The House has upped its call to complete the budget, without the need for a mid-session spring break, in the regular 60-day session.
But the prodding isn't expected to change the pace of the Senate's budget deliberations.
House Speaker Dean Cannon on Thursday posted a budget allocation package for the next fiscal year that matches Gov. Rick Scotts call for at least $1 billion in additional funding for education while challenging the Senate to confront a tough budget within the scheduled timeline.
We have funded K-12 with an allocation exceeding $1 billion in new state funding to the Florida Education Finance Program, Cannon stated in a release. This addresses all of the shortfalls in K-12 education and also provides an increase in per-student funding of 2.27 percent.
Following the release of the budget package, House Appropriations Chairwoman Denise Grimsley, R-Sebring, issued her own release to underscore the need for the session to end on time.
Taking into account some concerns expressed surrounding the recent revenue estimate, we also incorporated mechanisms that will provide for automatic contingencies in the event of future revenue losses or increases, Grimsley stated. With these triggers in place, and one of the most steady revenue estimates in recent years as our guide, we can account for any potential fluctuation without accessing the $1 billion set aside in reserves.
The funding plan being released in the second week of the session comes as Senate leaders have considered slowing the process to allow state economists more time to make revenue projections closer to the start of the next fiscal year, July 1.
The office of Senate President Mike Haridopolos, R-Merritt Island, stated that the "Senate will continue to work on the budget in a methodical and thoughtful manner."
In December, Scott called for an additional $1 billion in public school funding as part of his proposed $66.4 billion budget for the next fiscal year. He proposed the money come from changing the way hospitals arereimbursed for providing care under Medicaid.
Scott, who since releasing his proposed budget has said he won't sign a final fiscal plan that fails to include a substantial increase for education, praised the House package.
Im confident the Legislature will continue to come closer to some of the other recommendations I made in my budget in the weeks ahead, Scott stated in a release.
However, the House plan doesn't fully follow Scott's outline.
Instead of cutting Medicaid, Cannon calls for using $211 million from transportation and economic development trust funds, as well as setting aside $100 million, predominantly in recurring funds, to help lower taxes and to place another $1 billion into rainy day reserves.
Cannon added that even though the Legislature is once again being challenged to craft a budget starting with a shortfall that exceeds $1 billion, we have a proven track record of responsible budgeting, and our states fiscal situation is improved from recent years.
The appropriations subcommittees will use the allocations to finalize budget recommendations as they prepare to release budget proposals next week, Grimsley noted. The House should get the budget the following week, she added.
There are many difficult decisions ahead, but those decisions should not be delayed with the hope that additional revenue will make tough choices easier, she stated. Floridas families dont have the luxury of delaying challenging financial choices and neither should government.
Cannon also addressed the possibility that the Senate may seek to impose a break in the regular 60-day session by noting that the House plan includes unspecified automatic contingencies in case revenue comes in far below projections.
These contingencies will provide self-executing direction on how to enact reductions or provide additional spending authority, without accessing reserves, should circumstances change, Cannon noted.
Cannon added the following comments as "strategies and principles for the budget:
1. The House budget will prioritize the delivery of services to people (education, health care and public safety) over the purchase of things (transportation, general government and the environment).
2. The House budget will prioritize critical needs and develop realistic, achievable options to balance our budget. The subcommittee chairs are encouraged to consider new cost-savings strategies, but they should not budget savings from programmatic changes unless there is certainty those savings can be achieved.
3. The House budget will not raise taxes or fees. In the area of higher education, adjustments to tuition or fees are permitted only when participation in the underlying program is voluntary and the fees reflect a sharing of the actual cost of the program. In order to foster economic recovery, the House includes an allocation to the Finance and Tax Committee for tax relief.
4. The House budget will prioritize K-12 education. This subcommittee will receive the greatest percentage of the general revenue allocation as well as the greatest increase in funding.
5. The House budget will not adopt strategies to control Medicaid spending that result in cost shifts toward the other aspects of our state-funded health care infrastructure, including driving uncompensated care into our public hospitals and emergency departments. The House will continue to work toward a simplified hospital funding model, consistent with the Florida Medicaid reform enacted into law last year, recognizing that this effort will require more time-consuming, meticulous work and the investment of stakeholders.
6. The House budget will not revise adult sentencing policies, change inmate release schedules, or take any action that jeopardizes the long-term safety of the public to save money in the current fiscal year.
7. The House budget will provide sufficient reserves to weather fiscal forecast fluctuations and preserve our bond ratings. Unallocated general revenue, the budget stabilization fund, and the Lawton Chiles Endowment Fund should provide a total budget reserve that exceeds $2.46 billion.
Reach Jim Turner at jturner@sunshinestatenews.com or at (772) 215-9889.
