A message for Sen. Don Gaetz:
With four weeks of work behind us and five weeks of decisions ahead, the Florida Legislature is bearing down on the 2015-2016 budget and the other state-wide policies that affect our communities, businesses and families.
Here are a few of the major budget issues I’m working on:
LIP Fund: Budget-Buster or Budget-Maker
An unusual cloud hangs over the state budget. Florida is a “donor state†to the federal government – in other words, the citizens of our state pay more into the federal government than we get back. One of the ways we do get some of our money back from the feds is through what’s called the Low Income Pool (LIP). These monies are used to support our hospitals for the care they provide to uninsured patients. Because Florida has not expanded Medicaid eligibility as called for by Obamacare, the federal government is holding back $1.9 billion in Low Income Pool payments. These are Florida dollars being held hostage in Washington.
The impact of endangered LIP funds flows across all areas of the budget including health care, but also education, transportation, economic development, law enforcement and the environment. $1.9 billion is real money and the hole it creates affects whether, and how much, we can cut taxes on cell phones, textbooks and other items families pay for.
The Senate has a plan that we believe should convince the feds to release our LIP funds. The Senate’s proposal is being presented in Washington this week by Governor Scott. If it is accepted, many of the uncertainties surrounding the budget will be resolved. If not, the House and Senate will have to work out serious differences and make even tougher decisions in order to achieve a spending and tax cut agreement.
Education Funding Tied to Performance
My own assignment from Senate President Andy Gardiner is to chair the education appropriations committee, responsible for a $30.9 billion budget supporting Florida’s early learning, K-12 and higher education programs and institutions. This week, I presented that budget which received unanimous bi-partisan approval from our committee members and from the full appropriations committee.
A key provision is “performance funding,†a value which I introduced into the education budget two years ago and strongly support. This $400 million fund is used to recognize and reward universities based on graduation rates and whether degrees earned actually qualify graduates for jobs. University presidents who were skeptical last year of being funded based on performance testified forcefully this year in favor of the program.
Our own regional university, the University of West Florida, last year had one of the weakest records in the state university system when it came to students actually finishing their academic programs and in using their degrees to get employment. Motivated by the prospect of either losing or gaining funding, UWF made significant changes to help students finish on time and tying curriculum to the realities of the job market with the result that, this year, our regional university is performing much better.
The 2015-2016 Senate budget expands performance funding to include our state college system, establishing a $60 million fund that colleges would earn based on whether students are finishing their certificate or degree programs and the extent to which those programs equip graduates to compete successfully for jobs in the local economy.
The proposed budget also provides:
- $30.6 billion, including a $900 million overall increase, to education
- $19.6 billion for K-12 schools, including a $745 million increase, which equates to a 4% improvement over the current budget year
- $7,123 per K-12 student or $208 per student increase in K-12 funding
- No increase in local millage rates
- $90 million to pay for an extra hour of instruction for students of the 300 lowest performing schools in the state
- No tuition increase for state colleges and universities
- $1.2 billion, including a $57.3 million increase, in funds for state and community colleges
- $2.6 billion, including a $72.5 million increase, in funds for state universities
- $420 million in student financial aid, including Bright Futures Scholarships, Benacquisto Scholarships for National Merit Finalists, and
- $3.5 million for educational benefits for the children and spouses of deceased or disabled veterans.
The next step in the budget process is for the education budget and the other sections of the budget to move to the Senate floor for a full debate and discussion.
Because our economy is doing better, government at all levels is receiving more tax revenues. In my view, this is exactly the right time to cut taxes so that hard-working families can keep more of the money they earn. That’s why I’ll be voting for substantial tax cuts as the budget is considered in the appropriations committee and on the Senate floor. Senate and House committees have both proposed reductions in the taxes most Floridians pay on our cable and cell phone bills. I also favor cutting the tax on textbooks to give families with students in college some relief. There are plenty of other tax cut options that should be considered and passed. To borrow a phrase from House Finance and Tax Chairman Matt Gaetz, “No tax is safe!â€
Thank you for the honor of a lifetime to speak for Northwest Florida in the Senate. I’m humbled by the opportunity to stand up for our communities and our families in the Senate. Please stay in touch and share your insights, criticisms and suggestions. Your guidance makes me a better senator.
Respectfully,
Senator Don Gaetz
