FLORIDA'S ECONOMY
Stimulus could mean billions in aid for Florida
If the Legislature accepts federal stimulus money, unemployment compensation and food stamps will get a boost.
BY MARC CAPUTO
Herald/Times Tallahassee Bureau
TALLAHASSEE -- Gov. Charlie Crist introduced his new stimulus czar Wednesday along with a dose of big-spending news: Florida could receive about $13.5 billion.
That's about $1.2 billion more than expected over three years. Crist's stimulus chief, Don Winstead, said he'll work with state agencies and legislators to make sure the money is spent wisely -- and efficiently.
''I do not intend to create any new bureaucracy,'' Winstead announced at a press conference. ''Bless you,'' Crist responded.
The new federal money could start flowing to Floridians' pocket books as early as this month. The roughly 450,000 people receiving unemployment compensation will get a $25 boost in their weekly checks. And by April, the nearly 10 percent of Floridians receiving food stamps should get $27 more a month.
''That may not sound like much. But for a family, that might be four meals, five meals. So that's a big deal,'' said George Sheldon, head of the Department of Children and Families.
Sheldon singled out Miami-Dade and Pinellas counties, saying that they could get large shares of homeless-assistance grants.
In all, up to $3.6 billion in stimulus money could be spent through this fiscal year, which ends June 30, assuming lawmakers sign off on Crist's recommendations to fill a widening state budget deficit. The state is now set to receive about $10.75 billion for the state budget, with another $2.7 billion going to boost unemployment and food stamp benefits.
The biggest chunks of the money are directed toward transportation projects and Medicaid, about $1.4 billion each. The AARP criticized Crist for playing a ''shell game'' by transferring hundreds of millions in federal Medicaid money to portions of the budget that have nothing to do with health care.
But the numbers aren't definitive. Because of the complex language of the federal stimulus package, neither Crist's office nor legislative analysts are quite sure just how much the state will get.
The Legislature might balk at expanding unemployment-compensation benefits further because the state might have to spend more to get more -- an underlying principle of the stimulus package. To get the full $444 million to boost benefits, the state might have to increase unemployment spending by $51 million to $226 million.
Crist's budget chief, Jerry McDaniel, acknowledged that fully expanding benefits ''might potentially increase taxes on businesses,'' because they pay into a trust fund for unemployment benefits.
Some Republicans are chafing at the ''strings attached'' to the federal stimulus legislation .
During a healthcare budget committee meeting Wednesday, Umatilla Republican Rep. Alan Hayes fretted that, if the state takes stimulus money to streamline medical records, it could make Florida dependent on federal money.
''It's like a crack deal,'' he said, comparing the state to a middle-schooler who gets hooked on a free drug sample from a pusher.
Those criticisms aside, Crist said, lawmakers will have to make the ''obvious'' choice: Take the lion's share of the stimulus money to ''jump start the economy'' keep ''world-class'' schools and offer more health care for the poor.
''The other choices besides using the stimulus money are not that great,'' Crist said. ``My friends in the House and Senate are smart. They're smart people.''
Republican Rep. Will Weatherford of Wesley Chapel said the Legislature needs to be cautious about how much money it takes, because the stimulus rules limit budget-cutting options.
''I don't know if taking the stimulus money is smart or not,'' he said. ``I do know the citizens of Florida expect us to pass a budget without raising taxes.''
Marc Caputo can be reached at mcaputo@MiamiHerald.com
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