The Florida Senate passed a $69.8 billion budget Thursday, $700 million less than the current budget, and $3.3 billion more than the House budget, but the numbers hide what some say are budget tricks.
Floridas five water management districts and its clerks of court system are left off the books in the House budget, since they levy tax dollars independently of the Legislature, but are kept in the Senate budget.
Proponents of the Senate approach tout the transparency involved in keeping those items in the budget, and note that the upper chamber also calls for greater oversight of the water management districts, requiring legislative approval of their budgets and lowering their current millage rates, saving taxpayers $210.5 million in property taxes.
The vote came down 33-6, with half of the Democratic caucus voting against the budget. The unanimous support for the bill from Republicans and the smattering of support from Democrats notwithstanding, some senators voting for the bill said they would not approve it in its current form for a final vote.
"I'm going to support the budget today because this is the first step. If this was the final budget, I'd probably vote no," said Sen. Chris Smith, D-Fort Lauderdale.
Other Democrats, and even one Republican, raised the idea of finding tax loopholes or other sources of revenue to find the money needed to fund programs and projects they think are hit too harshly in the budget. Senate President Mike Haridopolos has repeatedly stated there would be no tax increases in the budget.
"There are some significant revenue sources that we can provide greater funding," said Sen. Thad Altman, R-Viera, adding that closing corporate tax loopholes and adding funding for Medicaid could draw down more federal money for the program.
But most Republicans held the line on tax increases.
"If we do not adopt this budget today, the only alternative is a tax increase. If you believe that there are areas that are being cut that shouldn't be cut, then offer a tax increase to offset that," said Sen. Don Gaetz, R-Niceville.
The House and Senate budgets are also at odds over reductions in state-worker pensions.
The House version calls for a 3 percent flat rate contribution from the 655,000 members of the Florida Retirement System. Workers would contribute 2 percent of their salary up to $25,000 in the Senate version, after amendments were added Wednesday, rising to 4 percent up to $50,000, and 6 percent over $50,000.
Senators in the Governmental Oversight and Accountability Committee, chaired by Sen. Jeremy Ring, D-Margate, worked out a bill last month that adopted a similar tiered system and gained grudging support from union members. That bill was scrapped in favor of an appropriations bill from Budget Chairman Sen. J.D. Alexander, R-Lakes, that originally included a 3 percent flat contribution rate like the House. Most senators were relieved at the changes in the pensions appropriations bill and are hopeful they will remain after negotiations with the House.
"I know this is the last thing Senator Alexander wants to do, but I also know it's the responsible thing to do," said Ring, who also voted for the overall budget.
Democrats who voted against the budget, however, still had problems with the cuts to state-worker pensions, and echoed the common refrain from those who think pension reforms go too far.
"I really think that this is balanced on the backs of our workers, our public employees," said Senate Minority Leader Nan Rich, D-Weston.
Sen. Gaetz added an amendment that requires legislators and statewide elected officials to contribute 1 percent more than other workers at each contribution level tier. For instance, lawmakers would put 3 percent of their salary toward their pension up to $25,000, 5 percent up to $50,000, and 7 percent for $50,000 and above. Gaetz offered the tiered approach after a measure calling for a flat 7 percent contribution rate from elected officials was rejected Wednesday. Other senators appreciated his calling on elected leaders to pay more than they are requiring from other state workers.
"I agree with a lot of what he says, that we need to lead the way on the issue," said Sen. Jack Latvala, R-Clearwater.
Cuts to education and Medicaid also troubled those who voted against the budget. Per student funding in PreK-12 was cut by $423, but Sen. David Simmons, R-Maitland, who chairs the PreK-12 Education Appropriations Committee, noted that most of the cuts were due to the evaporation of federal stimulus funds. He said state spending on education remained virtually the same.
"We basically have a level funding for PreK through 12," Simmons said Wednesday.
The state's Medicaid program, which at $20 billion takes up nearly 30 percent of the current budget, was cut by $1 billion in the Senate budget. Most of the cuts fell on the Medically Needy program, which also got a name change -- the Medicaid NonPoverty Medical Subsidy. Sen. Joe Negron, R-Stuart, who chairs the Health and Human Services Appropriations Subcommittee, explained the new label was needed because it appropriately names the program, which provides medical services to people who would not otherwise qualify for Medicaid, but whose medical expenses drive them into financial distress.
"We should call it what it is, which is a subsidy for people who do not qualify for Medicaid," Negron said during budget talks Wednesday.
Conference budget negotiations with the House to reconcile the two budgets will begin next week.
Reach Gray Rohrer at grohrer@sunshinestatenews.com or at (850) 727-0859.
