State Budget Cuts Affect Education and Health Care (FL)

May 7, 2010

 The recently passed Florida State Budget focused mostly on debate over cuts in spending. More than $15 billion is federal stimulus money will disappear in 2011, leaving gaping gaps in programs that finance education and health care. A Medicaid overhaul that failed this year, will likely be revisited.

 State and local funding for K-12 will increase by $1.22 per student, which is about 4% below peak funding. State funding was increased to help offset a drop in local property taxes, cause by declining home values.

 Tuition will be increased 8 percent for community colleges and colleges. Universities will also be raised 8 percent, with the option to increase fees by an additional 15 percent.

 The Bright Futures Scholarship Program will be subject to higher test scores, while the award will drop $1 per credit hour, affecting roughly 184,000 students who receive Bright Futures aid.

 Health care funding will increase 9.35 percent, as more than 300,000 people will be eligible for Medicaid, bringing the total to nearly 3 million. Reimbursements to hospitals and nursing homes will be cut 7 percent.

 The state plans to draw over $500 million from trust funds to make up for budget shortfalls, including $174 million from the affordable housing fund and $170 million from the transportation trust.

 On a positive note, curbed growth of the prison population is expected to save nearly $23 million and funding for the Florida Forever land buying program will be resumed, though at a reduced rate. The state is hoping for a six-month extension of additional stimulus for Medicaid, that could then be used to offset some of the shortfall. Governor Crist expressed particular concern for cuts to substance abuse and mental health programs.