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Stimulus Headed Florida's Way

Tribune file photo by CHRIS URSO (2006)

Louis Sciuto reaches for a pill at his Zephyrhills home. His kidney transplant drugs are covered under medicaid.

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By BILLY HOUSE and CATHERINE DOLINSKI

bhouse@tampatrib.com cdolinski@tampatrib.com

Published: February 13, 2009

Updated: 02/13/2009 07:15 am

WASHINGTON - Although many details remained unclear Thursday night, early estimates are that Florida could get at least $10 billion from the $789 billion economic stimulus package agreed on by the U.S. House and Senate.

That money includes an added $4.3 billion over two years in federal Medicaid funding and about $1.95 billion toward helping the cash-strapped state address budget shortfalls.

That was enough Thursday for GOP Gov. Charlie Crist and Tampa Democrat Rep. Kathy Castor to applaud the package of spending increases and tax relief. The House was preparing for a final vote on the legislation as early as today, and the Senate soon will follow suit.

"You know, what we were looking at just a few months ago was no stimulus at all. And so, if you compare where we were to where we are now, I'm very, very pleased for my fellow Floridians for that," Crist said.

Florida Republicans Take Aim

There was criticism from Florida Republicans in Congress, none of whom voted for the initial Senate or House versions of the bill.

Some, including Sen. Mel Martinez, said the bill does little to address the state's housing and unemployment crisis, which he termed Florida's big economic concerns.

By the end of the day, Martinez was taking swipes at Crist on the U.S. Senate floor, saying, "My governor would like to see this package pass.

"But I don't know that my governor understands all the details in this package. ... At the end of the day, there's not enough largesse that can come to Florida from the federal government to fill the coffer for state needs," Martinez said.

Castor acknowledged that many of the details "are still rolling out," but she said the bill represents "great news for Florida families, especially those in our hard-hit Tampa Bay area."

Among the biggest boosts: Florida is expected to get $4.3 billion over two years in federal Medicaid matching money.

"There are no earmarks in the bill, but this is the granddaddy of all earmarks for Florida," Castor said.

She and Crist downplayed what has loomed as one potential snag for Florida to qualify for a major education funding category that could send well over $1.95 billion more to the state.

Under the House-Senate accord, as it appears in draft form, Florida technically does not qualify for a share of a $53.4 billion pot of money - mostly for education needs - to help states such as Florida that are facing huge budget deficits.

That's because a state must be funding K-12 and higher education at no less than 2006 levels. States that are not would forfeit their share of the money to other states.

Florida falls $600 million short on that count because it has 30,000 fewer students than in 2006, the biggest drop in public enrollment in the state's history.

"It looks like Florida would have to apply for a waiver from the education secretary," said Ken Lundberg, a Martinez spokesman.

Crist said he is concerned about that but optimistic. "I'm concerned about everything, ... but I think we have a very good relationship with this new administration in Washington, and if a waiver might be necessary, I think we would be successful," he said.

Castor said she does not think getting such a waiver would be a problem.

Still, until more details are available, it isn't possible to determine what Florida could receive under that broad category of funding.

What Could Have Been

Florida would have received about $3.5 billion in that funding under the House plan, which set aside $79 billion for the category. The Senate's $838 billion bill would have set aside $39 billion, with Florida getting about $1.7 billion.

What Florida could end up with from this State Fiscal Stabilization Fund could, in the end, be closer to the lower amount the Senate bill would have yielded because some of the compromise bill's $53.4 billion actually replaces a $20 million category of funding sought by House Democrats and Obama for school repairs.

In addition, a fact sheet sent out by House Speaker Nancy Pelosi shows the fund apparently now would give governors less flexibility in how to use the money, which primarily is made up of $40.6 billion for school districts to help prevent layoffs, for school modernization and other purposes.

These categories were blended because GOP Sen. Susan Collins of Maine, one of three Republican moderates key to getting the package passed in the Senate, objected to creating a special category for school construction.

"The state will be able to control a little bit of this money, but it's largely driven down to school districts," Castor said.

An additional $5 billion would go to states as "bonus grants" for meeting key performance measures in education; $8 billion would go to states for other "high-priority" needs such as public safety, which may include education, but not necessarily.

Martinez and Florida's other Republicans in Congress complained Thursday that there were not enough details to determine effects of the package on Florida and that they were likely to vote no on it.

"It's not creating jobs," GOP Rep. Gus Bilirakis said of the plan. "It's a huge IOU handed to our children and grandchildren - throwing money against the wall and hoping something sticks.

Rep. Ginny Brown-Waite of Brooksville said constituents are telling her they are concerned about debt produced by the bill. "This is spending gone amok," she said.

Reporter Catherine Dolinski can be reached at (850) 222-8382. Reporter Billy House can be reached at (202) 662-7673.

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