Governor's Proposed Budget Relies on $1.1 Billion in Trust Fund

Governor Charlie Crist released his proposed $70.0 billion state budget for FY 2008-09 last week with education and an economic stimulus package taking center stage. We included a brief summary of the proposed budget in last Thursday's issue of the LINK.  Since that time, Florida TaxWatch (a statewide, nonprofit, nonpartisan research institute) released its analysis of the proposal, excerpts of which follow:

"The Governor recommends dealing with declining general revenue estimates by using $1.1 billion in 'reserves', basically transferring the money from various trust funds to the General Revenue Fund.  He also proposes using $600 million from lottery 'enhancements' and the gambling compact he signed recently with the Seminole Tribe.  His budget recommendations include only $300 in agency base budget reductions. He is also proposing more than $300 million in increased required local effort school property taxes over last year's budget.

By relying so heavily on trust fund transfers, the Governor's budget faces a constitutional hurdle.  The budget uses $900 million in nonrecurring revenue to fund recurring programs, which is 3.23% of total general revenue.  A 2006 constitutional amendment limits the use of such one-time money to 3%.  It requires a three-fifths vote of the legislature to exceed that limit.

The transfers include $740 million from various agencies' trust funds, including $180 million from housing funds and $97 million from environmental land acquisition funds.  The Governor also proposes using $400 million from the Lawton Chiles endowment, which contains the state's tobacco settlement money.

It provides $138 million to hold schools harmless from the property tax effects of Amendment 1.  He also wants to provide $26.2 million to offset any property tax losses for fiscally constrained counties (which the legislature required). 

This budget totals $69.962 billion, which is almost $2 billion less than the one passed by the Legislature last year.  After adjusting for the Governor's vetoes and subsequent budget cuts, this budget proposes to spend about $300 million less than the current year.  It also adds about 1,300 new positions, mostly in Corrections due to increased prisons."

 

What Happens Next?

"The Governor's recommended budget is the starting point for the Legislature to build the next state budget.  However, the Governor based his budget on the latest revenue estimates from November.  With a new estimating conference coming up, and the likelihood of more reductions, his priorities may be in danger. 

Additionally, oral arguments began last week in the Florida Supreme Court over the legality of the gambling compact the Governor signed with the Seminoles.  He is counting on that money for his recommendations.

Initial legislative reaction has been cool.  Both the House and Senate budget chiefs quickly issued statements that implied that the trust fund transfers will not fly, and that they are looking for more agency budget cuts.  CFO Alex Sink also weighed in warning that the proposed $129.5 million transfer from the Workers' Compensation Administration Trust Fund will require the state to raise Workers' Compensation assessments on Florida businesses as early as January 2009."

Update on Sadowski Coalition - Housing Trust Fund - This week, the Sadowski Coalition held a meeting to discuss the Housing Trust Fund and the cap placed on funds that can be used for the development of new and existing housing programs for 2008.  Unfortunately, a large amount of the housing trust fund dollars are being placed into the general revenue funding line item of the state's budget to fill gaps generated from shortfalls.  According to committee member Mark Hendrickson, last year, the legislature placed $96 million from the trust fund into general revenue, and more is expected to be swept from the trust fund this year.

In the Housing Alert this week, a copy of the "Follow the Money" chart that was created by Mr. Hendrickson reflects a more accurate balance of the trust funds and the amount placed in general revenue. The degree to which affordable housing monies are being taken for other purposes in this proposed budget is substantial. FAHSA will continue to participate in the Coalition's efforts in 2008 and will keep you informed on any changes.

Other Housing Alert Issues:

·         Your Advocacy Efforts Are Helping!

·         How to Terminate a Tenant's Assistance

·         Solicitation Policy - Do You Have One?

·         Available Grants Posted on Grants.gov

·         2008 LIHTC Application Deadline

·         HUD Rescinds Notice of Increase in Mortgage Insurance Premium

·         HUD Issues New Memorandum on FSL

·         National Housing Trust Fund Legislation Introduced in the Senate

·         New U.S. Housing Market Conditions Published

·         Question of the Week:  More Comments Regarding Unruly Resident Council

2008 Pre-Session Update

Week in Review at the Legislature

Automated External Defibrillators (AED) -- SB 564 by Sen. Lee Constantine (HB 243 by Rep. Thom Anderson) passed the Senate Health Regulation Committee this week with one technical amendment to conform it to the House bill. The bill is intended to reduce the civil liability of having on AED available at a business.  Although the bill passed the committee unanimously, there were some questions. The Florida Trial Bar testified that they have concerns about this bill but will continue to work with the sponsor.

Committee on Healthy Seniors Hears Nursing Facilities Bill - HB 247 by Rep. Murzin passed out of the House Healthy Seniors Committee on Tuesday.  The bill contains several provisions related to licensure, regulations, and maintenance of state nursing home facilities.  Originally, the bill reduced the frequency of visits made by Quality of Care Monitors to nursing home facilities from quarterly to annually.  The bill was amended in committee so that monitor visits will continue quarterly.  Another amendment was adopted in committee that assures state law would not affect federal reporting requirements. 

Elderly Persons and Disabled Adults - SB 366 by Senator Gwen Margolis passed the Criminal Justice Committee.  The bill reclassifies offenses of aggravated abuse of elderly persons or disabled adults from second-degree felony to first-degree felony and requires certified law enforcement officers to complete training in identifying and investigating elder abuse and neglect before June 30, 2011.  In addition, the identical bill, HB 233 by Rep. Thomas Anderson passed the Homeland Security and Public Safety Committee and was referred to the Safety and Security Council.

HIV/AIDS Education - SB 646 by Sen. Gwen Margolis (HB 153 by Rep. Joyce Cusack) passed unanimously the Senate Health Regulation Committee with an amendment to conform it to the house companion.  This is a priority bill filed for FAHSA.  It revises the HIV/AIDS educational course requirements for employees and clients of specified health and social service facilities. Employees of the facilities will be required to take the HIV/AIDS course once rather than every two years.

Hospitalized Patients/Safe Lifting - HB 471 by Rep. Jimmy Patronis (SB 508 by Sen. Mike Fasano) passed out of the House Health Innovation committee.  The bill requires that hospitals, ambulatory surgical centers, and mobile surgical facilities establish a policy on the safe lifting of patients by their employees.  By December of 2008, each hospital must establish a policy addressing safe lifting and associated handling of patients by hospital employees which minimize the risk of injuries to patients and employees.  After the committee met, FAHSA staff met with Rep. Maria Sachs to address her concern about why nursing homes were not included.  FAHSA was able to satisfy her concerns by explaining that nursing homes are already providing safeguards and policies concerning the safe lifting of patients. 

Practice of Pharmacy - SB 334 by Sen. Burt Saunders passed the Senate Health Regulations Committee. The bill revises pharmacy licensure by endorsement requirements. Specifically, it deletes the current requirement that an applicant for licensure as a pharmacist must obtain a passing score on the licensure exam prior to 12 years of application. Also, effective July 2010, a pharmacist may supervise up to four, rather than three pharmacy technicians under guidelines as approved by the Board of Pharmacy.  A pharmacy technician must be a t least 16 years of age. Furthermore, a person who had a pharmacy license suspended, denied or restricted is prohibited from registering as pharmacy technician.

FAHSA Nursing Home Alert Page

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