the late governor’s heirs.
While Crist and lawmakers argue that the move is necessary to fix a $2.4 billion budget shortfall, nobody can say how much it will cost the state in the long run.
Critics warn that if the state goes ahead with plans to take the payout in June, it would amount to a fire sale, locking in hundreds of millions of dollars in losses the fund suffered in the recent stock market crash. The problem, “unrealized losses,” should be familiar to any homeowner who has been forced to sell when market conditions say the house is worth less than when it was bought.