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HomeMy Public PortalAboutLTC 129-2015 - 2015 Florida Legislative Special Session Final ReportSAL OUR F L O R I D A, S P A R AD I S E OFFICE OF THE VILLAGE MANAGER NO. 129-2015 LETTER TO COUNCIL TO: Mayor Martin Packer and Members of the Village Council FROM: Jorge M. Gonzalez, Village Manager DATE: July 24, 2015 SUBJECT: 2015 Florida Legislative Special Session Final Report The purpose of this Letter to Council (LTC) is to transmit the attached 2015 Florida Legislative Special Session Final Report provided by Ron L. Book. Please let me know if you need additional information. jgonzalez@balharbour.org From: Rana Brown <Rana@rlbookpa.com> Sent: Monday, July 20, 2015 6:26 PM To: jgonzalez@balharbour.org; prodriguez@balharbour.org Subject: Final Special Session A Report Attachments: Special Session 2015 A Report Bal Harbour Village.pdf Dear Mr. Manager, Enclosed please find a final report on the 2015 Special Session A, relating to Florida's budget. As you know, this has been a particularly busy year for the Legislature, and we are far from done. The recent ruling by the Florida Supreme Court, in which 8 congressional districts were found unconstitutional, will require the Legislature to redraw those districts in a special session. Today, the House and Senate released a joint proclamation calling for a special session to redraw, present and approve new maps. Special Session B is scheduled to begin August 10 and will run through August 21. More details on the redistricting issue can be found in the report. Additionally, please note that the 2016 legislative session begins early next year. It is scheduled to begin January 12 to March 11. As a result, interim committee meetings have also been moved up. The Legislature is currently scheduled to hold committee meetings on the following dates: • Wednesday, September 16 through Friday, September 18 • Monday, October 5 through Friday, October 9 • Monday, October 19 through Friday, October 23 • Monday, November 2 through Friday, November 6 • Monday, November 16 through Friday, November 20 • Monday, November 30 through Friday, December 4 Given the tightened schedule, we encourage you and your staff to begin reviewing your priorities and prepare your legislative agenda sooner than usual. We are prepared to meet with you and your staff to assist in this process. We are available for workshops, strategy sessions or Village appearances, as appropriate. As always, we are proud to have the opportunity to work with you and look forward to assisting you this interim. Romid L Book, P R il'J O0103 Wiliffoll t A40491100 Ronald L. Book Ronald L. Book, P.A. Harbour Centre 18851 N.E. 29th Ave., Ste. 1010 Aventura, FL 33180 Phone: 305.935.1866 TLH Office: 850.224.3427 Email: ron .rlbook as com Kelly C. Mallette Ronald L. Book, P.A. Harbour Centre 18851 N.E. 29th Ave., Ste. 1010 Aventura, FL 33180 Phone: 305.935.1866 TLH Office: 850.224.3427 Email: kelly@rlbookpa.com Rana G. Brown Ronald L. Book, P.A. Harbour Centre 18851 N.E. 29th Ave., Ste. 1010 Aventura, FL 33180 Phone: 305.935.1866 TLH Office: 850.224.3427 Email: rana@rlbookpa.com Ronald L. Book, P R. low O MM PROf(S NK CO(I1IN MEMORANDUM TO: Jorge Gonzalez, Village Manager Bal Harbour Village FROM: Ronald L. Book, Esq. Rana G. Brown Kelly C. Mallette DATE: July 20, 2015 RE: Final Special Session 2015 A Report June marked the end of a particularly long legislative season, with Legislators meeting in a special session to complete Florida's budget. After 19 days of tense negotiations, and with the regular session behind them, they passed a budget just over $78.7 billion, which included increases in per student funding in education, a $400 million tax cut package and $450 million in funds to support hospitals and community health care providers as a result of the reduction in the federal Low Income Pool (LIP). The Florida Senate introduced their Medicaid expansion plan, which was ultimately rejected by the House on a floor vote. Several health care reforms proposed by the House were not considered by the Senate and died without even a hearing. Having adjourned one day early, on June 19, the presiding officers signed the budget and delivered the it to the Governor the very same day. The Governor completed an expedited review of the budget and chose to veto a record number of local projects and a record amount of dollars, totaling $461,387,164. The veto message was 85 pages long. Senators, in particular, were shocked by the Governor's actions, and many communities upset to see their projects lost to the Governor's red pen. The vetoes certainly will not improve an already strained relationship between the Senate and the Governor, which will surely make for an interesting interim. Meanwhile, the Florida Supreme Court recently released their decision to reject several of the congressional districts drawn by Legislature during redistricting. The Court ordered the Legislature to redraw the districts within 100 days, and today a special session was called to redraw these districts. The session will be 12 days, beginning August 10 through August 21. As the Legislature attempts to redraw these 8 seats, there could likely be changes to 14 border districts, impacting a total of 22 seats. The decision could have a ripple effect throughout Florida politics, throwing the Republican held balance of power of Florida's congressional delegation into question. The Court is currently reviewing a separate case related to 28 of Florida's 40 Senate districts. A ruling is expected in the coming months. Harbour Centre[ 18851 N.8.29th Ave., Ste. 1010 1 Aventura, FL 33180 Phone: 305.935.1866 1 Fax: 305.935.9737 104 West Jefferson Street I Tallahassee, FL 32301 Phone: 850.224.3427 1 Fax 850.224.3361 BUDGET SUMMARY The 2015-16 Florida budget reflects the priorities of Florida's leaders: $400 million in tax cuts and increased finding for education, a high priority of Governor Scott; increased funding for programs to assist people with disabilities, specifically, developmental disabilities, a priority of Senate President Andy Gardiner; and acquisition and maintenance of state lands and water resources, a high priority for House Speaker Steve Crisafulli. Investments were also made in the area of economic growth and development, targeting continued growth in the agriculture and tourism industries. Lawmakers also managed to set aside $3 billion in reserves. Below please find summaries on major budget areas. Should you need further information on any subject within this report, we would be happy to provide that to you. HEALTH CARE While the primary purpose of the special session was to craft and approve the state budget, it was health care issues that dominated the day. The Senate's Medicaid expansion proposal, known as the Florida Health Insurance Affordability Exchange (FHIX), was included in the joint special session proclamation, along with several health reforms proposed by the House, including: • Elimination of the hospital certificate of need (CON) program; • Expansion of prescribing authority for registered nurse practitioners and physician assistants; • Authorization for ambulatory surgical and other non -hospital facilities to keep patients as long as 72 hours. Creation of a new licensure category called a recovery care center. • Authorization for patients to enter into contracts with primary care providers and pay them directly for specified services. The House ultimately rejected the Senate's FHIX plan, and the Senate never considered the House's reform proposals. However, these substantive issues were really secondary to resolving the shortfall in Florida's Low Income Pool (LIP ) program. After months of tense negotiations between the House and Senate, the Governor and the Centers for Medicare and Medicaid Services (CMS), lawmakers began their budget conference negotiations with an understanding that CMS would renew Florida's LIP program but with significant reductions that could have been catastrophic to the safety net hospitals. The LIP program is the program that funds uncompensated care for low income patients at hospitals throughout the state. That crisis, however, was averted when the House and Senate agreed to allocate $400 million in general revenue to offset losses in LIP. An additional $50 million was approved for community safety nets like Federally Qualified Health Centers (FQHC) that also benefit from the program. The Legislature's decision to add revenues to support the program ensured that the hospitals who handle the largest share of uncompensated care were largely kept whole. Since the close of the session, CMS has approved Florida's LIP waiver, but funds from the federal government will decrease again next year, to approximately $600 million, which is an additional reduction of $400 million from this year's allocation. The Governor has appointed a commission to review hospital funding and profits while the Senate has called for ajoint task force on health care policy innovation. Other areas of the health care budget that were high priorities this session were funding for services for individuals with developmental disabilities and funding for child welfare. Record funds were provided to the Agency for Persons with Disabilities to reduce the waitlist for services. Those funds will eliminate the critical needs portion of the list in its entirety and serve those transitioning out of school. Funding for the 2- waitlist was a high priority for Senate President Andy Gardiner, along with a host of other programs serving the developmentally disabled, including: • Additional staffing for developmental disability centers; • Personal supports rate increase; • Support coordination rate increase; • Additional $10 million to serve approximately 16,000 individuals in the early steps program. The Legislature approved an additional $16.2 million in funds to support community based care agencies in providing direct child welfare services. Other highlights of the children and families budget include: • $3.9 million increase for healthy families; • $2.2 million for five safe houses to serve victims of human trafficking; • $16 million for child welfare training. $2.4 million in new funding to implement evidence -based practices for treating parent's mental health and substance abuse disorders, which often put children at -risk for abuse and neglect; • $3.9 million increase for Healthy Families to expand home visiting services for expectant and new parents whose children are at risk for abuse and neglect. In the elder affairs budget, lawmakers approved increases for community care for the elderly, a program that provides services to elderly at risk of nursing home placement. It also provides an additional $1.78 million in Alzheimer's respite services. Finally, the Legislature continued funding for a number of local elderly meal programs throughout the state. IW :QRDI MIlI0 The Legislature passed its omnibus tax cuts package as part of the overall budget during the special session. The bill (HB 33A) has a number of tax cuts and reductions which total approximately $400 million. This package, as approved, is considerably less in than the $800 million tax cut package that the Governor proposed during the regular session, which was a key part of his platform. The bill contains the following provisions: Communications Services Tax The CST rate is reduced by 1.73 percentage points, (a permanent reduction). This cut is substantially lower than the cuts proposed by the Governor. The standard rate is reduced from 6.65 percent to 4.92 percent, and the rate on direct -to -home satellite is reduced from 10.8 percent to 9.07 percent. The end result for a $100 per month cell phone bill, is a cut of about $20 a year, or $1.66 a month. o Of specific note, revenue distributions are revised in the bill to ensure that local governments continue to receive the same amount of distributions as they receive under current law. Enterprise Zones The bill preserves state incentives for businesses who currently hold a contract with the Department of Economic Opportunity, (DEO) (as of July 1, 2015), to continue to receive those state incentives. Through December 31, 2018. Back -to -School Holiday --The bill provides for a ten day sales tax holiday beginning August 7, 2015, and ending August 16, 2015. During the holiday, the following items that cost $100 or less are exempt from the state sales tax and county discretionary sales surtaxes: o Clothing (defined as an "article of wearing apparel intended to be worn on or about the human body," but excluding watches, watchbands, jewelry, umbrellas, and handkerchiefs) o Footwear (excluding skis, swim fins, roller blades, and skates) - 3 - o Wallets o Bags (including handbags, backpacks, fanny packs, and diaper bags, but excluding briefcases, suitcases, and other garment bags) o All school supplies that cost $15 or less per item o Also exempt will be the first $750 of the sales price for personal computers and related accessories purchased for noncommercial home or personal use. This would include tablets, laptops, monitors, input devices, and non -recreational software. (Cell phones, furniture and devices or software intended primarily for recreational use are not exempted.) o Also exempt are books used in regularly prescribed courses of study, yearbooks, magazines, newspapers, directories, bulletins, and similar publications o Schoollunches • For Higher Education, the bill includes the following: o Exemptions for the purchases of college textbooks from the sales tax beginning July 1, 2015, to June 30, 2016. (both hard cover as well as online/digital books) • Parent -teacher associations / parent -teacher organizations whose primary purpose is to raise funds for schools, may pay tax to their suppliers on the cost price of items in lieu of registering as a dealer, obtaining a Consumer's Certificate of Exemption, or collecting tax on their sales of the following taxable items: o School materials and supplies purchased, rented, or leased for resale or rental to students attending grades K through 12 o Items sold for fund raising purposes, such as candy, photographs, greeting cards, wrapping paper, and similar fund raising items o Items sold through vending machines located on the school premises o Food and beverages sold through vending machines located on school premises in locations other than the student lunchroom, student dining room, or other area specifically designated for student dining o Allows school support organizations to sell food, drink, and related supplies tax free by paying sales tax when they buy the items • Motor Vehicles/Members of the Military Provides a sales tax exemption for motor vehicles imported by active members of the United States military or their spouses for vehicles purchased and used for six months or more in a foreign country. • Gun Club Memberships Exempts admissions to and membership fees for gun clubs from the sales tax. • Increases the amount of tax credits available for Brownfield Rehabilitation from $5 million to $21.6 million for Fiscal Year 2015-2016. • Boat Repair the bill caps the amount of sales tax paid on repairs of a boat at $60,000. Additional tax cuts within this bill are as follows: • Expands the definition of a subdivision's "common elements" to include property located within the same county and used for at least 10 years exclusively for the benefit of lot owners within the subdivision. The effect of this is to apportion the value of property to the subdivision's parcels for property tax purposes. • Creates a permanent tax exemption for the portion of title insurance premiums retained by a title insurance agent or agency, if title insurance companies add at least 600 new employees by July 1, 2017. • Provides a tax exemption for aviation fuel used for Bight training purposes by certain educational institutions. • Exempts aquacultural products and feed for aquacultural products from sales tax. Expands the farm equipment sales tax exemption to include storage equipment, irrigation equipment, parts and repairs, trailers, and plant stakes. Research and Development Credits The bill increases the total amount of credits that may be awarded during calendar year 2016 from $9 million to $23 million. It also provides that in the event applications for more than the annual cap are received, the credits shall be distributed on a pro rata basis rather than in the order applications are received. Credit eligibility is also restricted to businesses to in the following Qualified Target Industries: o Manufacturing o Life Sciences o Infotech o Aviation & Aerospace o Homeland Security & Defense o Cloud IT o Marine Sciences o Materials Science o Nanotechnology This bill was approved by the Governor and took effect July I, 2015 EDUCATION The Florida Legislature provided record $19.7 billion for Education. The Florida Education Finance Program (FEFP) increased by approximately $780 million, which amounts to $7,096.96 per student, an increase of $207 per student. Other highlights of the Pre-K - 12 budget include: K-12 School Capital Funds: Provides $50 million in funding for charter school facilities, $50 million for maintenance at traditional K-12 public schools, and $10.5 million for other education capital projects. Early Learning/VPK/School Readiness: The early learning budget provides $389.3 million toward the Voluntary Pre-K program, which equates to level funding per student. A decrease in the overall total is realized due to a projected decline in enrollment. The School Readiness program was increased by $5 million to provide an additional 1,000 childcare slots. The budget also includes $10.5 million for an early learning performance pilot program to award child care providers and instructors for improving quality. Personal Learning Scholarship Accounts: $55 million in funds to expand eligibility for the program which allows parents of children with special needs to customize education plans. HIGHER EDUCATION The higher education budget includes no tuition increases and provides an historic total level of funding of $4.5 billion for state universities, which is an increase of $178.2 million. Additional highlights in the Higher Education budget include: $51.3 million in new funding for state colleges; $3,000 per student for the Florida Resident Access Grant; • $5.5 million increase for the Florida National Merit Scholarships for a projected increase in the number of qualifying students; $26.4 million reduction in the Bright Futures program due to a decline in the estimated number of students. - 5 - TRANSPORTATION, TOURISM & ECONOMIC DEVELOPMENT The transportation budget passed by the Legislature totaled approximately $10.1 billion in funding for the Florida Department of Transportation and $447.7 million for the Department of Highway Safety and Motor Vehicles, with most of FDOT's funding to go toward the department's $9.3 billion workplan to improve and repair Florida's highway infrastructure. The Legislature funded the DOT Workplan with $9.3 billion, allowing it to revitalize Florida's road and highway system, including repaving and resurfacing for thousands of miles of roadway. The Governor did veto approximately $56 million worth of projects, within the Department of Transportation budget, including $10 million to upgrade railways across the state into "quiet zones" through which trains would not be legally required to sound their horns with the inclusion of advance safety measures. The Legislature also created a Sun Trail Network, which creates a statewide network of multi -use trails for biking and walking, to be funded through a newly created New Wheels Fee, from the funds charged when a motor vehicles is registered for the first time. Other highlights of the transportation budget include: • $35 million for Economic Development Transportation Projects (Road Fund) • $3.7 billion to expand transportation system capacity, including adding 292 new lane miles • $633.6 million for resurfacing, more than 2,493 lane miles • $369 million for aviation improvements • $244.8 million for scheduled repairs of 94 bridges and replacement of 16 bridges • $146 million in seaport infrastructure improvements Economic Development The budget provides approximately $203.1 million for Florida's economic development public -partnerships, as well as $8.5 million to market opportunity in Florida throughout the country and the world. Quick Response Training (QRT) Program is funded at $12.1 million. The QRT Program provides businesses in targeted industries with matching funds related to training activities for workers who will be moving into new jobs in Florida. Tourism funding includes a total of $74 million for Visit Florida. For every dollar invested in Visit Florida, the state saw a return of $3.20. I_AMIA 111410151 II►Y I Dominating budget allocations for environmental projects throughout the 2015 Regular Session and especially Special Session A in June, was the Florida Water and Land Conservation Initiative, Amendment 1, which overwhelmingly passed with just under 75% of the vote, in November of 2014. Interpretation of Amendment I by the House and Senate leadership was in contrast with that of the many active environmental groups. As a result, House and Senate leaders did not resolve this area of the budget until the final stretch of the budget conference. Legislative leadership prevailed, putting more funding into a wider variety of areas, noted below. Painting with a broad brush, the Legislature looked to the official ballot summary for guidance, which states that Amendment 1 funds should be used ... "to acquire, restore, improve, and manage conservation lands including wetlands and forests; fish and wildlife habitat; WOE lands protecting water resources and drinking water sources, including the Everglades, and the water quality of rivers, lakes, and streams; beaches and shores; outdoor recreational lands; working farms and ranches; and historic or geologic sites, ... for 20 years." Funding within the budget totals approximately $750 million, for what the Legislature has deemed Amendment I related programs and projects. A lawsuit was filed shortly after the Special Session A ended, by three environmental groups, asserting that the legislature budgeted funds toward unrelated functions, therefore is not legal. This issue will continue to develop over the next several months, if not years. Other items of interest within this budget, include: Environmental funding includes more than $3 billion dollars to protect our agricultural and natural resources. The budget includes over $740 million for Florida's Land Acquisition Trust Fund to support land and water programs. Protecting Florida Springs The budget provides $45 million in funding for Springs protection and restoration projects. Protecting Florida's Everglades Everglades restoration projects received more than $106 million in funding. Land Acquisition and Management The budget provides for $71 .5 million in land management and land acquisition funding, including $17.4 million in new dollars for the Division of State Lands within the Department of Environmental Protection, $15 million for the Rural and Family Lands Program within the Department of Agriculture and Consumer Services, $5.5 million for the Florida Recreation Development Assistance Program (FRDAP) and $33.6 million for additional land management. State Park Facility Improvements is funded at approximately $24 million for repairs and renovations to Florida's nationally recognized state park facilities, including $4 million to continue to bring state park facilities into compliance with the Americans with Disabilities Act (ADA). Beach Renourishment The budget invests $32 million toward financial assistance to local governments for beach and dune restoration, and beach nourishment. Wastewater Treatment Facility Construction The budget provides $223.3 million for low interest loans to local governments for the construction of wastewater treatment and stonnwater management systems, including collection and transmission sewers, reclaimed water (reuse) systems, and a variety of other facilities and activities through the Clean Water State Revolving Fund. Drinking Water Facility Construction The budget provides $91 million for low interest loans to local governments and certain other utilities for construction of drinking water systems, including treatment, storage and distribution facilities. Water Protection Projects The budget provides $47 million for local water projects to assist local governments with investing in local water resources and enhancing the quality of water that families receive. Petroleum Storage Tank Cleanup The budget provides $132 million for the cleanup of petroleum storage tank discharges. This includes an increase of $7 million for local government cleanup contracting. -7- Contaminated Site Cleanup The budget also provides $6 .5 million to cleanup properties and groundwater contaminated with dry-cleaning solvent discharges. CRIMINAL JUSTICE After a newspaper series outlining abuse and neglect in Florida's prison system, lawmakers proposed a substantive Corrections reform package during the regular session. That package died in the final hours of the session, when the Florida House adjourned 3 days early, leaving several matters languishing on the calendar. Legislators had an opportunity to respond during regular session, and agreed to a increase of approximately $52 million for the Corrections Department, the majority of which was earmarked for additional staffing. Funds were also included for capital repairs to address critical infrastructure needs. In the Courts budget, the Legislature approved an increase of approximately $15 million to close a shortfall that resulted from a decline in revenue derived from foreclosure filing fees. However, they did not agree to 35 additional judgeships. While the Legislature increased funding to the Courts, they did not provide additional revenues to the Clerks of Court, who are facing a deficit due to the decline in foreclosure filing fees and traffic fines. The Clerks budget, which is handled outside of the general appropriations process, has a deficit of approximately $22 million. Since the session, many clerks around the state are addressing the deficit through layoffs and other cuts. Other items of interest in the Criminal Justice budget, include: Prison Funding and Maintenance the budget includes $16.5 million to fill critical vacant positions within Florida's prisons and an additional $500,000 to contract with community colleges to train new correctional officers. The budget also provides $10 million for critical maintenance and repair of prison facilities. Funding for Reduced Recidivism The budget invests $13.2 million in reentry programs with proven track records to reduce the number of inmates going back to prison. The budget makes the following investments to keep recidivism low in Florida: An additional $1.9 million which will fund approximately 75 additional community based residential substance abuse co-occurring beds; An additional investment of $1.7 million for job training and placement for current and newly released inmates through Operation New Hope, Ready4Work, the Broward County Sheriffs Inmate Portal Reentry program, and Home Builder's Institute vocational programs. Juvenile Justice Reforms The budget expands prevention and treatment programs to more at risk youth, including the following: • An additional $2.1 million to increase capacity in existing PACE Centers for Girls across the state; • An additional $3.3 million for the Associated Marine Institute to provide gender -specific programming and in -home counseling services to at -risk and delinquent youth; and • An additional $3 million for Boys and Girls Clubs to provide delinquency prevention programs to over 16,000 youth at risk of entering the juvenile justice system, and $1.5 million for the Big Brothers Big Sisters programs targeting 1,200 at risk youth. Child Advocacy Centers / Preventing Abuse and Violence The budget provides $4 million for the continued funding of the 26 child advocacy centers statewide that provide services to victims of child abuse and neglect. Human Trafficking The budget includes $2.2 million for five safe houses across the state, to provide more emergency and long-term shelter to victims of human trafficking while they recover from commercial sexual exploitation and receive rehabilitative services to help integrate them back into their communities. .m