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Week Two March 14, 2008
Florida Faces $3 Billion Shortfall in 2008-09
 

Figures from the General Revenue Estimating Conference this week revealed the state will collect $1.9 billion less in general revenue for 2008-09 than originally projected. Added to that figure is an increase of an estimated $1 billion in non-discretionary spending for programs -- mainly education and Medicaid -- that amount to an overall budget shortage of nearly $3 billion next year. House Speaker Marco Rubio and Senate President Ken Pruitt maintain they will not use reserves to make up the shortage. Gov. Crist stated he will

determine what the most important things are to fund first, naming education and public safety. He emphasized he will not raise taxes.

 

State agencies were asked to present their recommendations for 2008-09 budget reductions to appropriations committees in the House and Senate this week. Cuts in Agency for Health Care Administration, Department of Children and Families and Department of Health budgets will impact local programs such as community based care, Healthy Start Coalitions, services to pregnant women, children's medical services, and county health departments. Ten percent reductions in school readiness in the Agency for Workforce Innovation would reduce funding for subsidized child care by approximately $30 million ($15.7 in state general revenue and $14.5 million of available federal match). Department of Juvenile Justice budget cuts would be $49.2 million. Cuts to Children's Medical Services would be $11.6 million out of a $43.9 million budget.

 

The House indicated they will try to remain close to the principles that have guided them throughout their budget deliberations, including minimal impacts to programs that receive federal funding and an effort to make more targeted cuts, rather than use the across-the-board approach. Although the Governor, and House and Senate leaders have said tax increases are not an option, many lawmakers have proposals to increase various revenues and fees, including a proposal to increase taxes on cigarettes by $1 per pack. Legislators are also examining the state's trust funds for large amounts to plug holes in the deficit. House Committees are seriously examining each and every contract that state agencies have for various services to see which of those are unnecessary. While the Governor's budget proposal included taking some money out of Florida's rainy day fund, the House Speaker and Senate President have said the rainy day fund is not an option due to constitutional requirements to reimburse funds. Members are on a tight timeline, as budgets will be up for committee votes on March 27.

 
TAKE ACTION: Please call Sen. Nan Rich and thank her for strongly objecting to proposed cuts to medically needy children.
 
Governor Signs 2007-08 Budget-Cutting Bills
 

On Wednesday, Republicans pushed through a $512 million budget-cutting plan (HB 7009), mostly refusing Democrats' suggestions to minimize cuts to state programs by dipping into savings. The vote on the budget-cutting bill in the House was 77-41, and in the Senate (SB 2502) was 27-12, largely along partisan lines. Gov. Crist signed the bills into law Friday. Public schools will be hit hardest with a $350 million reduction. Health and Human Services will take a $36.9 million cut while the state judicial system will be cut $48 million.
CHILDREN'S HEALTH
 

Medicaid

In light of dire budget projections for FY 2008-09, the Senate is considering reductions in Medicaid reimbursement rates. The House is largely opposed to the idea; however, House Healthcare Council Chairman Aaron Bean (R-Nassau) indicated Thursday that Medicaid rates would be part of upcoming budget talks. Medicaid, which is jointly funded by state and federal governments, is a $16 billion program that makes up one of the largest parts of Florida's budget. As a result, lawmakers likely will look to cut Medicaid costs as they deal with budget shortfalls.

EARLY CHILDHOOD EDUCATION & CARE

 
School Readiness

Monesia Brown, Director of the Agency for Workforce Innovation (AWI), gave a presentation on the impacts of cuts to School Readiness programs to the House Economic Expansion and Infrastructure Council on Thursday. She described the devastating impact of a potential $30 million reduction in School Readiness funds. She spoke about the cost to the workforce, as well as the educational impact of children losing their child care placements. She offered a reduction of $3.7 million, which would not cause the loss of Federal funds, and pleaded with the Council not to cut more. She pointed out that 47,000 children are on the wait list, and more than 7,000 children would lose child care if the deeper cuts are implemented.   

 

During Brown's presentation, Rep. Susan Bucher (D-Palm Beach) asked about increased costs to the state in welfare/TANF if parents could not get child care and go to work. Brown said AWI would work to calculate that impact. Rep. Keith Fitzgerald (D-Manatee) asked what criteria would be used to determine which children would lose child care. Brown explained that the criteria would be decided by each Early Learning Coalition (ELC) based on local priorities. Susan Main of the Early Learning Advisory Council said local coalitions would most likely restrict their criteria by not serving children ages 5-12, even though this group of children costs less due to fewer hours in the program. Rep. Dean Cannon (R-Orange) asked which groups of children AWI was mandated to serve. Main replied that ELCs must serve children in the child welfare system and children referred by the local Workforce Development Board.

 

In the Senate, Transportation and Economic Development Appropriations Chair Mike Fasano (R-Pasco) asked whether ELCs have reduced their administration costs before considering disenrolling any children. Brown reported that none of the ELCs are at their 5 percent cap and some, such as Broward, are as low as 1-2 percent. Sen. Gwen Margolis (D-Broward) emphasized the importance of not jeopardizing federal matching funds. Dr. Mel Jurado, ELC Board Hillsborough, made excellent points on behalf of all of the coalitions.

 

Early Learning

HB 879 by Rep. Kurt Kelly (R-Marion) related to early learning cleared its first committee Thursday by unanimous vote in the House Committee on Economic Development. The bill, called the Success in Early Learning Act, officially moves Child Care Resource and Referral and the Child Care Executive Partnership to the Agency for Workforce Innovation, and would allow Early Learning Coalitions to conduct business by phone. The bill also includes a measure requiring accreditation bodies for Pre-K programs to have written standards and on-site visits, and addresses requirements for fingerprinting. The companion bill, SB 1670 by Sen. Don Gaetz (R-Walton), is scheduled for the Education Pre-K - 12 Committee on March 27.

 

VPK Trust Fund

The House Economic Expansion and Infrastructure Council considered Proposed Committee Bill EEIC 08-06 creating the voluntary pre-kindergarten education trust fund in the Agency for Workforce Innovation. The bill passed unanimously. The bill now goes to the House, and requires a 3/5 vote in each house for passage. Currently VPK funds are deposited in the Employment Security Administration Trust Fund, which does not allow for tracking and accountability of VPK funds.

JUVENILE JUSTICE

 

House Committee Reviews Blueprint Commission Recommendations

The House Committee on Juvenile Justice held a workshop Wednesday to review recommendations from the Blueprint Commission. Among the presentations was an OPPAGA report titled, "DJJ Should Better Identify At-Risk Youth, Use Proven Prevention Models, and Revise Funding Practices." Other topics included the current DJJ risk assessment tool and juvenile records. Committee members heard from representatives with the NAACP, Agency for Workforce Innovation, Department of Children and Families, Department of Juvenile Justice, and the Agency for Healthcare Administration. CLICK HERE for OPPAGA report and other meeting materials.

OTHER ISSUES

 

Partial Payment of Property Taxes

HB 51 by Rep. Seth McKeel (R-Polk) passed unanimously out of the Committee on State Affairs Wednesday. The bill would require tax collectors to accept payments of portions of amounts billed in property tax notices. The bill now goes to the Government Efficiency & Accountability Council. SB 1004 by Sen. Mike Fasano (R-Pasco) is identical.

 

Taxation and Budget Reform Commission

The full Taxation and Budget Reform Commission, as well as the Style and Drafting Committee, will meet Monday, March 17, in Tallahassee. Among the proposals being discussed by the full commission are:

  • CP 0002 - eliminates property taxes for schools and replaces part of the lost revenue with a repeal of certain sales tax exemptions.
  • CP 0021 - creates a "super" exemption for non-homestead and homestead residential property of 50% of the just value after the first $50,000. Also provides a temporary increase in state sales tax rate to address reductions in ad valorem taxes.
  • CP 0050 - eliminates property taxes for schools and requires replacement of lost revenue through several options. Also reduces the maximum millage rate for school property taxes.

Termination of Parental Rights and Adoption

SB 1704 co-sponsored by Sen. Ronda Storms (R-Hillsborough) and Sen. Durell Peaden (R-Okaloosa) related to termination of parental rights, and SB 1084 by Sen. Nan Rich (D-Broward) related to adoption moved favorably through the Senate Committee on Children, Families and Elder Affairs this week.

In Other News

FCSC Capitol Hill Day March 18

Children's Services Council CEOs and Board Chairs will convene in Tallahassee March 18 for the annual Florida Children's Services Council (FCSC) Capitol Hill Day. While in the Capitol City, FCSC leaders will participate in an Executive Roundtable with Department of Children and Families Secretary Bob Butterworth, Agency for Workforce Innovation Director Monesia Brown, Department of Education Commissioner Eric Smith, and Chief Child Advocate Jim Kallinger. Lt. Governor Jeff Kottkamp is also scheduled to meet with FCSC board members.

 

Boy's Idea Closer To Becoming Law

An 11-year-old Coconut Grove boy's idea for feeding the needy took a big step toward becoming law when it passed the Senate. Jack Davis, who had visited a homeless center on a school field trip, was at a restaurant when he asked what happened to leftover food. He was told that it is thrown out rather than donated because restaurant owners are afraid they would be sued if anyone got sick from the food. Jack then suggested to his dad that restaurants might donate food if they could be protected from lawsuits. His father passed the idea on to Rep. Ari Porth, D-Coral Springs. Porth and Sen. Nan Rich, D-Weston, filed bills to limit liability for donated food that has been prepared at a licensed restaurant. The Senate unanimously passed Rich's version of the Jack Davis Florida Restaurant Lending a Helping Hand Act (SB 276). It now goes to the House. (March 14 article in The Ledger)

 
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Capitol Connection is also available online at the FCSC web site.

 

This issue of Capitol Connection is brought to you by The Firm, composed of CSC legislative liaisons around the state. Please contact Firm Chair Diana Ragbeer, Director of Public Affairs and Communications with The Children's Trust, at diana@thechildrenstrust.org or Vivian Alarcon, CEO, Florida Children's Services Council, at valarcon@floridacsc.org with questions regarding legislative issues in this newsletter.

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