Legislative leaders dont expect massive last-minute budget chaos to ensue from a disputed court ruling that could require refunding government workers 3 percent of their pay, with interest, that has been collected for their pension plans over the past eight months.
The state appealed the ruling Tuesday by Circuit Judge Jackie Fulford that the Legislature and Gov. Rick Scott failed to follow the state Constitution when requiring workers last year to start paying 3 percent of their salary into the Florida Retirement System.
But with a $70 billion budget for the next fiscal year now in its 72-hour cooling-off period before a final vote on Friday, legislative leaders say they dont expect theyll have to make drastic changes to the financial plan.
"I think more so it validates the wisdom of always having $1 billion in reserve," House Speaker Dean Cannon told reporters following the ruling.
Thats the position the House has long insisted upon in our budget negotiations. Its the type of thing that just preserves the states credit rating, bond rating with the agencies.I think it just shows being prudent of being conservative in our budgeting policy.
Fulford's ruling that the state requirement that all employees -- regardless of when hired -- pay 3 percent of their salary was unconstitutional could mean a refund, with interest, to the more than 655,000 state and local government workers who pay into the system.
Senate President Mike Haridopolos, R-Merritt Island, said there may be a little chaos as he called Fulfords decision political.
Were still going to move forward; we expect our budget to be held up in court through the appeals process and were going to move forward, Haridopolos told reporters after the Senate floor session Wednesday.
Attorneys for the governors office, representing Scott, Attorney General Pam Bondi and Chief Financial Officer Jeff Atwater, serving as the State Board of Administration, and Secretary of the Department of Management Services John Miles, quickly filed an appeal with the 1st District Court of Appeal.
As part of the appeal, the state is asking that the court order to be stayed on the refund.
A spokeswoman for the governors office said the appeal will go through the standard process of where it was filed.
No court date has been set for oral arguments.
The Florida Education Association, which filed the lawsuit with a number of public-employee unions, contends legislators violated the state Constitution, which required contract changes to be negotiated through collective bargaining.
The union didnt argue against the state requiring employees hired after July 1, 2011, when the law went into effect, to pay into the Florida Retirement System.
In her ruling, Fulford stated that she was interpreting the law.
To find otherwise would mean that a contract with our state government has no meaning, she stated.
Reach Jim Turner at jturner@sunshinestatenews.com or at (772) 215-9889.
