TALLAHASSEE — As he enters his final two years in office, Gov. Rick Scott rolled out a proposed budget Tuesday that bears a strong resemblance to the ones he’s drafted in previous years.
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His $83.5 billion proposal — $1.1 billion more than this year’s budget — was vintage Scott: stuffed with tax cuts for businesses, millions for corporations to create jobs, millions for tourism marketing and an uptick in education spending financed mainly by homeowners.
But this time Scott faces a deep philosophical divide with state lawmakers that threatens to wipe out much of Scott’s agenda.
During the Associated Press’ annual state legislative preview with the state’s political reporters and editors, Scott made his pitch only to have it challenged later by legislative leaders. House Speaker Richard Corcoran, R-Land O’Lakes. declared that Scott’s touted job incentives were unlikely and that the state budget should be $1 billion less than what the governor proposed. Senate President Joe Negron repeated his wish to improve higher education and to finance a $2.4 billion land purchase to improve water quality, measures that conflict with Scott’s aims.
Scott said he knows what is best for creating jobs in Florida, the centerpiece of his campaigns for governor in both 2010 and 2014.
"When jobs are created, it helps the poorest, most disadvantaged families who need a job the most," Scott said.
Scott tried to counter Corcoran’s opposition without mentioning him by name.
"I believe that those who oppose investing in growing businesses, simply don’t understand how businesses work," Scott said. "We need to compete for jobs here in Florida so we can diversify our economy for generations to come."
Scott’s proposes to cut $618 million in taxes mostly for businesses, Klasbahis boost education funding by $815 million, restore $85 million for his job creation incentive program and dedicate another $76 million to Visit Florida marketing programs.
But that education funding would get paid by homeowners as property tax revenue grows with rising home values. That increased revenue would account for nearly $558 million of the extra dollars in Scott’s plan.
"If we’re going to make Florida the best state for future generations we have to invest in our students," Scott said, insisting the increased taxes from home values was not a tax increase.
Corcoran said the idea will not fly in the Legislature because many lawmakers see it as a tax increase.
"We’re not raising taxes," Corcoran said.
Similarly, Scott defended spending for Visit Florida amid growing criticism from Corcoran over the agency’s spending, which has included millions on contracts with a race car team, a British soccer team and music star Pitbull.
"We have to continue marketing Florida," Scott said. "We cannot let up. Anyone who thinks otherwise is turning their back on valuable jobs."
But Corcoran in a separate presentation later, referred to the spending at Visit Florida and Enterprise Florida, which directs the job incentive spending, to turning on the lights in the kitchen and finding an infestation of cockroaches.
"I don’t mean this in a disparaging way to anybody, but there’s cockroaches everywhere," he said. "Bonuses, severance packages, furniture, trips."
On health care, Scott, who spent much of last year feuding with hospitals over what he deemed "price-gouging" and too-high profits, wants to rewrite Medicaid rules to reduce hospital payouts by $929 million.
He plans lower rates for Medicaid, which his budget office deems "more efficient" and reduced reimbursements for hospitals he says are earning too much money and charitably treating too few uninsured patients.
Medicaid is by far the most costly program in the budget, making up nearly one-third of taxpayers’ annual expense.
The potential budget differences with the Legislature is not good news for Scott. While Scott is required by law to propose a budget, the Legislature is solely charged with writing the budget and need not follow any of Scott’s recommendations. Scott does have the power to veto the budget or individual items.
Times/Herald reporters Michael Auslen, Steve Bousquet and Kristen M. Clark contributed to this story.
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