Despite a gloomy economic forecast for Florida, Gov. Charlie Crist pledged to do more for Floridians during his State of the State address on Opening Day. Among his priorities, the Governor wants to ensure children and families are healthy. To that end, he has proposed $60 million aimed at enrolling 46,000 additional children in the KidCare program. Other priorities the Governor mentioned were world class schools, safe neighborhoods, a vibrant economy, and sustainable natural resources.

 

House Speaker Marco Rubio painted a more somber picture, saying Florida needs to act more boldly because the state has "failed to confront and solve economic problems in a meaningful way." He set forth a number of priorities for the year, including limiting government by implementing revenue caps at state and local levels; improving access to health care through efforts such as Medicaid Reform expansion into Miami-Dade; and continued property tax relief efforts.

Senate President Ken Pruitt acknowledged the economic challenges ahead. "The pressure will be on as we reduce costs, find efficiencies, and say no to new initiatives. Now, more than ever, the traditional role of the Senate is going to be vital." President Pruitt said he will use his last year as Senate leader to focus on Florida's infrastructure, property insurance reform, education, the elderly, alternative energy sources and the environment.

With Florida's economy lagging and incoming taxes expected to be lower this year than projected when legislators approved the budget last year, the Senate passed a proposed $503.3 million reduction in the state's current $70 billion budget. Senators changed their original proposal and shifted $2.5 million into the criminal justice budget to alleviate cuts impacting prosecutors and public defenders. The House passed its own budget-cutting proposal by a 75-41 vote a day earlier.

 

The Legislature completed the conference process over the weekend and is poised this week to finalize reductions of approximately $500 million to the 2007-08 state budget. None of the proposed cuts appear to directly impact programs serving children. There is a $6.7 million reduction in the pre-k program, but this is primarily surplus funding that will be restored should this be needed as additional children enter the program. In addition, some unfortunate juvenile justice reductions have been proposed to prevention and residential programs, including Pace for Girls.

Reductions were achieved largely through a 4 percent "hold back" exercise in administrative costs undertaken by the agencies. The Health and Human Services Appropriations Committee also achieved significant reductions largely through retroactively freezing Medicaid reimbursement levels (back to July 1, 2007). Larger reductions will take place in the 2008-09 budget, which is expected to contain between $2.5 and $3 billion of cuts. Legislative staff has already begun to identify potential reduction areas. Stay tuned.

HB 1457 by Rep. Rene Garcia (R-Miami-Dade) and SB 2032 by Sen. Mike Fasano (R-Pasco) would require the Agency for Health Care Administration to assign family members to the same managed care plan or MediPass provider; revise funding provisions related to increased KidCare enrollment; provide for continuation of KidCare eligibility; revise the time limit for eligibility of children whose coverage was voluntarily canceled; require notice to health plans and providers when a child is no longer eligible for certain coverage; require the Department of Children and Families (DCF) to develop a standardized KidCare eligibility application form; revise the timeframe for redetermination or reverification of eligibility; and require DCF, in consultation with Florida Healthy Kids Corporation, to design a plan for a non-duplicative application process for coverage. The House bill has been referred to Healthcare Council and Policy & Budget Council. The Senate bill has been referred to Health Policy; Banking and Insurance; and Health and Human Services Appropriations.

HB 619, filed by Rep. Dan Gelber (D-Miami-Dade), and SB 668, by Sen. Bill Posey (R-Orange), seek to change the age requirement of children who must use a crash-tested, federally approved child restraint device from 5 to 7 years or younger. The bill also addresses child booster seats for children ages 4 to 7. The House bill has been referred to the Committee on Infrastructure by the Economic Expansion & Infrastructure Council. The Senate bill has been referred to Transportation, Criminal Justice, and Transportation and Economic Development Appropriations.

Rep. Loranne Ausley (D-Leon) and Sen. Nan Rich (D-Broward) filed HB 627 and SB 1404, respectively, to create a five star, voluntary rating system for licensed early learning programs, child care facilities and facilities participating in the VPK program. Pilot programs (subject to appropriation) would be created through July 1, 2010, for the following counties: Broward, Duval, Hillsborough, Leon, Miami-Dade, Orange, Palm Beach and Pinellas. The House bill has been referred to Schools & Learning Council, and Policy & Budget Council. The Senate bill has been referred to Education Pre-K - 12; Children, Families, and Elder Affairs; Commerce; Transportation and Economic Development Appropriations.

HB 3 by Rep. Dorothy Bendross-Mindingall (D-Miami-Dade) and SB 500 by Sen. Larcenia Bullard (D-Monroe) allows counties and municipalities to designate certain areas as children's zones, and provides a process for nominating children's zones and organizing planning teams and strategic community plans. The bills also establish a Magic City Children's Zone pilot project. The House bill has been referred to the Committee on Healthy Families; Healthcare Council; and Policy & Budget Council. The Senate bill has been referred to Community Affairs; Children, Families and Elder Affairs; Governmental Operations; and Health and Human Services Appropriations.

Taxation and Budget Reform Commission (TBRC) committees met last Thursday and Friday and approved proposals that will impact Children's Services Councils. They are:

 

CP 021, by Carlos Lacasa, passed unanimously out of the Governmental Procedures and Structure Committee. The proposed constitutional amendment would create a "super" exemption for non-homestead and homestead residential property of 50% of the just value after the first $50,000. In addition, a temporary increase in the state sales tax rate is provided to address reductions in ad valorem taxes associated with the constitutional proposal, if passed by the electors.

CP 045, known as the "Taxpayer Bill of Rights (TABOR)," limits revenue and expenditures of state and local governments (including special districts).  The revised version, which passed the Finance & Taxation Committee, would limit annual revenue increases to inflation, population growth (or enrollment for school tax) and an additional 1 percent adjustment, using 2007-08 as a base year. Governments would be able to increase the cap for up to 10 years with a three-fourths vote of the governing board. However, it would require that all new taxes and fees be approved by voters.

CP 0051 proposes to limit the duration of independent special districts created after January 5, 2009, to 11 years (except community development districts) that have the authority to levy an ad valorem tax or assessment. However, districts may be reauthorized by the voters for additional periods no more than 11 years as provided by law.

 

These proposals, and others, will go to the full committee where 17 of 25 votes are needed for the proposed constitutional amendments to go on the November 2008 ballot.