By James Call
http://stream.publicbroadcasting.net/production/mp3/wfsu/local-wfsu-960827.mp3
Tallahassee, FL – A bill requiring government employees to contribute three- percent of their salary into their retirement fund passed out of the Senate Budget Committee Thursday. The measure, which would affect all 650,000-plus members of the retirement system, would also close the state's DROP program, which provides an incentive for workers to retire early. However, James Call reports, the bill's sponsor concede the proposal may change when it is considered by the full Senate.
Thursday's meeting of the Senate Budget Committee began with subcommittee chairmen reciting recommended spending cuts.
"Reduce the department of corrections operating costs by 2 million dollars by closing "
They explained the different money saving strategies they want to employ:
"We asked is this something government should be doing."
Florida lawmakers say a $3.8 billion dollar budget shortfall is forcing them to set priorities on spending. So, although every sector and every silo of state spending will get fewer dollars next year, some areas will experience smaller cuts than others. Senator David Simmons chairs the education committee, said if you look at all the numbers in his proposal; the budget for public schools next year experienced almost no cut at all.
"When you take everything into consideration the end result is the funds for FTE is reduced overall by one half of one percent. So it is essentially level funding what we are doing here in the senate in respect to pre K through 12."
Simmons gets to that one half of one percent cut by including more than $600 million dollars in money the state saves in a pension reform plan. It would require teachers to contribute three percent of their salaries to their retirement fund. The proposal affects all 600,000 workers in the Florida Retirement plan.
The Deepest recession in 70 years is requiring Florida to change state policy. And firefighters, teachers and sheriff deputies lined up to tell Senators they are proposing balancing a state budget on the backs of those who serve. Their allies, labor unions and professional associations, along with Democratic lawmakers ask why not increase state revenue instead of reduce services and cut benefits. Rich Templin represents the AFL CIO in about a minute he laid out a proposal that he said would raise more than a billion dollars.
"There's a loophole that allows x corporations to escape all of their lawful tax liability. Close those 850 million dollars. Just one or two of the 51 different exemptions already identified by the House of Representatives as problematic 476-million dollars, that's just 1.9-billion dollars I have just found you to balance the budget and I didn't even break a sweat."
"Mr. Templin could you please wrap up in about 30 seconds."
"Yes Sir."
It wasn't the first time this week that Senate Budget Chief JD Alexander faced the question. It was raised Tuesday when Alexander briefed the Senate Democratic Caucus on his budget proposal. Senate Democratic Leader asked about his philosophy on increasing state revenue. Thursday Alexander gave basically the same answer he did Tuesday.
"I haven't spent a lot of time trying to move it forward because I think it is clear where the Senate is. And where the House clearly is. And where the governor clearly is. So rather than spend a lot of time on things I don't think are possible I've tried to focus on trying to make it work the best I possibly can."
What Alexander thinks is possible is spending cuts and policy changes. But his plan is to save 1 point 1 billion dollars in changes to the Florida Retirement System for public employees critics say will lead to a mass exodus of workers from public service. Senator Bill Montford represents the Tallahassee area. Tens of thousands of state workers live in his district.
"What concerns me though is the compilation of what we're doing. And that is if we go this route of three percent, plus, the insurance implications we will be talking about later. Plus there are a lot of other issues we will be addressing. I think we may be causing a crippling effect if you will on the operation of government the services we all depend on."
Alexander's pension reform proposal passed on a 10-8 vote with 2 republicans saying unless changes are made they will vote against it on the floor. A sticking point is the deferred retirement plan known as DROP. It encourages workers to retire early. First responders asked senators do they want a firefighter older than 60 rushing into a burning building to locate injured people or an elderly deputy responding to a call for help in the middle of the night. Afterward Alexander appeared open to changes but explained he cannot consider specific budget items in isolation. He counted $100 million dollars in savings by doing away with DROP. Budgeting he has said is a zero sum game but that he would reflect on the testimony given during the public hearing.
"I need to understand that decision if we decide we don't all those things have economic consequences more difficult to eliminate drop all come together to form a budget."
The House is also considering a pension reform plan. It may be one of the last issues resolved before lawmakers end the Legislative Session May 6th.