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Scott Unveils Big Budget Cuts — $4.6 Billion And 8,681 Jobs
February 8, 2011
Gov. Rick Scott unveiled his first budget Monday as Florida’s chief executive – a $65.9 billion blueprint that cuts $4.6 billion in state spending, trims 8,681 jobs across state agencies, and sets the state on course for even more reductions next year. The budget includes the closure of two unnamed prisons and big cuts in the Department of Corrections.
Scott went to the Lake County city of Eustis to tout the proposal at a rally with 1,000 Tea Party activists who steadily cheered his belt-tightening message, and appeared ready to be marshaled as a grassroots army to help the governor get his plan through a so-far lukewarm Legislature.
Scott said his proposal also leaves room for $2 billion in tax cuts – part of his central campaign theme. The new governor – who ran and won last November on an outsider’s theme – departed with tradition both by laying out his budget 200 miles from the state Capitol, but also by outlining a two-year spending plan.
His budget proposal for 2012-13 shrinks state spending even more – to $63.3 billion. Spread throughout the proposal are performance goals with outcomes expected to be achieved by specific line-item spending.
“Let’s start with the obvious,” Scott said to cheers from Tea Party leaders gathered at the First Baptist Church in Eustis. “We can’t spend more than we take in.”
With the state facing a budget shortfall of at least $3.6 billion, Scott is proposing deep reductions in many agencies, with some of the heaviest scalpeling used on those whose workers and allies formed a political base for gubernatorial rival Alex Sink.
The Corrections Department would absorb an $82.4 million cut and lose 1,690 jobs – or more than 5 percent of its workforce. The Police Benevolent Association union which represents most correctional officers, campaigned heavily against Scott last fall, warning he would cut so many prison jobs it would put people in danger.
The state’s Education Department budget is reduced $3.3 billion, the largest single reduction in Scott’s proposal. While education also is the largest item of state spending overall, the Florida Education Association, the state’s largest teachers’ union, also was a vocal opponent of Scott, campaigning for the Democratic nominee.
Returning to the Capitol following the Tea Party event, Scott said he wasn’t proposing to cut state financing to public schools, that the budget merely reflected the loss of federal dollars.
While per student spending is slated to be $6,600, a $298 reduction from this year’s level after retirement savings are factored in, Scott attributed that drop to the loss of $872 million in federal stimulus money that went to K-12 education, money Scott said the state shouldn’t have relied on in the first place.
Scott did propose to earmark $8.6 billion for “The Education Choice Fund,” aimed at expanding charter school, virtual-school and other “choice” options for elementary and high school students.
Scott has included in his budget a plan to make the 655,000 public employees – mostly school board members – contribute 5 percent of their paychecks for remaining in the Florida Retirement System, the government pension plan. Scott has said those contributions will save taxpayers $2.8 billion over the next two years.
Some of Scott’s centerpiece campaign promises – cutting property-taxes and the state’s corporate-income tax levy – came up smaller than earlier billed.
Combined, the first-year reductions were just below $1 billion for these two tax cuts – about half of his campaign pledge.
Scott did, however, manage to actually exceed the $2 billion in promised tax reductions by adding $301.4 million in unemployment compensation tax cuts, $177.8 million in water management district property-tax reductions, achieved by 25 percent rollbacks the next two years, and a $235.7 million reduction in highway safety fees approved by lawmakers in 2009.
Scott’s budget proposal also includes other cost-cutting measures that, if history is a guide, are certain to prove controversial with state lawmakers. Among them:
- Privatizing the state’s three mental health hospitals in Chattahoochee, Macclenny and Gainesville, savings also gained by eliminating the state workforce;
- Closing two prisons – a move Scott said was made easier by the state having 8,000 excess prison beds in the system;
- Saving close to $1 billion by limiting the state’s Medically Needy program to pregnant women and children, barring thousands of transplant patients and those with catastrophic illnesses from participating in the program;
- Cutting $1 billion from the state’s Agency for Health Care Administration, by imposing 5 percent cuts in state payments to hospitals, nursing homes and other health-care facilities, and eliminating annual cost of health care increases;
- Setting in motion plans to steer Florida’s more than 2.7 million Medicaid patients into managed care programs, setting the stage for $1.2 billion in savings in 2012-13;
Revamping health insurance coverage for state workers, increasing payments for Florida’s select exempt employees such as legislative staff and lawmakers, and senior managers. Scott also would cap employee health coverage at $5,000 annually; - More than double the size of spending on Scott’s own office – bringing its budget to more than $638,000, as the governor takes on a greater role as a business recruiter for Florida. A newly created economic development agency would come under Scott’s control, while he also wants sole authority over tax- and financial incentives that currently must be approved by the Legislative Budget Commission.
Although Scott’s budget proposal sets the stage for flashpoints with lawmakers, for now, legislative leaders were spare in their praise. Indeed, reaction around the state was generally muted, in part, because Scott’s budget plan was largely available only on a website that was down most of the day, apparently because of overuse.
“The first and highest priorities of the Florida House are to cut government spending and not raise taxes,” said House Speaker Dean Cannon, R-Winter Park. “I am grateful that Gov. Scott shares these goals.”
Senate President Mike Haridopolos, R-Merritt Island, said, “The Senate is dedicated to working with the governor to provide a balanced budget with no new taxes. The best way to improve the business environment in Florida is to keep taxes low and live within our means. We will do that.”
Senate Democratic Leader Nan Rich of Weston, however, derided the tax-cuts and spending reductions coursing through Scott’s proposal. She said the Republican governor’s approach could threaten the state’s economic turnaround.
“The retreaded voodoo economics we heard today will not right this ship,” Rich said. “But it will drill more holes in our already badly damaged public education. It will further eliminate the life rafts hundreds of thousands of Floridians have had to turn to for basic survival.”
Pictured: Century Correctional Institution. NorthEscambia.com file photos, click to enlarge.
By John Kennedy
The News Service Florida
Comments
21 Responses to “Scott Unveils Big Budget Cuts — $4.6 Billion And 8,681 Jobs”
YES, I agree 100% with “FEDUP” why not drug test people on welfare, foodstamps, and disability???
Did he also cut his pay???
What a piece of CRAP he turned out to be!!!
Oh yea, let’s cut all these jobs so we can then apply for unemployment. YEP, a real winner.
This only means that a once working person will now be on unemployment either way it is coming out of your taxes….Yeah let us close it…I would love to sit at home and get paid!!!
This is for the Scott lovers!!!! lol!!!
Oh he’s good
So what does being a part of the FRS have to do with the day-to-day local law enforcement function? Re-vamping the retirement doesn’t affect their salaries one bit; that is paid by taxes collected in the county-oh, and Federal funding, too.
County and state employees may have to help fund their own retirement (most in the private sector do), the county/city may have to start funding their employee’s retirements separate from the FRS, or the employees will have no retirement.
Maybe it’s time we prioritize just exactly what government services we need and fund only those services we can afford, i.e., law enforcement and the courts. That’s just about it. The local school board should fund the schools. Government is here to protect us, not to take care of us from cradle to grave, to build parks, and the like.
If some non-necessary state/local positions go away, so be it. Those employees who are displaced have a choice-sit and whine or go find employment in the private sector where pay and benefits are better.
“So now instead of working , the people of florida will be supporting 8,681 new people”
On the contrary, the 8,681 people who had unnecessary “jobs” (who were already being supported by the working tax payer), will now go get jobs that will allow them to suport themselves.
Now you have 8,681 more people that will be on unemployment and possible welfare due to lack of jobs
So now instead of working , the people of florida will be supporting 8,681 new people
For all you whiners on here. Get over it!! If his plans keep me from paying more taxes by cutting government spending, and cutting out programs that only assist the lazy. Then I would vote for him again.
■SW on February 8th, 2011 10:11 am
@ me
“The protect and serve thing is a local function, i.e., county sheriff, city police, not a
state function.”
For future information to those who do not know better….Your ECSO is under the FRS pension. So this is cuts to your local function SW.
We now have a Govenor that holds a grudge. The two organizations he has attacked the most did not support him in the election. Imagine that!. Agree with me or I will cut your budjects to where it hurts. I still wondering why someone would spend 70+ million of his own money to get a job that pay’s $150.00.00. The math does not add up here. Is it because he wants to get his hands on that retirement fund or some how control heath care or maybe the prison system. Only time will tell but theres got to be something in it for him. People like him are only thinking numbers and profits. Like most of the crooks up there in Tallahassee it’s all about them and nothing for the working man/woman
@ me
I have no problem with the creation of more private sector jobs. Those don’t drive up my taxes!
The protect and serve thing is a local function, i.e., county sheriff, city police, not a state function.
This is what the biggest fraudster of Florida, who avoided prosecution, will do for us if elected to governor. Now we will reap what we sow. This guy is rich so our loses will not bother him. It hits home too. Our sheriff is in his pocket. He is on his transition team. He will give him everything he wants to benefit himself. The northend is already suffering. Check this out, did you know that Molino suffers if two deputies call in sick at the same time. How? Because that is the total number of deputies assigned to each shift ( A deputy friend confirmed this for me ). That means that there would be little to no law enforcement from 9 mile rd to century. Doesn’t make me feel safe. The sheriff will continue cuts too, and as usual, the northend will suffer more.
“…reeks with bias…”? What I read had a lot of facts.
Maybe if ol’ Guv would allow more press access we’d get the “transparent” government in the “sunshine (law)” we’re supposed to get.
As a native Floridian I have seen the State budget skyrocket out of control. I am glad someone has finally stepped up to do something about it. Most if not all of the 8000 jobs will be through retirement not being replaced/filled.
I had to cut my workforce because I could not maintain pre-recession rates, the state is no different. WE MUST LIVE WITH-IN OUR MEANS!
On this so-called drug testing of welfare recipients issue, the welfare recipients in this state are actually the elderly in nursing homes. Over 60% of the medicaid budget goes to nursing home care for the elderly that you do not want in your home.. They will certainly have drugs in their bodies. Maybe Scott actually woke up and read the State’s budget proposals and saw who was actually using the Medicaid bucks. It is not who you always thought.
What do you expect from a guy who pled the 5 th over 70 times in an investigation of his business practice. I didnt vote for this crook, and if you did….. then cograts. There is a lot more to come.
This article reeks with bias – Total FAIL Mr. John Kennedy! You really need to go back and take that Journalism 101 class again. This is not journalism!
Maybe my memory doesn’t serve me correctly, but I thought ONE of his campaign promises was to create MORE jobs! Oh, yeah maybe that was through private businesses. Wonder who’s going to protect and serve these new businesses? Guess he was scared to announce all of this in Tallahassee! PS: I voted for Sink. Sorry others couldn’t see through him as well, it’s going to be a long 4 years!
None of us likes the thought of having less money in our budget but we can be certain the budget we have isn’t working for us so I agree we should not be quick to complain. Something HAS to change and change isn’t always comfortable or easy.
More than double his own budget and closing 2 prisons and people losing their jobs? And yea, what about the drug testing for the baby makers here. Now this is a budget I can live with. NOT!!!!
@ fedup:
Let’s give him a little more time. I hope and believe that he will come through…..
Did not hear anything about drug testing people who recieve welfare checks.We,the working people must pass one to keep our jobs!Scott campaigned that this would happen,just another lie from polotics.We could save millions of $$$$ if he would keep his promise.