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MOODY'S CONFIRMS 'A1' RATING FOR FLORIDA FACILITIES POOL REVENUE REFUNDING BONDS

 NEW YORK, March 2 /PRNewswire/ -- Moody's Investors Service has confirmed the A1' rating assigned to the state of Florida Facilities Pool Revenue Refunding bonds in connection with an offering of $167 million, Series 1992, expected for bids on Wednesday, March 3. This offering was originally scheduled for sale in August 1992 and was rated A1,' however, due to market conditions, the sale was postponed.
 Pledged revenues from a pool of rents on state-owned buildings, subject to annual legislative appropriation for debt service, provide adequate security. The Florida Facilities Pool leasing has been approved by the legislature and there has been a record of appropriation for this pool since 1986. Credit standing of the state of Florida predominates.
 In the last three fiscal years, lower-than-expected economic activity resulted in significant state revenue shortfalls. However, because of timely action, the state has maintained budgetary balance. In the coming years, difficult choices will continue to be posed among spending priorities and tax policies. Future credit evaluation will focus on the state's ability to achieve a balance that adequately funds governmental demands driven by rapid population growth while promoting economic development.
 While Hurricane Andrew devastated parts of southern Florida in August 1992, costing billions of dollars in emergency response, damage, and repair costs, much of that cost will be absorbed by insurance and the federal government, leaving the state to fund a small share of these expenses. State finances were not adversely affected, as evidenced by recent improved revenue collections unrelated to the hurricane. The state is absorbing storm-related expenses within the current budget.
 Florida's consumption tax-based revenues were boosted by the economic activity associated with the post-hurricane rebuilding in southern Florida. Most of these revenues will be returned to affected localities to help pay the costs of replacement and repair of public infrastructure. Improved state revenue collections should enable the state to avoid the mid-year spending reductions of the last three years and to end the year with a strong balance in the Working Capital Fund.
 For fiscal 1994, the proposed budget is based on economic growth of 8 percent and broadening of the sales tax base, producing overall General Revenue Fund growth of 14.2 percent. Last year, a protracted debate over a proposed $1.3 billion in increased taxes and fees caused the governor to veto the legislatively approved budget twice for deleting this funding. Final agreement was reached just prior to the July 1 beginning of fiscal 1993, barely averting a late budget.
 Net tax supported debt: $6,493,965,000.
 -0- 3/2/93
 /CONTACT: George Leung, vice president/managing director, state ratings, 212-553-0342, or Robert Kurtter, assistant vice president, state ratings, 212-553-4453, both of Moody's/


CO: ST: Florida IN: SU: RTG

CK-OS -- NY054 -- 1975 03/02/93 12:57 EST
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Date:Mar 2, 1993
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