Tallahassee Update - Fall 2007
Florida’s annual 60-day regular Legislative Session ended more than five months ago, but the “sine die” celebration was short-lived as lawmakers were soon called back to Tallahassee for yet another Special Session. So far this year, lawmakers have met in four special sessions and there’s talk of more to come.
As of mid-October legislative leaders have yet to resolve Governor Crist’s number one goal to reform property taxes. They have been able to reach agreement on some import issues including reinstating Florida’s mandatory automobile insurance law and cutting $1 billion from the state budget to coincide with the considerable reduction in tax revenue collections.
Lawmakers are diligently working to resolve differences on the property tax crisis while simultaneously preparing for the ‘08 Legislative Session and beyond. To date, more than several hundred bills have been filed for consideration during the regular session next spring and political fundraising efforts are underway in anticipation of the election in November 2008.
Here is a brief overview of some of these issues that may be of interest:
State Budget:
Florida Lawmakers were called to Tallahassee in October to reduce more than $1 billion from the state’s budget. Lawmakers attempted to minimize the impact to healthcare by avoiding cuts to programs that receive matching federal dollars. Total General Revenue reductions in healthcare for Fiscal Year 2007-2008 have reached $201.1 million. Early indications are that further reduction to the state’s budget may be necessary depending upon actual collections that will be coming in over the next few months.
Personal Injury Protection:
During a recent Special Session, Lawmakers passed CS/HB 13-C that re-enacts and revises the Florida Motor Vehicle No-Fault Law. The new law is scheduled to take effect January 1, 2008 and requires that all motor vehicle owners obtain personal injury protection (PIP) coverage by that date. Also by that time, all insurers must add PIP coverage to motor vehicle insurance policies in force. PIP coverage will continue to pay 80 percent of medical expenses up to $10,000. However, benefits are limited to services and care lawfully provided, supervised, ordered or prescribed by a licensed physician, osteopath, chiropractor or dentist or provided by specified medical entities.
E-Prescribing:
The Agency for Health Care Administration is required under Section 408.0611 Florida Statutes to promote the implementation of electronic prescribing. The Florida Electronic Prescribing Advisory Panel is charged with advising the Agency for Health Care Administration on the status of the adoption of electronic prescribing and strategies for accelerating its use. The 14-member panel, which met earlier this month, will submit a report to the Florida Legislature no later than January 31, 2008 on the agency’s implementation progress.
Prescription Drugs:
Among the legislative study projects underway this fall, is an evaluation of the current regulations imposed upon the wholesale prescription drug marketplace. Legislative staff will review the “pedigree paper” requirement to determine whether current law is fairly and efficiently ensuring the safety of Florida’s prescription drug supply. Stakeholders will have an opportunity to comment on functional problems with current law and any recommended changes will be included in a final report presented to lawmakers early next year.
Consumer Website:
The Florida’s Agency for Health Care Administration updated the House Health Quality Committee recently on the status of an informational website for medical consumers. The site, currently under construction is floridahealthfinder.gov and will provide the general public with valuable healthcare information. Individuals will be able to research medical procedures and costs, and as review other related information via the internet.
Tallahassee Update - Summer 2007
Florida’s budget challenges
Less than six months ago, Florida’s newly elected Governor gave his first State of the State address on the opening day of the 2007 Legislative Session. Governor Charlie Crist reported that the State of the State is "strong and promising" while remaining cautiously optimistic about the Florida’s financial future. Few could have predicted that six months later, Lawmakers would be heading back to Tallahassee for a September special legislative session to cut state spending and revise the bare bones budget they so carefully crafted a few months earlier.
Today, the "state of the state" is uncertain at best. Florida’s actual revenues are $400 million below the official estimates of March '07. The state’s top economists and legislative leaders used the March estimates, a standard procedure, to build the budget for the next fiscal year. Relying on these numbers, Lawmakers approved a $71.5 billion General Appropriations Act for fiscal year 2007-2008.
Fortunately, the state’s existing budget reserve is sufficient to offset this year’s deficit. The greatest concern is for the '08 – '09 fiscal year and beyond as Florida faces a potential recurring revenue shortfall of more than $800 million. Governor Crist recently ordered state agencies to prepare for 10% cuts, with a minimum of 4% reduction, necessary to address projected shortfalls.
For most agencies, and especially the Florida Department of Health and the Agency for Health Care Administration, these cuts will be significant. Not only will program allocations and services be reduced, but some federal funding, which is contingent upon matching state dollars, could also be impacted. Additionally, grant dollars, particularly the $10 million set aside for Centers of Excellence research programs, including medical research, could be eliminated.
Florida’s Constitution mandates that each Session, the State Legislature send the Governor a balanced spending plan. The appropriations bill is the only legislation lawmakers must approve before they conclude their work each Session and "Sine Die". The budget must be balanced and must raise sufficient revenue to defray the expenses of the state for each fiscal year.
Over the next few months, state officials and fiscal experts will be analyzing Florida’s financial situation, making critical revenue estimates and cutting state spending in a significant way. This issue will dominate Florida’s Legislative agenda during the Interim, thru the 2008 Session and beyond. No doubt, this will be major campaign issue during the upcoming 2008 fall elections.
Interim Committee Meetings and Special Session
Recently, House and Senate leaders announced the proposed dates for the Interim Committee meetings set to begin in September. Each month, Lawmakers will conduct legislative committee meetings in Tallahassee to prepare for the 2008 Session next spring. Bills to be considered during the ’08 session are being filed and could be considered during the Interim.
The Special Session on the budget deficit is scheduled to begin September 18th and could last until sometime in October.
PIP:
Florida’s 'no-fault' auto insurance law, commonly referred to as personal injury protection or ‘PIP’, is set to expire October 1st unless reenacted by the Florida Legislature. Governor Crist, hospitals and trial lawyers hope to convince lawmaker to include this issue when the Florida Legislature meets in Special Session this September. The medical community is concerned that without PIP, many Florida motorists have no other coverage if they are injured in an automobile accident.
House and Senate leaders have expressed their reluctance to include PIP during the fall special session and at best may extend the 'sunset' another year. This additional time would give lawmakers an opportunity to thoroughly examine the strengths and weaknesses of PIP and recommend solutions in time for next year’s Regular Session.
Youth Tobacco Education:
This summer, Governor Crist signed into law the Statewide Tobacco Education and Prevention Program, implementing Amendment 4 which was approved by voters last November. The legislation created a 23 member advisory council to oversee the program.
Amendment 4, approved by a 60.9% margin, requires the Legislature to annually allocate 15% - approximately $58 million, of the tobacco settlement funds into an anti-smoking program for youth. An additional requirement for that amendment specifies that the annual allocation keep up with inflation and in three years, the program is expected to increase to $61 million.
Surgeon General:
Florida Legislature created the state’s first Surgeon General. Dr. Ana Viamonte Ross, Secretary, Florida Department of Health, is the first woman to head that agency and now, as Florida’s first Surgeon General, will also serve as the state’s advocate for wellness and disease prevention.
Taxation and Budget Reform Commission:
Established by Constitutional Amendment in 1988, Florida’s Taxation and Budget Reform Commission is tasked every 20 years with examining the state budgetary process. Commission members analyze Florida’s tax structure as well as governmental productivity and efficiency and can place constitutional reforms directly on the ballot.
The Commission, currently chaired by former House Speaker Allan Bense, R. – Panama City, has met twice since the members’ were appointed last February. Future statewide meeting locations and dates will be announced soon. The 29 member board must submit any proposed constitutional amendment by May 4, 2008.
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