State's share of stimulus could boost roads, schools and health care

TALLAHASSEE - Many of the painful spending cuts made by the Florida Legislature in recent months could be offset by stimulus funds coming from the federal government. Florida and other beleaguered states Tuesday got their best look yet at how much might be in store as Congressional Democrats unveiled an $825 billion stimulus plan.

Florida's share is unclear, but is likely to be several billion dollars, which could offset many of the recent budget decisions Florida lawmakers have had to make, ranging from cutting nearly $500 million from public schools to raiding a tobacco settlement fund for $700 million.

One of the biggest boosts will come in health care spending, with the House of Representatives' bill promising to increase the federal match for Medicaid by at least 4.8 percent.

With its high unemployment and home foreclosure rate, Florida is expected to receive an even larger share, with each 1 percent increase representing a $150 million increase in federal funds. That could bring as much as $3 billion to Florida for Medicaid alone.

Florida public schools, community colleges and universities would benefit from the $120 billion provision aimed at helping "states and school districts stabilize budgets and prevent tax increases and deep cuts to critical education programs."

Some $41 billion nationally would be targeted to the public schools, including $13 billion for schools with impoverished students and $13 billion for disabled students.

Another $14 billion would be allocated to school construction and $1 billion would be used for technology improvements.

Another $79 billion education provision would send $39 billion to school districts, community colleges and public universities using existing state and federal distribution formulas.

Some $6 billion would be slated for higher-education construction and $15 billion would be targeted to states based on meeting education performance standards. Another $25 billion would be used for public safety improvements, which could include schools.

Anticipating the federal legislation, Florida officials have also lined up $6.9 billion in transportation projects that could be funded by the federal recovery plan.

The House bill outlined a $30 billion highway construction program, which may mean Florida may not get as much as originally anticipated.

But there are numerous other provisions in the bill that could boost transportation spending, including $3 billion for airport improvements and $6 billion to improve public transit, including purchasing new buses.

Medicaid looks like one of the biggest beneficiaries, and that is critical for states who are seeing a surge in unemployed workers who cannot pay their medical costs.

The federal government provides 55 percent of the cost for Medicaid, the state-federal health care program for Florida's poorest and sickest residents. But since 2004, federal support for Florida's Medicaid program has plummeted from 61.88 percent to 55.40 percent.

State officials have argued that the state was unfairly punished by having its per capita income -- which is used to set the federal match -- rise artificially during the recovery period from the 2004-05 hurricanes.

Under the House bill, Florida's federal share would increase to at least 60.2 percent for the two-year period. But Florida would also benefit from a provision in the bill that provides "additional relief" to states with high unemployment rates. The U.S. House Appropriations Committee did not release any details on what Florida would receive from the bill.

A similar measure advanced by U.S. Senate leaders in the fall would have provided Florida with $1.8 billion in additional Medicaid support.

But the $40 billion proposal was less ambitious in scope, providing the temporary increase for 14 months. The new House bill outlines an $87 billion Medicaid boost that would cover two years.

"It's a huge help," said Karen Woodall, a longtime lobbyist for social service groups.

One of the immediate benefits of the federal legislation is that Florida would avoid a further drop in its federal Medicaid match, she said.

She also said she and other social service advocates would urge state lawmakers to use the infusion of federal money to restore some of the cuts that have been made in the past few years to Medicaid programs.