Don Gaetz: Senate Budget Cautious Due to 'Instability in Washington'

The Florida Senate released its annual budget proposal for fiscal year 2013-2014 on Friday, putting $2.9 billion in reserves.

The Senate budget demonstrates our commitment to fiscally responsible planning for the future by prioritizing investments in education and economic development, said Senate President Don Gaetz, R-Niceville. Our budget recognizes the ongoing challenges associated with economic recovery as well as the uncertainty caused by instability in Washington. Floridas fiscal situation is improving, but the tough times over the last few years taught us many lessons. Instead of spending all we have, weve made targeted investments, weve planned ahead, and weve remained cautious by setting aside more than $2.9 billion in reserves.

The Senate budget ups K-12 school funding by $1.2 billion and includes nearly half a billion dollars for performance-based teacher pay raises. The budget also provides $300 million to universities as well as $30 million for university research.

Gaetz was not the only official who took the opportunity of the budget roll-out to slam the Obama administration and Congress for their reckless spending and lack of a balanced budget.

Unlike the federal government, here in Florida we have a constitutional responsibility to pass a balanced budget and to live within our means, said Sen. Joe Negron, chairman of the Senate Committee on Appropriations.

Through targeted investments in Floridas future, weve addressed some of the areas hardest hit over the last several years, including funding needed to shore up our states retirement system, repaying the Lawton Chiles Endowment and the Budget Stabilization Fund, and then going beyond these basic obligations to address the needs of teachers, state employees, law enforcement, and court employees who have stayed committed to public service, even in the toughest of times, continued the Stuart Republican.

The Senate budget puts $577.4 million toward completely funding the 2013-14 required unfunded actuarial liability (UAL) contribution for the Florida Retirement System.

The full budget is detailed below.

Total Budget: $74.3 billion ($26.9 billion GR; $47.4 billion TF)

Total Reserves: $2.9 Billion

• $1.5 billion Working Capital

• $214.5 million Budget Stabilization Transfer (Fiscal Year 2013-2014 transfer)

• $708.3 million Budget Stabilization Fund (Est. 6/30/13 balance based on anticipated transfers)

• $499.3 million Lawton Chiles Endowment Fund (Est. 6/30/13 balance)

Total Reserves as a Percentage of General Revenue: 10.1 percent

Statewide Issues

State Employee Compensation and Benefits
Total: $256.2 million ($160.1 million GR; $96.1 million TF)

• State Employee 3 percent Pay Increase $155.5 million GR; 87.7 million TF

• State Law Enforcement Tiered Pay Increase $2 million GR; 7.7 million TF

• Court System Pay Increase $2.5 million GR; 771K TF

State Employee Health Insurance
Total: $117.5 million ($77.8 million GR; $39.7 million TF)

• Employer Premium Increase - $50.7 million GR; 24.2 million TF

• Provide Health Insurance for Certain OPS Employees $27.1 million GR; $15.5 million TF

Florida Retirement System
Total: $214.6 million ($123.4 million GR; $91.2 million TF)

• Increase to FRS Normal Costs $255,000 GR; $255,000 TF

• Unfunded Actuarial Liability $101.8 million GR; $80.2 million TF

• Increase to Health Insurance Subsidy Contribution $21.4 million GR; $10.7 million TF

Education

Public Schools/K12 FEFP $1.2 billion Increase (State and Local)
o Instructional Personnel Salary Increase $480 million
o Enrollment Workload Increase $123.9 million
o Additional Funds for Florida Retirement System Adjustments $296.9 million GR
o Education Technology Modernization Initiative $75 million
o High School Industry Certifications additional $30 million
o Discretionary Millage Compression Adjustment additional $30 million
o Teachers Lead Program additional $14 million $250 per teacher for supplies

Florida College System
o Equalization Funding - $33 million GR
o Florida Retirement System Adjustments $27.7 million GR
o Developmental Education $18 million GR
o Performance Funding for Industry Certifications $7 million GR

State University System
o Return Universities to Prior Year Funding Levels -- $300 million
o Florida Retirement System Adjustments -- $71.9 million GR
o Performance Funding for High Demand Programs -- $45 million GR
o University Research Pre-eminence -- $30 million GR

Other Education
o Florida Resident Access Grant -- Workload Increase and Student Award Level
Increase for Legacy Institutions -- additional $10.7 million
o Bright Futures -- Student Award Level Increase (10percent) -- additional $30 million TF

Health and Human Services

• Medicaid Primary Care Physician Rates $677.7 million TF

• Medicaid Cost to Continue -- $966.2 million ($32.8 million GR; $933.2 million)

• Health Insurance Tax on Managed Care Rates $39.7 ($16.4 million GR; $23.3 million TF)

• Restore Mental Health and Substance Abuse Treatment Funding $23.1 million GR

• Restore Maintenance Adoption Subsidies Funding $20.6 million ($20.2 million GR; $0.4 million TF)

• Serve Additional Clients through the Home/Community Based Services Waiver $36 million ($15 million GR; $21 million TF)

• Serve Additional Clients in Nursing Home Diversion Program $5.6 million ($2.3 million GR; $3.3 million TF)

Criminal and Civil Justice

Criminal Justice Estimating Conference Inmate Increase $11 million GR

• Department of Corrections Operations Deficit

o FY 12-13 33.3 million NR GR
o FY 13-14 36.9 million recurring GR

• Electronic Monitoring for work release inmates $7.6 million GR

• Fund Department of Corrections salary lapse within the prisons $12.5 million GR

• Fund Courts Post-adjudicatory drug courts $5.8 million GR

• Guardian Ad Litem Volunteer Model $5.4 million

• Clerks of the Court Operations Deficit $31.7 million

• Department of Juvenile Justice Prevention and Intervention Programs $3 million GR

• Supreme Court Roof Repairs $4.86 million NR GR

• Childrens Advocacy Centers $3.5 million GR

Transportation, Tourism and Economic Development

• Florida Armory Revitalization Program (FARP) $15 million GR

• State Aid to Library Grants $21.3 million GR (recurring funds)

• Cultural and Museum Grants $5 million GR

• Historic Preservation Small Matching Grants $1.4 million GR

• Grants and Aids Transportation Disadvantaged $50.9 million TF

• Transportation Final Tentative Work Program $8.5 billion TF

• Seaports Development Grants $241 million TF

• Economic Development Partners $87.45 million

• Enterprise Florida $18.95 million

• VISIT FLORIDA $52.5 million

• Space Florida $13.5 million

• Economic Development Tools Flexible Funding $20 million TF

• Economic Development Programs and Projects $21.57 million

General Government

• Citrus Research and Budwood Program $7.5 million GR

• Everglades Restoration $70 million TF (includes $32 million in SB 768)

• Land Acquisition for Military Buffers and Surplus Land Proceeds $60 million TF

• Drinking Water and Wastewater Revolving Loan Programs $12.5 million GR and $203.2 million TF

• State Parks Maintenance and Repairs $20.8 million TF

• Fiscally Constrained Counties $24 million GR