Last week, Gov. Rick Scott unveiled his proposed $65.9-billion "Jobs Budget," saying it would reduce state spending, lower taxes and hold government accountable. The budget reduces state spending by $5 billion through proposals such as eliminating 8,600 state jobs, reducing the state's contribution to the Florida Retirement System, reducing funds for public education, and moving Medicaid to a managed-care system. His budget also sweeps most trust funds. In an unprecedented move, Gov. Scott also released an 800-plus page implementing bill that outlines his plan for state government reform and how his budget would be implemented.

 

Since the budget's release, the Florida CSC policy team has been analyzing hundreds of pages to determine how the governor's plan will affect Florida's children and families. Analysis has proven difficult because the governor's budget does not line up with previous-year budgets. Some allocations have been moved to different agencies altogether. Below are a few highlights.

 

Areas of Promise

• Provides increases for Voluntary Pre-K, both for enrollment and Base Student Allocation
• Healthy Start Coalitions are funded at $4.7 million; however, they have been moved from the Department of Health to a Management Services section in General Government
• Provides an increase for children's mental health services
• Places more funding in front-end services for juvenile justice (Community Based Care model); however, there are cuts to residential beds

Level Funding

• Funding for Florida KidCare, Adoption Subsidies, Independent Living, and Substance Abuse is at the same level as 2010-11
• Healthy Families is held harmless to cuts with $2 million in non-recurring made recurring

Areas of Concern

• Moves the Children and Youth Cabinet under the Department of Children and Families; allows agency heads to appoint a designee; reduces number of required meetings from six to four
• Cuts Child Protection Teams by 25 percent statewide
• Cuts funding for residential beds in juvenile facilities

The House and Senate are expected to roll out their budget proposals in the coming weeks. Florida CSC will continue monitoring budget activity and provide more details as they become available.

 

Booster Seats
The Senate Transportation Committee heard the Booster Seat bill (SB 238 by Sen. Thad Altman).  The committee voted the bill out favorably (4 Yeas, 1 Nay) with several members making strong supportive comments.  The next stop for this bill is the Senate Criminal Justice Committee, chaired by Sen. Evers, who was the single opposing vote in the Transportation Committee. Thanks to efforts of the Florida CSC policy team, Sen. Evers has agreed to give the bill a hearing in his committee on Feb. 22. A similar bill has been filed in the House (HB 11 by Rep. Richard Steinberg) with three committee references.

KidCare
The Kid Care bill, SB 406 by Sen. Eleanor Sobel, was heard in the Senate Health Regulation Committee and passed unanimously.  The next committee of reference is Education Pre-K-12. The provisions within the bill have also been included in the Senate's proposed Medicaid Reform bill, which was introduced in Senate Health and Human Services Thursday.

The House companion, HB 245 by Rep. Ana Rivas Logan, is up first in the Health and Human Services Access Subcommittee. This is the first of four House committees, so it is important to get this bill moving quickly. The committee is chaired by Rep. Gayle Harrell. Supporters are urged to contact Rep. Harrell, and House Appropriations Committee Chair Denise Grimsley to request that the bill be placed on the HHS agenda.

Medicaid Reform
The Senate Health and Human Services Appropriations Committee, chaired by Sen. Joe Negron, met Feb. 17 to review the first draft of a proposed Medicaid Reform bill (see Committee Packet). Sen. Negron explained that the bill ensures the state will be there for individuals who need help. He added that the bill would bring entrepreneurial energy and competition to the system, and would provide patients with options. The Florida CSC policy team has been working with Sen. Negron and other lawmakers to ensure children are not overlooked in Medicaid reform efforts. Most of the provisions recommended by Florida CSC, and supported by Sens. Sobel and Gaetz, have been included in the proposed Medicaid bill. A few highlights include:

• Provides for a medical home; may need clarification for a medical home for children.
• Changes the minimum Medical Loss Ratio (MLR) for plans in the Healthy Kids program from 85 percent to 90 percent; need specific MLR for children.
• Provides for early and periodic diagnosis, screening and treatment (EPSDT).
• Requires the Florida Healthy Kids Corporation to include the use of application forms for school lunch and breakfast programs (Sen. Sobel language).
• Encourages school districts to modify their application form for school breakfast and lunch programs to facilitate data sharing between the school district and Florida Healthy Kids Corporation.
• Establishes the CMS Network as a qualified plan under state contract
• Establishes 19 regions in which qualified plans will provide Medicaid services.
• Provides for co-pays ($3 primary care physician, $100 emergency room fee for non-emergencies)

The Agency for Health Care Administration is preparing the necessary waiver to be submitted Aug. 1, 2011. The federal government has until Dec. 31 to approve the waiver. Gov. Scott has met with U.S. Health and Human Services Secretary Sebelius who indicated they are willing to negotiate with Florida.

Special Districts
The Senate Community Affairs Committee will generate a special district bill based on the Senate's interim report, "Merger of Independent Special Districts." There is some concern among committee members about certain special taxing districts; however children's services councils were not discussed.
 
In the House, the Finance and Tax Committee, chaired by Rep. Stephen Precourt, heard two presentations on special taxing districts. One was from Jack Gaskins, special district information program, department of community affairs, and the other was by Vince Aldridge, committee staff. As of yet, there is no clearly defined scope for the committee's work, which leaves uncertainty about which direction the committee might go. Comments from committee members included concerns that independent districts fall outside the 10 mill cap that local governments must live by. Members also voiced concerns that the total tax and fee burden for taxpayers should be examined. The chair indicated that the committee would look for redundancy, inefficiency, poor accountability to the voters and using special districts to avoid the millage cap. See the committee packet containing presentations by Gaskins and Aldridge.

Smart Caps (TABOR)
The Senate Finance and Tax Subcommittee heard SJR 958 on State Government Revenue Limitation. If passed by the Legislature, the proposed constitutional amendment would go to voters in 2012 or possibly earlier, and, if approved, would take effect upon approval. The new state revenue limitation would first apply to state fiscal year 2014-15. Provisions of the bill are as follows:  

• Replaces the existing state revenue limitation based on Florida personal income growth with a new state revenue limitation based on changes in population and inflation.
• Requires excess revenues to be deposited into the Budget Stabilization Fund, used to support public education, or returned to the taxpayers.
• Adds fines and revenues used to pay debt service on bonds issued after July 1, 2012 to the state revenues subject to the limitation.
• Authorizes the Legislature to increase the revenue limitation by a supermajority vote.
• Authorizes the Legislature to place a proposed increase before the voters, requiring approval by 60 percent of the voters.

While the Senate proposal excludes local governments, there appears to be interest on the House side to look at including local governments in some type of spending cap. Florida CSC will continue to monitor this closely. 

Proposed Move of Children and Youth Cabinet to DCF
Under a proposal by Governor Rick Scott, the Children and Youth Cabinet would no longer be housed in the Governor's Office. Instead, it would be moved to the Florida Department of Children and Families (DCF), and would be chaired by the DCF Secretary. Another significant change proposes eliminating the requirement for agency heads to serve on the Cabinet. They could appoint a designee to serve in their place. The Cabinet also would go from a statutory requirement of meeting six times a year down to four. Additional proposals seek to eliminate the Office of Adoption and Child Protection and the Child Abuse Prevention and Permanency Advisory Council. Any changes to the Governor's Children and Youth Cabinet will require a change to current legislation.

Agency Reorg Could Put Early Learning, VPK in DOE
The Senate Transportation and Economic Development (TED) Appropriations Committee is considering a staff proposal that would combine the Department of Community Affairs and Agency for Workforce Innovation into a new Jobs and Economic Opportunity Agency. Early Learning and Voluntary Pre-K would transfer to the Department of Education. It was not made clear whether the new entity would reside in the Governor's Office or be a separate executive agency. Proposed legislation creating this agency would go to the Community Affairs Committee first then TED Appropriations. Staff estimated that the reorganization could save $8 million in recurring general revenue.