Florida

2013 LEGISLATURE

State budget surplus will spur intense debate on what to fund

 

For the first time in three years, a slow but steady economic recovery means Gov. Rick Scott will have more tax money to spend — not less.

 

Florida Gov. Rick Scott seen here with Orange County schools superintendent Barbara Jenkins. For the first time in three years, a slow but steady economic recovery means Scott will have more tax money to spend — not less. He will soon send his proposed budget to lawmakers.
Florida Gov. Rick Scott seen here with Orange County schools superintendent Barbara Jenkins. For the first time in three years, a slow but steady economic recovery means Scott will have more tax money to spend — not less. He will soon send his proposed budget to lawmakers.
Joe Burbank / MCT
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Herald/Times Tallahassee Bureau

After five straight years of budget cuts, Scott’s spending push is a preview of the upcoming scramble for surplus money, said Florida TaxWatch researcher Kurt Wenner.

“The longer you go where you don’t give out money, the more pent-up demand you’ll create,” Wenner said. “When you finally get money, that demand will be intense.”

The parade of requests for more money has just begun:

•  Reducing an unfunded liability in the state pension fund carries an estimated cost of $300 to $500 million.

•  Steady growth in Medicaid case loads is projected to cost the state $300 million next year.

•  Nearly 30,000 new students are expected to enroll in public schools next fall at a cost of $184 million, and school districts want up to $100 million more to make campuses safer in the aftermath of the mass killings in Newtown, Conn.

•  Florida universities have asked for $118 million in return for forgoing any new tuition hikes, and they would like the state to restore $300 million cut from their budgets this year.

State money for Medicaid, schools and universities comes from the same pot of general tax money that would pay for a teacher pay increase.

The current state budget is $69.9 billion, but Scott and the Legislature can only exert influence over about one-third of that amount — the tax revenue Florida residents send to Tallahassee. The rest is federal money or state trust funds that is set aside for a specific purpose, such as building roads or reimbursing hospitals.

Florida has about $2.1 billion in reserves set aside for emergencies. Keeping a reserve equal to 10 percent of the state’s tax base, as Wall Street bonding agencies prefer, would cost $2.6 billion next year.

“There are a lot of demands,” said Senate Appropriations Committee Chairman Joe Negron, R-Stuart.

Times/Herald staff writers Lisa Gartner and Toluse Olorunnipa contributed to this report.

Contact Steve Bousquet at bousquet@tampabay.com or (850) 224-7263.

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