New estimate ups stimulus to $13.4B
TALLAHASSEE (AP) – A new estimate Wednesday indicated Florida will get more federal stimulus money than previously anticipated but less of it that can be used in the state budget.
State officials now are expected $13.4 billion – $1.2 billion more than previously forecast – over three fiscal years, but only $10.7 billion can be spread over budgets in that span.
The difference is due to increased unemployment compensation benefits, including an added $25 a week already in effect, and a $29-per-month increase in food stamp benefits on April 1 on top of $217 now paid out.
“It may not sound like much, but for a family that may be four meals, five meals,” said Department of Children & Families Secretary George Sheldon.
Education Commissioner Eric Smith, meanwhile, told a House panel it will be Friday at the earliest before the federal government sends down guidelines on the education portion of the stimulus. That includes criteria for a waiver Florida will need from U.S. Education Secretary Arne Duncan because state spending on public schools has declined since the 2005-06 budget year.
“We do know at this point the waiver is contingent upon maintaining at least the same percentage of support for elementary and secondary education within the total state budget as the prior year,” Smith said.
Although state school funding is down, overall spending, including local tax dollars, is up: $6,860 per student now compared to $6,155 in 2005-06.
Smith told the House Appropriations Council on Education & Economic Development that $2.7 billion in education stimulus money Florida expects if the waiver is granted would be a “bridge” to tide the state over until the economy improves and state revenues pick up.
“My concern is that it’s a bridge to nowhere and that we’re still just going to fall off the end after the two years,” said Rep. John Legg, R-Port Richey.
Many of the Republican lawmakers who control both chambers of the Legislature have expressed similar reservations about using the stimulus money on day-to-day expenses such as salaries of teachers and state employees. The state could be facing huge deficits if the economy doesn’t turn around and the federal spigot runs dry.
Some have suggested it may be better to turn down at least some of the stimulus cash.
Gov. Charlie Crist, a vocal stimulus supporter, remained unfazed at a meeting on the stimulus plan with agency heads and other officials. He said “common sense” will prevail and lawmakers will come around.
“At the end of the day you really don’t have a whole lot of choices,” Crist said. “The other choices besides using the stimulus money are not that great. My friends in the House and Senate are smart.”
Crist’s budget director Jerry McDaniel said some initial resistance to accepting stimulus dollars is going away.
University of North Florida President John Delaney, who is heading the State University System until a new chancellor is selected, said the 11 schools each have compiled list of “shovel ready” projects.
“We’re optimistic we’re lining up the construction projects, the research projects, etc., to be able to move quickly when the details are finally established,” Delaney said.
Department of Transportation Secretary Stephanie Kopelousos said her agency hoped to finalize its project list by next week. The state expects to get nearly $1.4 billion in stimulus money for road building and other transportation projects.
Officials, however, acknowledged some parts of the stimulus package will require changes in the state laws, including those on unemployment compensation.