$10.2B federal windfall has lawmakers flummoxed
TALLAHASSEE — Florida lawmakers seeking to wrap up their session on time next week have an unprecedented problem: A $10.2 billion windfall coming from Washington that they haven’t yet figured out how to spend.
Roads, environmental clean-up projects and school construction projects could get more cash from the federal COVID-19 relief funds. All of those ideas have been floated by House or Senate budget negotiators trying to come to the final agreement on a spending plan that is likely to top $100 billion for the first time in state history.
But there is one area that GOP legislative leaders haven’t targeted yet for the relief funds spurred by a pandemic that has taken more than 35,000 lives in the state: health care.
That decision has upset Senate Democrats, who want to use the money to expand Medicaid, rent payments, affordable housing and $1,000 payments to workers in the tourism and hospitality industry who lost their job last year because of the COVID-19 crisis.
Senate Democratic Leader Gary Farmer of Lighthouse Point said his party’s plan “directs aid to those who have borne some of the highest costs during this pandemic but remain largely forgotten.”
GOP leaders have rejected Medicaid expansion and initially moved ahead with cuts to Medicaid reimbursement rates by more than $250 million because they were facing a $2 billion shortfall. But with the injection of federal aid and rosier revenue forecasts from state economists, the status of budget talks flipped, and now lawmakers must decide how to spend a windfall.
Still, Senate President Wilton
Simpson, R-Trilby, has warned the federal largess is one-time money and so shouldn’t be spent on permanent spending or programs, which would then face cuts in future years when federal funding stopped. Plus, the pandemic relief laws passed by Congress already included rent relief and stimulus checks so similar payments by the state aren’t necessary, he said.
“As it relates to rent relief or things that nature, the federal government is pouring really billions of dollars in these areas,” Simpson said. “So what we’ve talked about with ours is these one-time dynamic type projects that will be stimulative towards the economy.”
The Senate unveiled their plans for the federal money Wednesday, but only outlined $3.4 billion in spending, including $2 billion for transportation projects, $500 million for projects to move homes from septic to sewer systems, $300 million for a state land conservation program and $264 million for school construction and maintenance projects.
So far, the only agreement with the House on the money is the $2 billion in road funds.
House leaders want to spend much more, including $3.5 billion on deferred maintenance of state buildings and $1 billion for an emergency response fund.
Any unused funds would go into the state’s reserves.
Simpson said some direct cash for first responders and educators, as recommended by Gov. Ron DeSantis in his proposal for how to spend the federal money are still part of the ongoing negotiations. DeSantis called for $1,000 bonuses for police, firefighters, paramedics, teachers and principals last month.
“It is still in the mix,” said Sen. Kelli Stargel, R-Lakeland, the top Senate budget writer. “It is a priority to make sure we recognize our teachers.”
The legislative session is scheduled to end April 30, and the House and Senate must agree to a final spending plan by Tuesday to meet the constitutionally required 72-hour cooling-off period before it can be voted on to avoid going into overtime.