With a month left in the regular session, the Florida House approved a $69.2 billion budget Thursday that increases Pre-K-12 education by 9.5 percent while bumping up college tuition and reducing hospital payments.
Expect there to be serious conference negotiations ahead as the Senate continues to hammer out its financial plan for the 2012-2013 fiscal year.
House Speaker Dean Cannon, R-Winter Park, called the fiscal plan a prudent approach to funding essential government functions, including education, transportation infrastructure, public safety and economic development.
The House budget consists of revenue funds totaling $24.3 billion, state trust funds totaling $20.4 billion and federal funds totaling $24.5 billion. Additionally, the budget increases the commitment to Pre-K-12 education funding by more than $1 billion. The budget also sets aside more than $2.46 billion in reserves.
House Democrats, in voting against the fiscal package, were quick to issue a statement declaring the budget fails to adequately address the needs of the people of Florida.
"I recognize that this is a very difficult budget. I am voting 'no' because I don't like the 8 percent tuition hikes included in this budget, House Democratic Leader Ron Saunders, D-Key West, stated in a release.
I think the tuition hike imposes a tax on the middle class. I also don't like the cuts to vital health-care programs in this budget. We are losing valuable federal funds by these cuts.
Republicans seized on the "no" votes as a chance to head off expected Democratic attacks in the fall.
I applaud House Republicans for their prioritization of education in Florida and their willingness to increase education funding by $1.1 billion. It is unfortunate that our Democratic colleagues have put political posturing ahead of our states youth, stated Majority Leader Carlos Lopez-Cantera, R-Miami.
Last session we made difficult choices that have produced positive results. We were condemned by the House Democrats for making cuts and criticized for our stance against raising taxes, but independent financial groups have affirmed the budget and policy choices we made last session. Those choices were directly responsible for upgrading Florida to a stable AAA bond rating, resulting in lower interest rates, potentially saving our taxpayers hundreds of millions of dollars and instilling confidence in the job market. Weve also seen our unemployment rate drop more than 2 points."
House Appropriations Chairwoman Denise Grimsley, R-Sebring, also praised the budget process.
Like Floridas families, the Florida House has had to make tough choices that prioritize the critical needs of our state, she said. I appreciate the House of Representatives for recognizing the need to pass a fiscally responsible budget that does not increase the burden on taxpayers and helps Floridas private-sector job creators continue to turn Floridas economy around.
Included in the 2012-13 General Appropriations Act:
PRE-K-12 EDUCATION
The proposed budget totals $12.7 billion which is a $1.1 billion (9.5 percent) increase over the base budget for fiscal year 2011-2012.
Per-student funding increase --$6,366.22, or $141.30 (2.27 percent).
School recognition increase --from $70 per student to $100.
Virtual contribution increase --from $4,800 to $5,000.
Reading instruction allocation increase --from $97.7 million to $115 million.
Voluntary prekindergarten program increase --$413.1 million, an increase of $28.5 million (7.42 percent) for an expected additional 11,519 students.
ADMINISTRATIVE
Performance bonuses for state employees:Provides flexibility to agency heads, the chief justice, state attorneys, public defenders and others, to provide performance-related bonuses of up to 10 percent of an employees salary to up to 15 percent of the agencys authorized positions. No additional funding provided -- to be paid from current budget resources.
HEALTH CARE
Proposed budget totals $29.8 billion ($7.6 billion general revenue and $22.2 billion trust funds). There is a 0.18 percent decrease in total spending and a 9.41 percent increase in general revenue funds over the fiscal year 2011-12 appropriation.
Additional funding for increased Medicaid caseloads: Medicaid price level and workload adjustment -- $304.7 million total, $856.8 million general revenue. Additional funding for increased Medicaid caseloads and price level adjustments as agreed upon by the January 2012 Social Service Estimating Conference for an anticipated additional 155,720 Medicaid beneficiaries. No category of Medicaid eligibility is eliminated or reduced. Medicaid savings are achieved through service limitations and provider rate reductions.
Florida KidCare enrollment increase -- $4.6 million ($6.2 million general revenue). Provides funding for 2012-13 anticipated growth in the KidCare program. Funding is expected to serve an additional 11,612 children, a 4 percent growth rate.
Additional slots in the nursing home diversion program -- $43.8 million total, $18.9 million general revenue. Funding to provide an additional 2,415 slots in the nursing home diversion program, 150 PACE slots in Lee and Collier counties, 207 in the assisted living waiver, 1,250 in the aged and disabled waiver, and 187 in the community care for the elderly program.
Increase to the Medicaid home and community-based services waiver -- resources to address the APD Medicaid waiver -- $65.1 million total, $27.5 million general revenue. This brings total waiver funding to $877 million, an increase of 8.2 percent over the fiscal year 2011-12 funding. An additional $23.9 million ($10.5 million general revenue) is also provided for the 2011-12 fiscal year.
Biomedical research funding --$25 million biomedical research trust fund. Provides biomedical research funding to James and Esther King Biomedical Research Program ($5 million), Bankhead/Coley ($5 million), H. Lee Moffitt ($5 million), Sylvester Cancer Center ($5 million), and Shands Cancer Hospital ($5 million).
Resources for critical positions in state veterans nursing homes -- $4 million total trust fund. Provides funding critical salary upgrades for professional health positions in state veterans nursing homes.
Restore funding for Ounce of Prevention and Early Steps programs -- $5.5 million trust fund. Provides funding to the Ounce of Prevention program ($1.9 million) which works to improve the life outcomes of children, preserve and strengthen families, and promote healthy behavior and functioning in society. Restores funding to the Early Steps program ($3.6 million) which provides early intervention services and supports for families with infants and toddlers with disabilities to support their childs well-being, development, learning and full participation in the community.
TRANSPORTATION AND ECONOMIC DEVELOPMENT
The proposed budget includes $9.3 billion in funding which maintains Florida economic development activities and our states transportation infrastructure.
No loss of sworn law enforcement officers (FHP).
Fully funds the Department of Military Affairs: Includes $1.8 million for guard tuition assistance and $13.5 million for armories.
Greater efficiencies in the Department of Highway Safety and Motor Vehicles: Continues the transition of providing driver license issuance services at tax collectors' offices. This saves the state an additional $1.4 million next year.
Increases in funding for economic development programs: Economic development programs are funded at $205.2 million, or approximately 4.2 percent more than last year
- Within these resources, $73 milliion is provided to the governor with enhanced flexibility so he can best utilize economic incentives to take advantage of emerging trends and opportunities that promote job growth and business opportunities around the state.
- Visit Floridas total budget has been increases by $27.5 million to $54 million next year in an effort to promote our states vital tourism industry through increased marketing and advertising.
- The budget maintains level funding for state aid to libraries ($21.3 million), and increases cultural and museum funding by 21 percent with $3.4 million. Historic preservation grant programs were funded with an additional $543,000.
Fully funds the transportation work program: Meets the level requested by the Department of Transportation -- $7 billion.
AGRICULTURE AND NATURAL RESOURCES
The proposed budget is $3 billion in total funding ($181.8 million in general revenue funds and $2.8 billion in trust funds). There is a 42 percent increase in total spending (a 2.6 percent decrease in general revenue funds and a 46 percent increase in trust funds) over the current year appropriation, primarily from the transfer of the school food and nutrition programs from the Department of Education.
- School food and nutrition programs -- $1.1 billion total; $16 million general revenue. Transfers funding from the Department of Education.
- BP Deepwater Horizon Oil Spill --$5.6 million. Provides authority to spend funds from BP to conduct food safety testing and a high-visibility seafood marketing campaign.
- Forestry wildfire equipment -- $4.6 million general revenue. Provides nonrecurring funding for the replacement of critical firefighting equipment.
- Everglades restoration -- $35 million total, $15 million general revenue. Provides funding for the Comprehensive Everglades Restoration Plan, the implementation of the Northern Everglades and Estuaries program, and hybrid wetland/chemical treatment projects.
GOVERNMENT OPERATIONS
The proposed budget is $1.75 billion ($252.9 million in general revenue funds and $1.5 billion in trust funds). Overall there is a $26.2 million increase (or 1.7 percent) over the current year (0.2 percent in general revenue and 1.7 percent in trust funds), primarily due to data center consolidation (agencies consolidating into Northwood or Southwood shared resource center) and increases in the Department of Management Services to account for changes in the state health insurance funding model.
- One-stop business registration portal -- $3 million for Department of Revenue to establish and implement an Internet website that will provide individuals and businesses with a single point-of-entry into state government for completing and submitting of documents required to transact business in Florida. Conforming Bill -- PCB GOAS 12-01 is tied to this issue.
- Fiscally constrained counties -- $26.5 million. This issue provides funding for counties to offset the reductions in ad valorem tax revenue as a result of state constitutional amendments approved by voters in 2008.
- Single licensing system -- $1.9 million to update the Department of Business and Professional Regulations licensing system. The licensing system has not had a major software update since it was created in 2003. The manufacturer of the software will soon eliminate support.
HIGHER EDUCATION
The proposed budget totals $5.9 billion -- a $246.1 million (6 percent) decrease from fiscal year 2011-12. The budget also includes an 8 percent base tuition increase authority for Workforce Florida, Floridas college and state universities. With tuition revenues, the state university system realizes a total budget increase of 2.2 percent and the Florida college system budget realizes a total budget increase of 1.7 percent.
- Establishes the Florida virtual campus to provide access to online student and library support services and serve as a statewide resource and clearinghouse for postsecondary education distance learning courses and degree programs, and to increase student access and completion of degrees.
- Establishes a degree completion pilot program to recruit, recover and retain adult learners, and assist them in completing degrees aligned to high-wage, high-skill, and work force needs.
JUSTICE
The proposed budget totals $4.2 billion ($3.4 billion general revenue and $760.8 million trust fund). There is a $584.6 million (or 12.25 percent) reduction in total spending compared to fiscal year 2011-12 appropriations. General revenue is increased from the current-year funding of $3.3 billion to $3.4 billion, a reduction of $166.8 million, or 5.12 percent (primarily due to a fund shift in the state courts). Trust fund appropriations are reduced from $1.5 billion to $760.8 million, a reduction of $751.4 million, or -49.69 percent (primarily due to the clerks being taken out of the General Appropriations Act).
- No changes in adult sentencing or release policies.
- Provides funding to support the continuing backlog in foreclosure cases ($5.8 million).
- Redirects mortgage foreclosure revenues from the state courts revenue trust fund to the general revenue fund. This will offset deficits in the trust fund and provide stable funds to support and operate the state courts system.
- Removes the clerks of court and the corporation from the state budget (-$446.7 million).
- Provides funding for in-prison substance abuse treatment beds ($1 million general revenue).
- No reductions to the state attorneys, public defenders, guardian ad litem, capital collateral regional counsels or the regional conflict counsels.
The entire 2012-13 General Appropriations Act is available online.
Reach Jim Turner at jturner@sunshinestatenews.com or at (772) 215-9889.
