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Politics

Scott, Cabinet Look at Agency Mergers to Cut Costs

January 18, 2011 - 6:00pm

Gov. Rick Scott met formally with his Cabinet for the first time Wednesday, and all members appear intent on finding ways to cut spending by merging, consolidating or eliminating programs or agencies in their departments.

Scotts transition team advisers recommended consolidating the state departments of community affairs, transportation and environmental protection, as well as merging the Department of Health with the Agency for Health Care Administration under a new Department of Health and Human Services.

Scott backed off the consolidation of DCA, DOT and DEP Wednesday, but a bill has been filed in the House by Rep. Janet Adkins, R-Fernandina Beach, to create the HHS, which would include the Department of Children and Families and the Agency for Persons with Disabilities as well as DOH and AHCA.

I have no proposal right now to merge those agencies, Scott said of a possible DCA-DOT-DEP merger.

His Cabinet members, however, could end up doing the agency cost-cutting work for him. Attorney General Pam Bondi said Wednesday she would look at merging offices across the state, and Chief Financial Officer Jeff Atwater said he would be reviewing all of his programs for possible consolidations or eliminations.

Hopefully well be consolidating some offices and doing the best we can, Bondi said.

Were going to go through each one of our programs and see which ones should stay or go or which ones should be merged or consolidated, Atwater said.

Atwater, however, defended two of the agencies under his control -- the Office of Insurance Regulation and the Office of Financial Regulation -- and indicated that revolutionary changes are not likely to fall on them.

I dont foresee significant changes in the way the OIR is managed, Atwater said. He also defended the OFR as an essential state tool for overseeing state-chartered banks, and said that eliminating it would hand the job over to federal agencies.

One of Scotts ideas for an agency merger, though, got some push back Wednesday from Agriculture Commissioner Adam Putnam. Putnam said that merging the Department of Citrus with his Department of Agriculture and Consumer Services would not be a moneysaver.

Theres not a penny of general revenue that supports the Department of Citrus, so you dont save any money by eliminating it, Putnam said.

As a candidate, Scott consistently cited excessive spending in the state government, and now the former health-care executive is eager to streamline government agencies and run Florida like a business. Scott also wants to cut the state work force by 5 percent and called recent state budgets bloated.

Atwater, who served as Senate president the past two years, rebuffed that criticism Wednesday, but maintained that he was respectful of Scotts perspective as an outsider.

I think what Ive done historically was responsible. We put a good budget together for the people of Florida, Atwater said.

The current Senate president, Mike Haridopolos, R-Merritt Island, said Wednesday he is open to Scotts ideas for cutting corporate and property taxes, but is focused on finding $3.62 billion worth of spending cuts to eliminate the state deficit, not necessarily on finding tax cuts.

First things first. The first priority I have as president of the Senate is to reduce spending by $3.62 billion. Then look at tax relief, Haridopolos said.

For his part, Scott insisted he could find enough spending to cut from the budget to pay for his tax cuts.

Im going to put out a budget that shows (the Legislature) how to do it, Scott said.

Hes also confident his proposal will be received favorably by lawmakers.

I also believe my budget proposal is going to pass, Scott said.

Reach Gray Rohrer at grohrer@sunshinestatenews.com or at (850) 727-0859.

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