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2008-09 Budget
Cut Talks Heat
Up
With state
revenues down more than $3 billion from 2007-08, House
and Senate appropriations committees heard dire
predictions during their meetings this week about the
impacts on important programs and services. The
budget crisis will likely make it necessary for
lawmakers to look to trust funds to fund essential
services. Appropriations chairs will receive their
allocations by this Monday and are expected to have
committee recommendations by Tuesday. The budget will be
compiled by week's end, so staff is bracing for a
grueling week of painful budget work.
This week,
state agency heads presented their recommendations for
how a 10 percent reduction might be applied to 2008-09
agency budgets. The reductions come on the heels of cuts
taken last year in special session, and a second round
of cuts signed into law last week by Gov. Crist. At this
point, everything is fair game, including state dollars
used for federal match.
Health and
Human Services
Some predict
that Health and Human Services will have to be reduced
by as much as $700 million to meet targets. These cuts
are unprecedented in the state's history and will
require many difficult choices for lawmakers. One lobbyist
described it as, "worse than bleak."
Agency for
Health Care Administration
The Medicaid
budget will take large reductions based on the results
of the Medicaid Impact Conference. These reductions are
in the area of reimbursement rates, services, and
reductions in services as a result of changes in
eligibility criteria. Everything is on the table,
including elimination of a planned rate increase,
optional services and optional eligibility groups.
Lawmakers will decide which areas to reduce next
week.
Department
of Children and Families
DCF
experienced a $50 million cut in 2007-08, accomplished
mostly through reductions in administrative costs. With
the current recommendations, administration has been cut
another 15 percent over last year's budget. For the
2008-09 budget, reductions in contracted services
including community based care, mental health and
substance abuse, and a reduction in forensic hospital
beds are unavoidable. Community based care (child
welfare) may be reduced up to $18 million. Special
projects including family safety, substance abuse and
mental health services, programs for the homeless and
services for families at risk are also to be reduced
($2.5 million). Title IV-E Waiver GR funding is also in
jeopardy.
Criminal
Justice
Criminal and
Civil Justice Appropriations Chair Victor Crist
(R-Hillsborough) said his goals are to roll out a
preliminary budget next Tuesday. He emphasized that if
agencies do not conduct their 10 percent budget
reduction exercise, the committee will do it for them.
Department of Juvenile Justice Secretary Frank Peterman
offered a 10 percent reduction that totals an additional
$49.2 million. The agency's budget was $709 million last
year, but is now $690 million after the special session
and 07-08 reductions. Percent reductions (of the 10
percent exercise) by program area based on a pie chart
presentation are:
- 60 percent
residential
- 25 percent
probation
- 8 percent
detention
- 6 percent
prevention (tried to hold harmless)
- 1 percent
executive and support
Department
of Health
General
Revenue reductions in DOH include Children's Medical
Services ($7.5 million), Projects and Contracts ($12
million, including Family Health services such as
Pregnancy Support, Healthy Start Coalitions and funding
for the Ounce of Prevention for Healthy Families among
many others).
A 10 percent reduction in general revenue for
County Health Departments would amount to a $21 million
cut in 2009.
Agency for
Persons with Disabilities
The agency
presented reductions ($946,570), which include
administrative reductions, as well as reductions in
provider rates and savings as a result of moving
transition waiver support coordination to state
operations from contracted
services. |
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Governor's
Health Care Plan
Advances
SB 2534,
backed by Gov. Crist, passed the Senate Banking and
Insurance Committee on Tuesday. Co-sponsored by Sens.
Durell Peaden (R-Okaloosa) and Don Gaetz (R-Okaloosa),
the bill, titled, "Cover Florida Health Access Program
Act," would create a system allowing people to buy
health care coverage from two types of scaled-back
plans. The coverage would be available to people ages 19
to 64 who are uninsured. The plans would keep a handful
of mandates, including preventive care such as
mammograms and prostate screenings. One plan would
provide catastrophic coverage including hospital stays,
but the other would not. Crist's proposal also would
allow more families to insure children through the
state's KidCare program by increasing the number of
other families who could buy into the program without
receiving state subsidies. The measure has one more
committee stop in the Senate before it goes to the
floor. On the House side, legislators are considering a
more far-reaching plan championed by Rep. Aaron Bean, R-Nassau) that would
eliminate mandates and allow consumers to pick and
choose the types of benefits they want -- a concept he
calls the "farmer's
marketplace." |
EARLY
CHILDHOOD EDUCATION &
CARE
Early
Learning
HB 879 by
Rep. Kurt Kelly (R-Marion) related to early learning was
reported favorably by the Committee on Economic Development.
The bill is now in the Economic Expansion &
Infrastructure Council. The companion bill, SB 1670 by
Sen. Don Gaetz (R-Walton), passed the Education Pre-K -
12 Committee unanimously.
VPK
Pilot
HB 1021 by
Rep. Loranne Ausley (D-Leon) passed out of Schools &
Learning Council and is now in Policy & Budget. The
bill would establish a pilot program in the Big Bend
area focused on enhancing the quality of the Voluntary
Pre-K Education Program. The bill specifies counties and
provides requirements for individual
participants. |
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Juvenile
Justice
A committee
substitute for HB 273,
co-sponsored by Denise Grimsley (R-Highlands) and Trudi
Williams (R-Lee), passed the Policy & Budget Council
this week. The bill would permit the expanded use of
detention by the court and the Department of Juvenile
Justice for certain conduct on the part of youth alleged
to have committed or found to have committed a
delinquent act. It also attempts to do so by providing a
revenue source for counties to fund juvenile crime
prevention and other needs related to juvenile crime.
The bill also authorizes the court to retain
jurisdiction for the purpose of holding a child
responsible for payment of all fees and costs beyond the
age of 18, and for attending required court hearings.
The bill authorizes the court to retain jurisdiction for
the purpose of holding parents responsible for payment
of fees and costs. It also authorizes a contempt order
against a parent who knowingly and willfully fails to
bring their child to the adjudicatory hearing or
prevents the child from appearing.
Blueprint
Commission Recommendations Become a Bill
The House
Committee on Juvenile Justice unveiled a proposed
committee bill (PCB SSC 08-04) to address the issues
discussed in their workshop the previous week,
including: zero tolerance, disproportionate minority
contact, the roles of local councils and boards, and the
expungement and sealing of juvenile records. See committee
materials.
Zero
Tolerance
HB 829
by Rep. J.C. Planas (R-Miami-Dade)
was workshopped in the Committee on K-12. The bill would
revise the statute that defines
zero tolerance and clarifies legislative intent that it
applies only to criminal offenses involving the use of
weapons and use or possession of
drugs. |
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TBRC
Places Property Tax Measure on the
Ballot
The full
Taxation and Budget Reform Commission met Monday and
approved constitutional amendment CS/CP 02
that repeals the portion of property taxes used to pay
for schools. By a 21-4 vote, the amendment will go to
the November 2008 ballot. Committee Substitute for CP 02
will create a $9.3 billion hole for education, and
require the legislature to replace lost property taxes
through other means such as: raising revenues by
repealing sales tax exemptions (max $2.1 billion);
increasing the sales tax rate up to one penny (adds $3.9
billion); imposing taxes on products or services that
are not currently taxed; reducing state spending; and/or
using revenues from economic growth attributable to
lower property taxes.
Other proposals on Monday's
agenda that passed the full commission include a
statutory recommendation (SR
13) for property valuation that amends
current law to revise factors a property appraiser must
consider in deriving just valuation of real and tangible
property. It will go to the state legislature. The
proposal was amended to include language similar to HB 1283 by Rep. Dean Cannon
(R-Orange). Commissioner Barney Barnett agreed to
postpone his proposal (CP 42) if
SR 13 continues to move forward in the
legislature.
Additional
proposals that were temporarily postponed include
Commissioner Carlos Lacasa's "super exemption" proposal
(CP 21) for
homestead and non-homestead properties, and Commissioner
Patricia Levesque's CP 50.
Commissioners expressed their intentions to combine
elements from these proposals into CS/CP 02 during the
style and drafting process. A separate proposal (CP
06/08/34) regarding taxation and valuation of
working waterfronts was also postponed.
TBRC
Considers TABOR Proposal Next Week, Possible Special
District Carve Out
The Taxpayer
Bill of Rights (TABOR) proposal (CP 45)
is on the Taxation and Budget Reform Commission agenda
for their March 26 meeting in Tallahassee. The
constitutional amendment would limit all spending
increases by the state and other local governments to
the rate of inflation adjusted by population or student
enrollment changes. Property tax revenue increases are
generally limited to the rate of inflation plus changes
in property values due to changes, additions,
reductions, or improvements. Caps could be overridden by
a super majority vote of the governing body. All new
taxes or fees would have to be approved by vote of the
electors. A majority of the voters of a unit of
government would be able to approve the suspension of a
spending limit or ad valorem revenue limit for up to
four years.
A
strike-all amendment was filed late Friday containing
significant revisions. An opportunity to get
a "carve out" for special districts is also likely. FCSC
will continue to monitor this issue closely.
Partial
Payment of Property Taxes
HB 51 by
Rep. Seth McKeel (R-Polk) would require tax collectors to accept
payments of portions of amounts billed in property tax
notices. The bill passed through the Committee on State Affairs and is
now in the Government Efficiency & Accountability
Council. Identical bill, SB 1004 by
Sen. Mike Fasano (R-Pasco), has been referred to
Community Affairs; Finance and Tax; and General
Government Appropriations.
Mental
Health Parity
HB 19 by
Rep. Ed Homan (R-Hillsborough) was reported favorably
with 1 amendment by the Committee on Health Innovation.
The companion bill, SB 164, by
Sen. Victor Crist (R-Hillsborough) passed Health Policy
unanimously. It is now in General Government
Appropriations. The bills would require coverage for all
mental health disorders, and require that mental health
benefits not be more restrictive than those that are
applicable to other diseases, illnesses and medical
conditions.
Termination
of Parental Rights/Adoption
SB 1704
co-sponsored by Sen. Ronda Storms (R-Hillsborough) and
Sen. Durell Peaden (R-Okaloosa) related to termination
of parental rights passed unanimously through the
Children, Families, and Elder Affairs Committee. It now
goes to Health Policy. SB 1084 by
Sen. Nan Rich (D-Broward) related to adoption, also
moved favorably through the same committee. It now goes
to
Judiciary. | |
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In Other News
FCSC
Leaders Focus on Children's Issues During Capitol Hill
Day
With a backdrop of
perilous funding cuts for critical education and human service
programs, Children's Services Council (CSC) board chairs and
executive directors held a series of meetings on Capitol Hill
this week to strategize about how to protect Florida's
children.
On Tuesday, CSC
leadership participated in a two-hour executive roundtable
with DCF Secretary Bob Butterworth, DCF Deputy Secretary
George Sheldon, Commissioner of Education Eric Smith,
Chancellor of K-12 Frances Haithcock, AWI Director Monesia
Brown and Jim Kallinger, the Governor's Chief Child
Advocate. The
state budget was central to the meeting, but the conversation
also turned to a heightened need for collaboration, new
approaches, and a renewed focus on outcomes in light of tough
economic times. The use of technology, unique identifiers for
tracking children across programs, sharing data, and the
potential of the Children's Cabinet were among ideas that
emanated from discussions.
Following the
roundtable discussion, CSC leaders met with Lieutenant
Governor Jeff Kottkamp, chair of the Governor's Children and
Youth Cabinet. He also expressed concern for the budget
situation and touted the Governor's approach to utilize a
combination of trust funds, reserves, and economic stimulus to
protect some of the most important services.
On Wednesday, Mike
Cusick, President of the Florida Coalition for Children, met
with the Florida Children's Services Council board and shared
information about proposed funding cuts to Community Based
Care (CBC), and discussed more long-term strategies for
dealing with an underfunded child welfare system.
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Capitol
Connection is also available online at the FCSC
web
site.
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