Setting the stage for a timely ending of session, House and Senate conferees early Tuesday reached a deal on the state’s $68 billion spending plan that includes $308 million in tax breaks, and no cuts to the state’s Medically Needy program or substance abuse efforts.
In what Gov. Rick Scott called “a great first step” and a “huge win” for business owners, the plan will take some businesses off the corporate tax rolls. Though that falls far short of the tax rate cut he wanted, Scott pledged that he will continue to push for more, and said getting a reduced version was “part of the legislative process.”
“The House and Senate budget committees have produced a budget that meets my core principles,” Scott said in a post-Cabinet availability with reporters. “The business tax cut is a huge win for business owners in Florida. It’s a great first step toward phasing out the business tax over seven years.”
Legislative budget chiefs Sen. JD Alexander and Rep. Denise Grimsley announced the pact Tuesday morning after nearly all-night negotiations between the chambers to bring the budget in for a landing, a difficult task as they faced a $3.8 billion shortfall.
“This has been a remarkable year for all the wrong reasons,” said Senate President Mike Haridopolos, R-Merritt Island, told members following the budget announcement.
The last major sticking point was in the health and human services area, but several issues came together on that to greatly reduce the likelihood of an overtime session.
Alexander also told reporters Tuesday morning that an agreement was at hand over expanding the use of managed care to serve the state’s 2 million Medicaid recipients.
The budget deal includes a total of almost $700 million in Medicaid rate cuts for hospitals and nursing homes. Of that, hospitals took a $510 million hit, as they absorbed a 12 percent cut. But lawmakers spared some other big ticket programs from cuts, including adult mental health and substance abuse treatment and the Medically Needy program, which serves people who have debilitating illnesses but don’t qualify for Medicaid.
