Article
Courtesy of The Miami Herald
By
Mary Ellen Klas
Published February 14, 2016
Something strange was happening in the halls of the
Republican-led Legislature as it passed the halfway point of its annual
session last week.
With a budget flush with more than $1 billion of additional revenue,
lawmakers are locked in a debate over whether to back a budget that restores
$1 billion in cuts to the state’s tattered safety net for the state’s most
vulnerable children, disabled and elderly — as the state Senate proposes —
or returns it to taxpayers in the form of tax cuts, as the House and Gov.
Rick Scott propose.
Gov. Rick Scott holds up his red veto pen to make a point during remarks
before signing the state budget, during an outdoor ceremony in The Villages,
May 26, 2011.
Gov. Rick Scott holds up his red veto pen to make a point during remarks
before signing the state budget, during an outdoor ceremony in The Villages,
May 26, 2011. Joe Burbank - Orlando Sentinel
For Republicans who came to office reflexively touting less government and
lower taxes, it’s an uncommon debate to have, but Senate leaders are also
arguing something so unthinkable that few Republicans have uttered it
before: They are calling the governor’s tax cut proposal unsustainable and
irresponsible.
“Who is the most conservative, who is the most responsible individual — the
person who cuts the most taxes, or the person who lives within their means?”
asked Senate budget committee chairman Tom Lee, R-Brandon, on Thursday as he
defended his chamber’s $81 billion spending plan. The proposed Senate budget
includes no tax cuts but has $1 billion more in child welfare, education and
prevention programs than the House.
Lee told reporters: “We want to live within our means over here, and we
believe our outlook documents suggest that we would be betting the farm on a
high-level tax cut.”
“We’re actually looking at where there’s holes before you are cutting
taxes permanently. I don’t know if it’s a systemic shift or a timing issue
that’s been many years coming."
Rep. Jose Felix Diaz, R-Miami
Florida’s budget has rebounded since the Great Recession when lawmakers
stripped billions from its spending plans from 2008 to ’13 and revenues are
expected to be more than $10 billion higher than Scott’s first budget in
2011 — about $1 billion higher than last year. The new money presents
lawmakers with ample choices and, while they have not made restoring cuts to
programs a priority, the shifting conversation has lawmakers in both the
House and Senate reacting cautiously to the governor’s call for permanent
reductions in the state’s tax base.
Legislators and the governor tout the fact that in the last three years they
have restored most of the recession-forced cuts to K-12 education. What they
fail to note is that many social service programs that had been deeply cut,
or prevention programs that have long been neglected, remain close to below
their pre-recession levels.
The hardest hit were the programs with the fewest advocates — healthcare for
the poor, spending on the disabled, the elderly and at-risk children, and
the agencies that shoulder the unpopular job of policing prisoners.
Several House and Senate leaders interviewed by the Herald/Times say that
while there is support for restoring cuts to many programs, Republicans also
wrestle with a fundamental ideological question: Should the safety net be
government’s job?
“It seems like the more we send a message to society that they don’t have to
do their part, government will take it on,” Lee said. “And yet, if we fail
to invest in these children, we know they end up dropping out. They end up
in our criminal justice system. They end up in our social services programs.
We have this box canyon where you pay us now or you pay us later.”
Recurring reductions
The more conservative House is more willing to accept a permanent reduction
in the state’s revenue stream through tax cuts, but is proceeding
cautiously. The House rejected the governor’s biggest request — the
permanent elimination of corporate income taxes on manufacturers and
retailers, estimated to reduce state revenues $770 million a year — and on
Thursday voted to pass out a $1 billion package of wide-ranging tax cuts.
However, unsure of the state’s economic outlook, half of the House tax cuts
take effect for only one year.
“We’re actually looking at where there’s holes before you are cutting taxes
permanently,” said Rep. Jose Felix Diaz, R-Miami. “I don’t know if it’s a
systemic shift or a timing issue that’s been many years coming.”
When Lee, the Senate budget chairman, was Senate president from 2004 to ’06,
he initiated the constitutional amendment requiring lawmakers to prepare a
three-year financial plan to determine the long-term effects of their
short-term budget decisions. He now argues that the more time legislators
spend understanding the state’s budget process, the more cautious they
become.
“It’s easy when you’re campaigning to have these doctrinaire views, but then
once you become better educated and informed you realize that government
does have a role — albeit a limited one in people’s minds — and the question
is how do you get a return on investment for all these tax dollars that are
being given,” he said.
Lee said push back over tax cuts is a sign that Republicans who have
controlled state government in Tallahassee since 1996 have reached a
crossroads and must find a new message.
“It’s getting harder for Republicans to craft a narrative that defines their
public policy positions because we’ve been at this for 20 years and the
low-hanging fruit’s been picked,” he said. “We’ve cut taxes 50 times in the
last 20 years. That mail piece is already done ... What I think is it’s
important to focus on is the structural problems we’re facing in our
system.”
In November, Florida TaxWatch, the business-backed fiscal research group,
added fuel to the argument with a report on the long-term cost of the
state’s failure to properly invest in its child welfare system, “Challenges
Facings Florida’s Community-based Child Welfare System.”
It was unusual for the organization known for promoting business-backed tax
cuts and compiling an annual list of budget turkeys to do something rarely
seen in Tallahassee: connect the dots on the cost of the state’s failure to
provide a safety net for the state’s most vulnerable.
Turnover turmoil
But the TaxWatch report found that the state spends $14 million a year
training new child welfare workers because of a 37 percent turnover rate at
the Department of Children and Families, yet the cost to the children in
foster is much higher. Each child that spends a year in foster care costs
the state $70,000 and, because of staff turnover, many children stay in
foster care longer than they should.
When a child has four case workers, the odds that each child will find a
permanent home by the time he or she reaches 18 drop to four percent, the
report found. Once the child reaches age 18, the state doesn’t have an
obligation to pay for their care any longer but each child who ages out of
the foster care system has a one in four chance of getting arrested, a 50
percent higher chance of getting pregnant, a 33 percent chance of dropping
out of school and a 65 percent chance of becoming homeless.
“What is the cost of not investing? We have to keep in mind those are
people’s lives and the failure to invest in people is just unacceptable,”
said Robert Weissert, a TaxWatch researcher.
Meanwhile, subsidies to foster parents who adopt children have been cut to
levels lower than they were before the recession, and the number of at-risk
children has risen 14 percent.
If the report got any attention, you wouldn’t know it from the budget
roll-out last week by House and Senate leaders, none of whom mentioned the
correlation between child welfare and higher safety net costs. But Kurt
Kelly, president of the Florida Coalition for Children, says the resistance
to investing new money on the child welfare system is melting.
The House budget has set aside $7 million in recurring money to help hire
staff while the Senate has set aside $9 million. He said a financial
analysis found that the network of community-based care organizations for
child welfare is about $100 million short of where it should be to prevent
worse outcomes for children in its care.
“We don’t expect the Legislature to make all this up for one year but at
least with child welfare, they are listening to us now,” he said. “We’re
pleased with the initial budgets. It’s not quite what we need, but we may be
able to get additional resources.”
The same themes run through just about every area of the state’s safety net
and public safety programs: insufficient staffing levels leading to high
staff turnover; high staff turnover increasing the cost of training and
recruitment; training and recruitment costs draining the budget for staff
and leading to more turnover.
Three state audits have determined that budget cuts since 2010 have so
decimated staff and infrastructure at the Florida Department of Corrections,
which is responsible for nearly 100,000 inmates, that turnover is at close
to 50 percent, many state prisons are constantly violating safety rules and
the most dangerous prisons operate with staff with less than two years
experience. Neither the House nor Senate have provided the money needed to
fully staff the prison system, although each increases some funding.
Waiting lists
For the elderly awaiting state services, the numbers also are grim. Last
year, more than 6,000 people died while waiting for community-based
programs, seeking in-home care or long-term managed care, according to the
Department of Elder Affairs and obtained by Rep. Mark Pafford, D-West Palm
Beach. The result is expected to be another year in which more people leave
the list because of death than because they received services.
The proposed House and Senate budgets chip away at the waiting lists for the
disabled, child care, and long-term care for the elderly, but even with new
funding, 2016-17 is expected to be another year in which more elders leave
the lists because of death than because they received services.
If the House budget were to be approved, the waiting lists for the coming
year would include: 42,000 seeking Medicaid-funded long-term care; 35,000
waiting for community-based services; 19,000 children and adults with
disabilities who seek state services, and 65,000 children on waiting lists
for subsidized child care.
Child advocates say that one of the long-term costs of having so many
at-risk kids unable to get high-quality pre-school will have consequences
for a generation. The state’s Voluntary Pre-K program is funded at a lower
rate than it was when it was first implemented in 2005, resulting in less
effective results. The cost of bringing the program to pre-recession levels:
$45 million, or $2,700 per child. The House budget proposes increasing
funding by $12 million, while the Senate increases it $6 million.
“There is very clear research to show that a child who doesn’t read at grade
level by third grade has a 400 percent likelihood of not graduating high
school,” said Vance Aloupis, state director of the Children’s Movement. That
adds up to a loss in earnings and taxes of $260,000 per dropout, the
TaxWatch study found.
Based on 2014 FCAT scores, 43 percent of third graders in Florida public
schools were not reading at grade level, and 45 percent of 10th graders
could not read at grade level — leaving the next generation potentially
seriously unprepared for the workforce, Aloupis said.
“We have gotten into such a pattern of being reactionary that we fund
failure in a much bigger way than we fund prevention,” said Karen Woodall,
executive director of the Florida Center for Fiscal and Economic Policy, a
liberal, Tallahassee-based research group that has organized rallies and
lobbying efforts for years to encourage legislators to restore cuts to
social service programs.
Part of the reason lawmakers are slow to understand the need to restore
funding to programs is the recession hit Florida before the governor and
most of the Legislature came into office, said Diaz, the Miami Republican.
“Cutting taxes was fundamental in all our campaigns, and the budget grew
very quickly after having dipped,” he explained. “I think when there was a
ton of money, everybody tried to cut taxes in a big way, but we’re now
making sure we’re not just blindly cutting taxes.”
House budget chair, Rep. Richard Corcoran, R-Land O’Lakes, who has been
designated by Republicans to be the House speaker next year, said he
believes there never will be enough money to satisfy the advocates of the
state’s most vulnerable, but he wants to see the future budget process be
less project-based and more focused on “systemic funding for things that
have been funded and work.”
The governor, who was a newcomer to politics when he was first elected in
2010, used his State of the State speech in January to make a rare reference
to a government “safety net” noting that “the truth is, for those in dire
need, we need to provide a safety net.” But Scott also indicated he was
pleased with the state’s level of funding for those programs — then made the
case for the naysayers.
“Government assistance must be the very last resort, not the first,” the
governor told lawmakers. “Government does not create prosperity, and it
never has. Top-down mandates from big government are artificial and not
sustainable.”
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