The Florida House set the stage for passing its initial $66.5 billion budget Wednesday, one day ahead of "crunch time" -- when it comes up for a vote. It also forwarded measures on trust funds, deregulation and pension reform for state employees, preparing them for a vote on final passage.
This is going to be a busy and important day, said Speaker Dean Cannon, R-Winter Park, as the session began. Cannon laid out the plan for the next two days with both sides agreeing on debate procedure for Thursday.
Rep. Denise Grimsley, R-Sebring, the chair of the Appropriations Committee, took to the floor to defend the budget. Noting the challenging economic times, Grimsley admitted that it was challenging to craft the proposed budget together but insisted it would continue the core functions of government.
This budget is balanced without raising taxes, said Grimsley.
Grimsley managed the various appropriation subcommittee chairmen onto the floor to make brief presentations on their particular parts of the budget and to field questions.
During a lengthy session that kept the representatives in session during the afternoon and into the early evening, the House attempted to position its various appropriation and funding bills for conference with the Senate, passing measures focusing on matters ranging from a back-to-school sales tax holiday. Democratic House Leader Ron Saunders of Key West attempted to amend the measure to make it a 10-day sales tax holiday but the amendment was defeat. The House voted to back the three-day holiday on a 117-1 vote.
The House also rolled a measure sponsored by Rep. Gary Aubuchon, R-Cape Coral, and backed by Gov. Rick Scott that would roll six established trust funds with more than $425 million into the State Economic Enhancement and Development Fund (SEED) which would be in the governors Office of Tourism, Trade and Economic Development.
The House also moved a bill sponsored by Rep. Dorothy Hukill, D-Port Orange, deregulating more than 20 industries. An amendment to remove interior designers from Hukills bill, backed by Saunders, failed on a 41-76 vote. Rep. Charles Van Zant, R-Palatka, one of the leading social conservatives in the House, jumped across party lines to back the amendment, referring to his background as an architect andmaintaining that keeping interior designers regulated would help public safety. Saunders also introduced a series amendment to remove auctioneers, talent agencies, telemarketers, movers, charitable organizations, gyms and agents for athletes from the bill, which also all failed after little debate.
The House Democratic office served notice on Wednesday that their caucus would oppose the budget.
The $66.5 billion proposal is $4 billion less than the current year $70.5 billion budget, noted a memo from the House Democrats released on Wednesday. The plan cuts spending on everything from public schools to affordable housing, road building, beach renourishment. The memo lashed out at the proposed House budget for raiding trust funds, eliminating the Florida Forever program, cutting 5,300 state jobs, hurting the middle class and cutting funds for education. With Democrats controlling 39 of the 120 seats in the House, their opposition is not expected to slow down the proposed budget.
The House also advanced a measure reforming pension plans for state employees, preparing the stage for a vote on the proposal.
Rep. Ritch Workman, R-Melbourne, the chairman of the Community and Military Affairs Subcommittee and the sponsor of the legislation, took to the House floor to take questions on his proposal, which mandates that state employees place 3 percent of their salaries into the Florida Retirement System (FRS).
During a meeting of the Appropriations Committee last week, Saunders insisted that Workmans bill -- which requires a smaller contribution than the initial proposal that called for 5 percent -- was a tax. Saunders took up that line of attack on Wednesday.
The bill refers to a contribution by employees, said Saunders, who asked if it was a mandatory contribution.
It sounds like this is 3 percent of income, insisted Saunders. How is this not an income tax?
This is certainly not a tax, fired back Workman, who called it an immediate benefit.
Facing questions from a string of Democratic members, Workman noted that the state faced an almost $4.8 billion shortfall and that the measure was needed to help overcome it.
Besides requiring the 3 percent contribution, Workmans bill would also terminate the state Deferred Retirement Option Program (DROP) for new workers and would raise the retirement age from 62 to 65.
The state can no longer afford to pay 100 percent of the retirement system for all our state employees, insisted Workman.
The two sides in the House will cross lances on Thursday. They have agreed to spend up to three hours, with 90 minutes for each side, to debate the budget proposal. They will also spend 25 minutes each on Workmans pension proposal as well as take up Hukills deregulation measure.
The House also passed two incentives backed by Rep. Steve Crisafulli, R-Merritt Island, which create corporate income tax credits for businesses in the space industry for 2015 through 2017.
The strength of the space industry is critically important to Floridas economy, said Crisafulli. HB 873 will make Florida more competitive in attracting space-related business ventures, which will help provide job opportunities to our highly-skilled space work force after the space shuttle retires.
Florida is no longer the national leader in space-related incentives, added Crisafulli. Other states are passing us by, so the Legislature must take action to attract more space businesses. Ninety-seven percent of the space-related market opportunity is located outside of Florida it is ours to capture, and this bill will help us do just that.
Reach Kevin Derby at kderby@sunshinestatenews.com or at (850) 727-0859.
