Now that Florida Governor Rick Scott has rolled out his budget for 2016-2017, reaction is pouring in from lawmakers, local and county governments, voter groups and even the Florida Chamber of Commerce.
For example, many expect a tough fight with the legislature over health care proposals. Scott has proposed penalties on hospitals overcharging patients and also greater transparency for prices. A commission appointed by the Governor has supported ideas pushed by the House to deregulate healthcare facilities to introduce more competition to the industry, an idea opposed by the Florida Hospital Association. The League of Women Voters is advocating for acceptance of federal funds for Medicaid expansion under the Affordable Care Act, an issue which ended up fracturing the State Legislature during the term just ended and resulting in the first of three costly special sessions.Florida’s cities and counties have their own budgetary concerns, including unfunded mandates and proposed tax reforms. One of the Governor’s proposed tax cuts would be the reduction of the state sales tax on commercial property leases, from 6 percent to 5%. Local governments are concerned with a potential $33 million cut in local sales tax revenues because of this. Proposed cuts in cell phone-cable tax rates in 2016 are also raising some local government concerns. Proposed hikes in school spending concern lawmakers who see higher property tax bills as a result of higher property values paying for the increased spending.
Gov Scott’s centerpiece proposal, Enterprise Florida has garnered praise and support from the Florida Chamber of Commerce. Mark Wilson, the president and CEO of the Florida Chamber is urging lawmakers to embrace Gov Scott’s proposals. Wilson is calling on lawmakers to support the $1 billion tax cut proposal, including one proposal that would end the manufacturing sales tax, and also proposals to phase out the corporate income tax and commercial lease taxes. Wilson praised the Legislature for previously passing bills that have resulted in improving the business climate in Florida, while adding almost 950,000 jobs. “While Florida is moving in the right direction, now is not the time to be complacent. Now is the time to put Florida’s long-term economic security ahead of short-term political fixes”, Wilson said in remarks recently.
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Governor Scott’s style of taking his message directly to the public instead of working with Legislative leaders in both chambers has resulted in at least some ruffled legislative feathers. The 2016 Legislative Term officially gets under way in just a matter of weeks; many bills are already winding their way through various committees. Mix in the State budget and just about anything can happen.