The Crist administration continues to base its budgetplan on unsecured funding sources -- in particular, $1 billion from Medicaid, which has not received final congressional approval, and $250 million from a proposed pact with the Seminole tribe.
Director Jerry McDaniel of the Office of Policy and Budget addressed House Democrats on Gov. Charlie Crists proposed budget Wednesday, sayinghe was optimistic these measures would soon be finalized.
Crists budget relies on $3.5 billion in federal stimulus funding.It allocates$3.3 billion of the federal funds for education and health and human services.
There may be more coming from Washington. Noting that both the U.S. House and the Senate have passed variations of the measure, McDaniel said he was confident that the Medicaid money would be heading to Florida soon.
We believe this funding will come about when the House and the Senate start conferring, he said. It should be done before the current month is out and it could be as early as next week.
When asked if the Medicaid money would all be used to cover health and human service expenses as requested by Sen. Durrell Peaden, R-Crestview, and the Democratic leaders in the House and the Senate, McDaniel said that it would go to the general revenue, freeing up other monies.
McDaniel also said that Crists proposed budget relies on unsecured funds from the proposed Seminole gaming compact. He said the Seminoles pay $12.5 million into the fund each month. At the end of March, the Seminoles will have paid a total of $250 million into the fund.
When asked what would happen if, like last year, the Legislature fails to reach an agreement with the Seminoles, McDaniel said there were a number of possibilities. He suggested the Seminoles might ask for the funds to be returned; or, they could remain where they are and just roll over.
He also said, It could be mandated that those monies are the state of Floridas. It could lead to friction.
Democratic House members said they preferred Crist's proposal to either version in the House or Senate. Rep. Alan Williams, D-Tallahassee, said, The governors budget is a formidable one.
Rep. Betty Reed, D-Tampa, said, ... better than the other ones out there. I hope were able to implement this budget.
Crists budget remains at odds with the proposals coming out of the both chambers on a number of issues such as including Medicaid and the Seminole pact monies, environmental measures and health funding.
The Crist administration is not pleased with the Legislature's proposals in various areas. We are concerned about health and human services cuts, McDaniel said. The governors main focus is job development and economic development the House has a lesser work plan when it comes to transportation.
Asked about the Legislatures plan to continue notfunding Florida Forever, which Crist listed as one of his Guiding Principles for the budget, McDaniel said, Its premature to articulate any strong concerns.
The governor retains the line-item veto as one of his chief negotiating tools for the budget. Asked if the Crist administration is already compiling a list of items to veto, McDaniel said, Its much too early to construct something like that.
While this will be Crists last budget, McDaniel warned that the next governor and House and Senate leadership will face an even rougher task. He said, The 2011-12 budget will be extremely challengingbecause the stimulus money will be gone.
Kevin Derby can be reached at kderby@sunshinestatenews.com.
