The People’s Budget: Governor Outlines 2009-2010 $66.5 Billion Plan; Legislative Priorities

The Office of Florida Governor Charlie Crist issued the press release below today, February 20, 2009, which outlines his proposed $66.5-billion 2009-2010 Budget and a number of legislative priorities for the upcoming 2009 Legislative Session.

The budget proposal includes recommendations for investing $3.2 billion during the current fiscal year, and $4.7 billion in 2009-10, of the federal stimulus dollars from the American Recovery and Reinvestment Act of 2009.

A covering letter from the Governor to House Speaker-Pro Tempore Larry Cretul and Senate President Jeff Atwater is attached, along with an overview presentation on the Budget.

Should you have any questions or comments, please do not hesitate to contact Colodny Fass.

 

Governor Crist Unveils 2009-10 Budget,
Legislative Priorities Aimed at Strengthening Florida’s Economy

~ Seeks funding and policies to strengthen schools, protect property owners,
keep government accountable, and promote clean emissions and renewable energy ~

www.ThePeoplesBudget.state.fl.us

TALLAHASSEE – Governor Charlie Crist today outlined his proposed $66.5-billion budget and a number of legislative priorities for the upcoming 2009 Legislative Session. His proposed measures will strengthen Florida’s economic foundation on multiple fronts. Highlights include actions to ensure wise spending in Florida’s education system, protect property owners’ pocketbooks, improve government accountability, and promote clean emissions and renewable energy policies that will save money in the long term.

“There is no doubt that we are facing a period of challenge and sacrifice for all of Florida’s families,” Governor Crist said. “But these times also provide a unique opportunity to make government better, more efficient and more accountable to its citizens. Now more than ever, it is important that government spend taxpayers’ money wisely by investing in education and clean energy and by reducing the tax burden on Floridians.”

Governor Crist’s proposed budget maintains his commitment to protecting Florida’s communities and natural resources and providing health care access for Florida’s most vulnerable citizens. His budget recommendations include investments in education, workforce development and career training, transportation and energy conservation, as well as incentives to spur economic development. Governor Crist’s proposed 2009-10 budget will create or retain 314,590 jobs.

The budget proposal includes recommendations for investing $3.2 billion during the current fiscal year, and $4.7 billion in 2009-10, of the federal stimulus dollars from the American Recovery and Reinvestment Act of 2009. This 2009-10 portion of Florida’s three-year, $12.2-billion share will support Florida’s critical programs and infrastructure needs. Without the federal stimulus funds, Florida’s 2009-10 budget would have dropped to $61.8 billion and required drastic reductions and deep cuts to important programs and projects . According to the White House, the stimulus dollars are projected to create and retain more than 206,000 jobs for Floridians over three years.

Governor Crist also called on the Florida Legislature to quickly approve the 25-year compact between the State of Florida and the Seminole Tribe of Florida, emphasizing that its approval can provide billions of dollars to Florida’s schools throughout the duration of the agreement. Since the compact was approved by the United States Department of the Interior in December 2007, the Seminole Tribe has paid $75 million to the State of Florida, and will pay another $62.5 million during the remainder of the current fiscal year. All of those funds are available to enhance and support Florida’s education system in 2009-10, as well as the guaranteed $150 million. In addition, the approved compact is projected to provide at least $129.17 million for education in 2010-11, and at least $100 million in 2011-12. These funds could be significantly larger if the tribe exceeds certain thresholds outlined in the compact.

Highlights of Governor Crist’s recommended 2009-10 budget and legislative priorities include the following:

Education

Florida’s students continue to make learning gains. Last month, Education Week’s “2009 Quality Counts: Portrait of a Population” report ranked Florida’s education 10^th in the nation, up significantly from 14^th in 2008 and 31^st in 2007. To continue Florida’s education gains, Governor Crist recommended $31.2 billion in funding for all phases of education, including almost $1.8 billion of federal stimulus funds.

Per-Student Funding

Governor Crist’s education recommendations include a 2.67-percent increase in per-student funding over the current year. This increase provides a $183 increase per student, for an average of $7,044 per student for the 2.6 million K-12 students enrolled during the 2009-10 school year.

Higher Education

Governor Crist remains committed to providing a world-class higher education system for Florida’s students. Strong universities are vital to creating the competitive workforce that will keep Florida’s economy vibrant for generations to come. The Governor’s budget recommends nearly $6 billion for higher education, including:

• $3.6 billion for state universities and medical schools, an additional $191.2 million, or a 5.6 percent increase.
• $1.8 billion for community colleges and their baccalaureate degree programs, an additional $146.8 million, or an 8.8 percent increase.
• $564 million for postsecondary workforce education within school districts, an additional $2.5 million, or a 4.6 percent increase.

The Governor also proposes a five-percent base undergraduate tuition increase, in addition to measures that will give the 11 state universities flexibility to charge a differential tuition that will generate revenue to enhance undergraduate education and need-based aid. Currently, five state universities already have this flexibility, as authorized by the 2008 Legislature. Senate Bill 762, sponsored by Senator Ken Pruitt; and House Bill 403, sponsored by Representative Will Weatherford, aim to provide more teaching resources for Florida’s 11 institutions while maintaining access and affordability for students and their families. Under the proposal:

• Stability would be added to the state university system by clarifying university governance at the local and state level, giving university boards of trustees authority over day-to-day operations and personnel, while giving the Board of Governors power over longer-range planning.
• Each state university board of trustees may adopt a tuition differential beginning with the 2009 Fall Semester, contingent upon Board of Governors’ approval.
• 70 percent of tuition differential revenues must be used to enhance undergraduate education; 30 percent must go to need-based student financial aid.
• The tuition differential can only be up to 15 percent more than the previous year’s sum of differential and base tuition. Undergraduate tuition and fees cannot exceed the national average of tuition and fees for four-year public universities.
• Bright Futures Scholarships will not cover the tuition differential. Students who have a Florida Prepaid College contract purchased before July 1, 2007, would be exempt from paying the differential. Students enrolled before July 1, 2007, and who maintain continuous enrollment, are also exempt. State universities may waive the differential fee for students who qualify for the need-based Florida Student Assistance Grant.

Truth in Classroom Spending

Governor Crist wants to ensure every taxpayer dollar for K-12 education is spent wisely and responsibly on students and their classrooms. House Bill 883, sponsored by Representative Robert Schenck, along with Senator Alex Diaz de la Portilla in the Senate, promotes transparency and fiscal accountability in education spending by requiring school districts to spend a minimum of 70 percent of operating dollars directly in the classroom. Under the legislation:

• School districts must spend a minimum of 70 percent of operating funds on direct classroom expenditures.
• The Florida Department of Education (DOE) will develop a uniform calculation for determining expenditures and a common format for reporting.
• School districts will report the district-wide and school-by-school expenditure information to the DOE and post the information on the school board Web site. Schools must provide parents with expenditure information via school report cards.

Economic Development

Governor Crist understands the connection between Florida’s education, workforce development and economic development. He understands that it is wise and prudent for the state to invest in attracting and growing businesses in order to create high-wage, high-value jobs for Floridians. To achieve these goals, he has recommended $8.9 billion for economic development projects that create or retain 314,590 jobs. These jobs are in addition to the 206,000 Florida jobs expected to be created by the $12.2 billion pumped into Florida’s economy by the American Recovery and Reinvestment Act of 2009 over three state fiscal years.

Workforce Initiatives

Despite the economic challenges facing Florida’s businesses, government and hardworking Floridians, the Sunshine State has been recognized as a national leader in terms of our greatest resource – Florida’s workforce. Recently, Florida’s workforce training programs were ranked third in the nation, according to Expansion Management magazine. To continue supporting Florida’s workforce, Governor Crist is recommending $2 billion in workforce initiatives, including the following:

• Career education and employment services that provide Florida’s workforce with a pathway to increased productivity, career advancement and economic prosperity – $800.8 million, which will create or retain 3,000 jobs.
• Ready to Work allows Floridians to improve their job skills and help employers match the skills required of a job with those of job candidates – $6.6 million.
• Vocational rehabilitative service to assist Floridians with disabilities to obtain independence and/or employment- $113.4 million.
• Early childhood education for the Voluntary Prekindergarten (VPK) Program, which allows the program to serve 154,521 children – $367.3 million, which will create or retain 12,877 jobs.
• School readiness, which creates one job for every 12 children served, is expected to create or retain 14,742 jobs for the child-care providers that allow families to remain in the workforce and achieve financial self-sufficiency – $621.2 million.

Transportation

Safe, efficient transportation infrastructure is an essential part of Governor Crist’s efforts to prepare Floridians for success in the 21^st century by reducing congestion and ineffective links between roads, airports, and seaports that can cause costly delays and reduce workforce mobility, economic activity and the quality of life of residents. Governor Crist’s budget recommendations include $5.1 billion to build and maintain the roads, bridges and public transportation facilities that grow Florida’s economy and improve the quality of life for our citizens, creating or retaining and estimated 142,800 jobs throughout the state. An additional $1.4 billion provided by the American Recovery and Reinvestment Act of 2009 will go toward shovel-ready projects that can be initiated within 180 days, creating or retaining an additional 24,200 jobs.

Regulatory Streamlining

Beginning with the Department of Business and Professional Regulation, Governor Crist is proposing legislation that will streamline and reduce burdensome licensing requirements across all state agencies. As a result of Governor Crist’s Accelerate Florida initiative launched in August 2008, the department has significantly reduced many bureaucratic processes; however, legislation is needed in order to implement further reform to help licensed professionals whose work is vital to Florida’s economy. Sponsored by Senator Don Gaetz and Representative Trudi Williams, this proposed legislation will:

• Make it easier for contractors and others to reactivate and reinstate their licenses through continuing education and other measures.
• Remove burdensome license prequalification requirements for applicable professions.
• Expand the license renewal cycle from two years to four years.
• Allowing professionals in good standing from other states to meet Florida’s licensure requirements.

Office of Tourism, Trade and Economic Development

            The Office of Tourism, Trade and Economic Development (OTTED) facilitates the productivity and growth of key Florida businesses, thereby enhancing the private sectors’ ability to expand and create high-tech, high-wage jobs. State government plays an important role by providing a climate where Florida’s businesses can be competitive and productive with minimal government interference. Key business sectors include information technology, aviation and aerospace, defense, biotechnology, tourism, sports, and film and entertainment.

The Governor’s economic development strategies also include supporting significant infrastructure projects that can improve the competitiveness of both Florida’s urban and rural communities. Governor Crist is recommending $157.1 million for the Office of Tourism, Trade and Economic Development, which will create or retain 43,291 jobs.

Economic Gardening

Governor Crist recommended, and Legislature approved during January’s Special Session A, $10 million for his economic stimulus plan targeting small Florida-based companies with high growth potential through small loans and business support services. The plan gives small businesses with between 10 and 50 employees the resources and incentives they need to expand and create new jobs now, even amidst the economic downturn affecting Florida and the nation. Known as “economic gardening,” the loans would not exceed $250,000 per business and would be used for capital purchases, employee training and salaries for new jobs.

SunRail

Governor Crist encouraged the Legislature to support SunRail, the proposed 61-mile commuter rail system that would serve the City of Orlando as well as Orange, Seminole, Volusia and Osceola counties. Construction of the commuter rail will strengthen Florida’s economy and preserve Florida’s natural resources

A recently released economic impact study found construction and operation of the commuter rail project will infuse more than $1 billion over the next 30 years into Florida’s economy and create more than 13,000 construction and operations jobs, most of them created almost immediately, generating more than $350 million in household earnings. The study also examined the commuter rail’s impact on the surrounding area, concluding that SunRail will generate an additional 113,000 construction jobs within one-half mile of rail station stops and the surrounding area, and $4.6 billion dollars in earnings for the construction sector over the next 20 years.

Compact Education Dollars

The Governor is urging lawmakers to approve the 25-year compact between the State of Florida and the Seminole Tribe of Florida, stressing that the additional revenues for Florida will create 45,000 new jobs, according to the Seminole Tribe.

Property Tax Relief

Governor Crist, continuing his efforts to reduce the tax burden on Florida homeowners and business property owners, is proposing a set of reforms that builds upon previous legislation that resulted in the largest property tax cut in state history.

10- to 5-Percent Cap and First-Time Homebuyer Exemption

Sponsored by Senator Evelyn Lynn and Representative Carl Domino, this proposed Constitutional amendment enhances the tax savings provided by the landmark Constitutional amendment approved by voters in January 2008, which – in part – limits annual increases in the assessed value on non-homesteaded residential and commercial properties to 10 percent. This proposed Constitutional amendment would:

• Further reduces the growth cap on non-homestead properties from 10 percent to 5 percent.
• Businesses and rental and second home owners will benefit from this proposal by having guaranteed moderate growth on which to budget their property taxes.

It also promotes homeownership by granting first-time Florida homebuyers an additional property tax exemption. A home is a taxpayer’s largest asset and allows individuals and families to establish wealth.

• To further encourage homeownership, the bill grants a 50-percent exemption, up to $250,000, to homeowners who previously have not owned a home in Florida.
• The exemption is phased out, for most owners, over five years.

Homeowner Fairness Amendment

Senate Bill 1164, sponsored by Senator Mike Fasano, along with Representative Marcelo Llorente in the House of Representatives, proposes a Constitutional amendment that protects homeowners from having to pay more in taxes during times when market values are declining. The legislation replaces the automatic three-percent increase, with no increase on the assessed value of a homestead when its market value decreases.

Fairness in Tax Assessments

Sponsored by Representative Carlos Lopez-Cantera, this bill implements fairness for property owners who challenge the property appraiser’s assessment of their property value. Current law presumes the appraiser’s assessment is correct, and leaves the burden of proving otherwise to the taxpayer. This legislation will remove the presumption that the property appraiser is correct and requires the party bringing suit to provide evidence for their assessment.

Smart Cap

Sponsored by Senator Mike Haridopolos and Representatives Dean Cannon and Anitere Flores, this Constitutional amendment keeps local government accountable by limiting increases in local revenues. Ensuring government spending is accountable to the people protects local residents from sharp year-to-year tax increases. In addition, local governments will work closely with their residents to find more efficient ways to deliver services. The legislation:

• Limits increases in local government revenues to inflation and growth, as measured by the value of new construction.
• Provides for adjustments if programs are transferred from state to local governments, or vice versa.
• Allows for increases above the cap with various super-majority votes by governing bodies.

Health and Human Services

Governor Crist is committed to protecting the state’s most vulnerable citizens by making every effort to preserve direct services to our children, our elderly, and our disabled populations, especially in these difficult economic times. The federal stimulus package includes an influx of federal funds to address those individuals most critically impacted by the recent downturn in the economy, and Governor Crist is recommending action to ensure the citizens of the state of Florida are as minimally impacted as possible. Governor Crist’s budget recommendations include:

• An increase of $45 million for cash assistance program and food stamps, which provides temporary assistance to families and their children, to ensure funds are available for families and children critically impacted during these challenging times.
• $294 million for the Meds AD (Medicaid for the Aged and Disabled) Program to restore 12 months of Medicaid health care coverage for 13,000 elderly and disabled individuals.  
• $470 million for the Medically Needy Program to restore 12 months of Medicaid health care coverage for 21,000 individuals who have extremely high medical bills in relation to their annual income.
• $52 million for increased enrollment in the KidCare program to support an additional 46,000 children.

Public Safety

The crime rate in Florida remains well below historical rates, and Governor Crist is committed to ensuring that Florida remains safe for its citizens and visitors. Governor Crist is recommending $4.9 billion that maintains support for Florida’s increasing prison population and continues programs to reduce recidivism, prevent juvenile crime and keep violent criminals off the streets. Governor Crist’s recommended budget also maintains funding to important support to local law enforcement agencies. Governor Crist’s budget recommendations include:

• $81.1 million for prison operation and to bond.
• $579,000 savings to administratively house the Parole Commission under the Department of Corrections (DOC).
• $700,000 savings by providing full time positions for the delivery of health services to inmates in Region IV and Taylor Correctional Institutes.
• $2.3 million cost avoidance by providing food services in-house within the DOC and the Department of Juvenile Justice (DJJ).
• $11 million for projected department operating deficits.
• $23.3 million from Byrne/Justice Assistance Grant as part of the federal stimulus package.  These funds will also enhance DOC’s substance abuse and inmate transition services, enhance the Courts Judicial inquiry System, and expand DJJ’s alternatives to detention program.

For additional details, visit www.MyFlorida.com and click on “The People’s Budget,” or visit www.ThePeoplesBudget.state.fl.us.

 

 

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