Florida Lawmakers Pass $70 Billion Budget

BRADENTON, Fla. — The Florida Legislature ended its 60-day session late Friday after passing a $70 billion budget for fiscal 2013.

If approved without line-item vetoes by Gov. Rick Scott, the budget would be 1% higher than the current spending plan. The biggest increase will be in the general revenue fund, which totals $24.8 billion, or $1.6 billion higher than this year’s budget.

Without raising taxes, the Republican-led Legislature put $2 billion in reserves and nearly $1 billion of extra funding in K-12 schools, which had been cut by $1.3 billion last year.

State universities lost $300 million in funding and were required to spend $150 million of reserves. Students also face increased tuition costs for another year. Cuts were also made to hospitals and nursing homes, some as a result of the GOP’s rejection of more than $450 million tied to the federal health care reform act.

Approximately $250 million of bonds was authorized inthe new budget.

The Legislature did not act on bills reducing the size of Citizens Property Insurance Corp. and the Florida Hurricane Catastrophe Fund, two state-run nonprofit insurers. However, they did pass a proposal, just a day before the session ended, authorizing a $1.5 billion tax credit for private insurance companies with the proceeds going to the so-called Cat Fund to reduce its reliance on the bond market.

The measure was advanced by Senate budget chairman J.D. Alexander, R-Lake Wales, who said the program was proposed to him by a “big” investment bank whose name he could not recall during a press conference.

Under the program, the State Board of Administration would sell the tax credits to insurance companies against their insurance-premium or corporate-income taxes. The money raised would go to the so-called Cat Fund, which provides low-cost property reinsurance to insurers.

The Legislature did not address pension reform, which was struck down by Leon County Circuit Court Judge Jackie Fulford last week. Fulford sided with the Florida Education Association’s suit, which argued that lawmakers last year illegally required state employees and teachers to contribute 3% of their wages to the state pension plan.

Fulford said that the state pension plan is considered a contract in state law, and any changes can only apply to new employees. State officials said they would appeal.

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