Sunday, October 15, 2017

Florida Senate may tap reserves to plug $1.6 billion budget hole - Arek Sarkissian, Tallahassee Democrat

With Medicaid costs rising and tax revenue socked by Hurricane Irma, Senate President Joe Negron says next year's legislative session may include tapping into the state's $3.8 billion in cash reserves. There will also be cuts to non-essential items in the state's $83 billion budget, but the Senate may also propose using the billions of dollars the Legislature has set aside over the years, Negron told the USA TODAY NETWORK - Florida. "It's called the rainy day fund and it's raining," he said in a one-on-one interview. "I think we will also let the appropriations process look into some of the issues in that base budget so we're not continuing to fund the priorities of lawmakers from the past." State economic reports show lawmakers need to trim the budget or face a $1.6 billion hole created by the state's $26.2 billion Medicaid program and an increase in student enrollment. Those costs are recurring and will not be covered by cash reserves. But using the reserves could help offset the state sales tax that was lost after last month's storm. http://www.tallahassee.com/story/news/politics/2017/10/11/florida-senate-may-tap-reserves-plug-1-6-billion-budget-hole/754143001/