PRIORITIES: A CITIZEN S GUIDE TO FLORIDA S BUDGET

Transcription

1 PRIORITIES: A CITIZEN S GUIDE TO FLORIDA S BUDGET

2 Table of Contents Introduction...2 Introduction: Why is the Budget Important?... 3 What Is A Budget?... 5 Budget as Process... 6 Florida s Budget Players... 7 Creating the Budget... 8 Long Range Budget Planning... 9 The Budget Legislation Three Budgets Happen At Once...11 The Florida Budget Cycle You Drive the Cycle Budget as Financial Plan...14 State Government Revenues Revenues From All Sources General Revenues Spending From All Sources Spending from General Revenues Budget as Policy Document Revenues: Does Florida s Tax System Fairly Share the Burden? Revenues: We Lose Money Through Silent Spending Support of Public Services Ranks Near the Bottom Florida s Failure to Expand Medicaid Leaves Many Uninsured Are We Shortchanging Our Kids? The Will of the People Why Should We Care? Citizen Action: You Can Build a Better Budget Glossary References... 32

3 Florida s Budget: An Introduction Introduction: Why is the Budget Important? Budget decisions affect all Floridians. Whether they are young students who want to learn about the world around them, people who are looking for better health for their families, or simply someone trying to get to work in an efficient manner, each of these everyday actions is affected by the state budget. This guide should act as a handbook to participation for anyone who wants to affect education, emergency services, roads, healthcare, and other quality of life issues in Florida, by engaging in the Florida budget process. Each revenue figure in the budget represents a decision with respect to who will pay for the programs and services government provides like roads, police and fire protection, public education, and health care and the capital investments it makes. Each of the spending figures represents a decision as to who will benefit from those services and investments. Decisions about the budget made by the Governor and legislators affect all Floridians. Florida Policy Institute page 3

4 Florida s Budget: An Introduction Our Governor often cites Florida s high rate of economic growth. The climate is generally pleasant, attracting many people from all over the world. Projections indicate that Florida s population will continue to grow at a rate faster than that of the country for many years to come. From now until 2030, people age 60 and older will account for most of Florida s population growth, representing 56.9 percent of the gains, according to a report from Florida s Office of Economic and Demographic Research. The cost of providing health care for one person aged 65 or older is three to five times higher than the cost for someone younger than 65, according to a report by the Centers for Disease Control. Along with that population growth will come the need for well-maintained infrastructure, high-quality public education and services such as police and fire protection, and medical care. As a state, we will need to continue to make investments that guarantee that we maintain the quality of life that makes Florida such an attractie place to live. Through the investments we choose to make via the Florida budget, we make decisions about what is important in the state, like deciding to invest in education so that all Florida kids are well-prepared for jobs that will ensure their prosperity. Or deciding to invest in safe communities, where families can enjoy time together and engage in healthy life habits, or in health care for all Floridians. Citizens and legislators can choose to make smart decisions about the fiscal and physical health of the state and its people. Florida Policy Institute page 4

5 Florida s Budget: An Introduction What Is A Budget? When we say budget, we mean several things. The budget is a: Process As a process, blancing the revenues and spending needs of the state involves the development, passage, monitoring and amendment, as necessary, of the budget throughout a given fiscal year. Financial Plan A budget is a financial plan for the government that passes it. At the state level, this requires that the spending that makes up the budget not exceed the estimated available revenues to support that spending. Statement of Priorities A budget is much more than the numbers that comprise it. Each of those numbers, on both the revenue and spending sides, reflects choices with respect to who benefits from the programs that government funds and who pays for those benefits. Operational Blueprint A budget can also be defined as a dollars and cents expression of a plan of action that determines what is to be accomplished in the coming year and authorizes the financial resources necessary to support those activities. Political Document Ever notice how much attention the budget gets in an election year? There is a reason for that. In many cases officials up for reelection utilize the budget as a statement of their achievements and their political promises for an upcoming term. A budget can be many more things as well. In this primer we will look at the budget as the process that results in its creation and management, the numbers that support it, and the policy choices and priorities that those numbers embody. Our primary focus will be on the last of these facets of budgeting. Florida Policy Institute page 5

6 Florida s Budget As Process Budget as Process As a process, budgeting in the public sector involves the development, passage, monitoring and amendment, as necessary, of the budget throughout a given fiscal year. Florida Policy Institute page 6

7 Forida s Budget As Process Florida s Budget Players Article VII, section 1, of the Florida Constitution reads, No money shall be drawn from the treasury except in pursuance of an appropriation made by law. The key players in the appropriations process are the Governor s Office and the Legislature. In the development of the budget, the following parties have specific roles: State Agencies prepare an annual legislative budget request based on the needs and workloads of the agency. The requests of agencies under the Governor s jurisdiction must be approved by the Governor before presentation to the Legislature. Other Cabinet agency requests do not require the Governor s approval. The Governor presents his Recommended Budget to the Legislature. This budget promotes the Governor s issues and priorities. It must be balanced based on the estimated expenditures it proposes and revenue sources it employs. The Legislature enacts the General Appropriations Act for the coming fiscal year. The Act identifies specific expenditures and revenue sources in line items. Expenditures cannot exceed the revenues available to fund them. After the Act passes, the Governor can veto line items and prohibit their funding. The Legislature may override any or all of the vetoes. The Public has input into budget preparation with each of these parties as they prepare and finalize their respective budgets. We ll let you know how to give input and particpate in the budget process in more detail on page 13 of this guide. Florida Policy Institute page 7

8 Florida s Budget As Process Creating the Budget Legislative Review of Budget Proposal Both houses of the Legislature review the Governor s submission during the sixty-day legislative session. Each house of the Legislature will pass its own version of the budget bills. Budget Passage A budget conference committee deliberates, taking into consideration the consensus revenue forecast. Once a revised budget is agreed to, a single budget conference report (called the General Appropriations Act or GAA) is generated. Upon passage by each house, the GAA is sent to the Governor for his review. Gubernatorial Veto The Governor has the power to veto specific line items within the budget if (s)he disagrees with them. Governor Scott did just that in April 2016 to the tune of $256.1 million. Veto Overrides A line-item veto can be overridden if two-thirds of the members of each house vote to do so. This did not happen in the budget process. Executing the Budget Once the budget adoption process is completed, it is up to the Governor to execute, or carry out, the budget. It is possible for the budget to be amended during a fiscal year. Major changes require action by the Legislative Budget Commission. Florida Policy Institute page 8

9 Forida s Budget As Process Long Range Budget Planning It is important that budgets created for the coming year be built with an understanding of trends for the future, both in terms of the level of revenues that might be expected for the coming years and the demographic and other changes that might drive increased need for services. For this reason, Florida engages in long range budget planning. The Legislative Budget Commission (composed of the Senate Committee on Appropriations, the House Appropriations Committee, and the Legislative Office of Economic and Demographic Research) is required to issue the Outlook by September 15th of each year for the three upcoming fiscal years. The 2015 Outlook projected a surplus of $635 million for Fiscal Year and more than $1.4 billion for the threeyear period ( , and ) covered by the forecast. With this information in hand, agency leaders complete their Legislative Budget Request and submit it to both the Governor and Legislature. The Governor considers these requests and then submits a balanced budget thirty days prior to the start of the Legislative Session Legislative Budget Commission House Appropriations Committee Senate Committee on Appropriations Legislative Office of Economic and Demographic Research Long Range Financial Outlook Florida Policy Institute page 9

10 Florida s Budget As Process Three Budgets Happen At Once Today, for example, some government officials are collecting revenue and expending funds authorized by the current year budget that took effect at the start of the fiscal year on July 1. Budget professionals refer to this as Budget Execution. Just two weeks after the start of the current fiscal year, agency leaders received instructions to begin preparing the budget for the upcoming year from the Director of the Governor s Office of Policy and Budget. This memo outlines how agency leaders should prepare statutorily required documents including the Legislative Budget Request, Capital Improvements Program Plan and Long Range Program Plan. Elsewhere in state government, officials are finalizing accounting and reporting of activities that took place in the prior fiscal year. This activity, called Budget Reconciliation and Close-out, results in publishing the State s Comprehensive Annual Financial Report by the Chief Financial Officer. All in a Year s Work All in a Year s Work July Aug Sept Oct Nov Dec Jan Feb Mar April May June Previous Budget Reconciliation Documenting actual expenditures for the prior budget year Comprehensive Annual Financial Report Current Budget Execution Expending operating and capital funds in the manner directed Agency Operating Budget Future Budget Planning Preparing next year s budget based on projected needs & workload Legislative Budget Requests Florida Policy Institute page 10

11 Forida s Budget As Process The Budget Legislation In Florida, as in most states, the budget is comprised of a collection of legislative bills, passed by the legislature and signed into law or vetoed, in part by the Governor. The budget is the only piece of legislation that the Legislature must pass each year. These bills are introduced in the form of appropriation, implementing and conforming bills. The appropriation bills establish the funding sources, specific uses of funds as well as the spending authority. Implementing bills, which are effective for only a single fiscal year, enact any language necessary to implement the budget as defined in the general appropriations bill. Conforming bills amend the Florida Statutes in order to conform to an appropriations bill. Taken together, this package of bills constitutes the budget in Florida. Appropriation Bill Implementing Bill Conforming Bills The Florida budget is usually passed into law at the close of the legislature s annual sixty-day session. The process that culminates in that passage, however, begins almost a year earlier. The graphic on the next page illustrates the yearlong budget process. Florida Policy Institute page 11

12 Florida s Budget As Process The Florida Budget Cycle October September November Agencies issues their Legislative Budgets State agencies prepare Legislative Budget Requests that reflect their anticipated needs for maintaining state services August December Interim Legislative Committee Meetings The Governor must propose a recommended budget that is balanced & fully accounts forrevenues available. The Governor s Recommended budget ris advisory to the Legislature. January Agencies may issue amendments to their legislative budget requests The Legislature meets for 60 days per year, and is required to adopt a balanced state budget for the next fiscal year. Gov. reviews and issues line item vetoes during the coming fiscal year. Upon the General Appropriations Act becoming law, state agencies allocate funds. July January: Governor s Recommended budget June February Legislative session convenes Tues after 1st Mon of the month. Chambers pass budget bills, meet to negotiate final budget bill. Legislative session ends 60 days after it began. May Legislative Session March April As established by state finance law, in odd years Florida s 60-day Legislative session runs from March to May. In even numbered years, the Legislature generally holds its session starting in January. Florida Policy Institute page 12

13 Forida s Budget As Process You Drive the Cycle Voters elect the Governor and legislators Office visits to legislators are a great way to have your voice heard Individuals may provide input to or ask questions about the budget to their elected officials at any time Floridians can communicate through letters, s, and phone calls Some Floridians offer testimony during legislative committee meetings As will be discussed later in this guide, citizens can even propose and gather signatures for ballot initiatives--potential changes to Florida s budget that are not enacted by legislators. Floridians can influence the budget process in many ways. Florida Policy Institute page 13

14 Florida s Budget As Financial Plan Budget as Financial Plan A budget is a financial plan for the government that passes it. At the state level, this requires that the spending that makes up the budget not exceed the estimated available revenues to support that spending. Florida Policy Institute page 14

15 Florida s Budget As Financial Plan Revenues From All Sources Florida s budget is funded from three sources. The state budget is funded from three sources: General Revenue is money derived from taxes, such as the sales tax or corporate income tax, that are not required by law to be spent for specific services. Federal funds are dedicated by law to a specific service, such as housing. State Trust Funds include money from state sources dedicated by law to a specific service, such as housing, education or environmental land acquisition. State Government Revenues Trust Funds 37% General Revenues (Taxes) 63% State Revenues by Source, $82.3 Billion Florida Policy Institute page 15

16 Florida s Budget As Financial Plan General Revenue Of Florida s General Revenue, 78% comes from sales taxes. Corporate income tax accounts for eight percent of Florida s General Revenue, and all other sources combine for less than fifteen percent. Florida Sales and Other Taxes FY % 1% 2% 3% 1% 2% 4% Sales Tax Corporate Income Tax Insurance Taxes 8% 4% Beverage Tax and Licenses 2% Service Charges 8% Documentary Stamp Tax 78% Corporation Filing Fees 78% Highway Safety Fees Other Taxes and Fees $29.8 Billion Florida Policy Institute page 16

17 Florida s Budget As Financial Plan Spending From All Sources The pie chart below shows how the government allocates all funds general revenues, federal trust funds and state trust funds across service areas. Health and human services received 42 percent and education received 39 percent of total spending. Natural resources, environment, growth management and transportation received 18 percent. The remaining 12 percent is shared among other priorities. Note: These figures do not indicate whether the level of funding for each service area is adequate enough to meet the needs of Floridians. State Government Spending from All Sources FY % 1% 29% Education 18% Human Services Criminal Justice and Corrections 5% Natural Resources, Environment, Growth Mangement & Transp General Government 42% Judicial Branch All Funds Florida Policy Institute page 17

18 Florida s Budget As Financial Plan Spending from General Revenue The pie chart shows how the government allocates general revenue funds across service areas. Education received 51 percent and health and human services 31 percent of general revenue spending. The remaining 18 percent is shared among other service areas (see note on next page). State Government Spending from General Revenue FY % 3% 1% Education 12% Human Services Criminal Justice and Corrections 31 % Natural Resources, Environment, Growth Management and Transportation General Government $30.3 Billion 51% Judicial Branch Florida Policy Institute page 18

19 Florida s Budget As Policy Document Budget as Policy Document Were Florida s budget no greater than the sum of the actions that establish it, or the sum of the numbers that balance revenues and expenditures, it would be important enough for all Floridians to understand and influence. But the budget is much more. It is a statement of the priorities of the government that creates it. We will explore this in greater detail in the section that follows. Florida Policy Institute page 19

20 Florida s Budget As Policy Document Revenues: Does Florida s Tax System Fairly Share the Burden? Florida ranks 49 th in tax fairness as compared to other US states In Florida, the poorest 20% of residents paid 12.9% of their income in state and local taxes in That is nearly seven times the 1.9% paid by people in the top 1% of the income distribution. Across the country, the poorest 20% paid less of their income in state and local taxes than their counterparts in Florida. Whereas the highest earning 1% paid nearly three times more than their counterparts in Florida. Floridians With the Lowest Incomes Pay the Highest Percentage of their Income in Taxes 15% 12% Share of Income in Taxes 9% 6% 3% 0% Less than $17,000 $17,000 - $30,000 $30,000 - $48,000 $48,000 - $81,000 $81,000 - $179,000 $179,000 - $489,000 Greater than $489,000 Florida Policy Institute page 20

21 Florida s Budget As Policy Document High-Income Floridians Pay A Lesser Portion of Their Income in Taxes 30% 25% 20% 15% 10% 5% The Highest Income Florida Families Pay A Smaller Portion of Their Incomes in State and Local Taxes Share of total taxes Share of total income 0% Bottom 20% Second 20% Third 20% Fourth 20% Next 15% Next 4% Next 1% 95 percent of Florida s families pay a higher share of the cost of supporting public services than their share of personal income, while the top 5 percent of families with incomes over $179,000 pay a smaller share. Why does the state and local tax system in Florida ask so much of families struggling to make ends meet? 1. Because Florida s mix of state and local taxes relies much more heavily on sales and similar taxes than do most other states. These taxes are applied to goods consumed by everyone. However, these taxes are charged as a percent of each dollar spent, in some cases, or a dollar amount per purchase. So people who have less money wind up spending a larger portion of their money on these taxes; each dollar paid in taxes takes a larger chunk out of a low income person s total dollars available. 2. Florida is one of five states that collect no tax on income. Income taxes tend to be progressive (the more income you earn, the higher the rate you pay). Because they are progressive, income taxes tend to even out the proportion of taxes paid in relation to a family s income. There is no such evening of the tax burden in Florida. Florida Policy Institute page 21

22 Florida s Budget As Policy Document Revenues: We Lose Money Through Silent Spending Silent Spending, better known as tax expenditures is government spending in the form of tax credits, deductions, and other tax preferences through the state s tax code and not through its budget. This allows tax expenditures to avoid the scrutiny that is normally given to spending decisions every year in the budget. According to the 2016 Florida Tax Handbook, tax expenditure policies cost the state more than $17.7 billion in lost revenues for fiscal year In order to balance the budget with less revenues, funding for critical services is reduced. Lost revenues could be used to improve access and quality of key services that help families and the economy. With $5.4 billion of the foregone revenue from tax expenditures, Florida could bring spending on Medicaid services up to the national average. Or it could have used $6.1 billion to bring per pupil spending in Florida up to the average of all fifty states. Florida Policy Institute page 22

23 Florida s Budget As Policy Document Support of Public Services Ranks Near the Bottom Florida ranks 49 th in support of public services as compared to other US states $6000 $5000 $4000 $3000 $2000 State Spending Per Capita (figures for 2014) $5,457 $3,420 Florida United States 48 states support public services more strongly than Florida. Let s look in particular at a couple of big categories. $1000 $0 United States Average Florida In 2013, (the most recent year for which data for this comparison is available) Florida spent significantly less per person across all public service areas as compared to the average for all other states, except in the area of police. For example, Florida spent 24 percent less on elementary and secondary education, 38 percent less on higher education, 22 percent less on public welfare and 13 percent less on highways. Florida Policy Institute page 23

24 Florida s Budget As Policy Document Florida s Failure To Expand Medicaid Leaves Many Uninsured Medicaid Much has been written recently about the state s approach to Medicaid, the federalstate program that finances health care services provided to the poor and disabled. We know the program serves a large number of Floridians and consumes a very large share of the Florida budget (nearly $25 billion). But, absent context, it is hard to judge how adequate that spending is. Florida spent $4,434 per enrollee during the October 1, 2010-September 20, 2011 period (the most recent data available for all the states) according to a report by the Henry J. Kaiser Family Foundation. This is $1,356 (or 23.4%) per enrollee less than the average of all fifty states. 48 th in the proportion of its citizens who are covered by insurance Florida ranks In 2014, 15% of Florida s population was uninsured, according to the same report. Florida ranks behind only Texas (17%) and Georgia and Oklahoma (both 16%) out of the 50 states and Washington D.C. The report says that across the country, 10% of people are uninsured. Florida Policy Institute page 24

25 Florida s Budget As Policy Document Are We Shortchanging Our Kids? Education Again, Florida s elected leaders talk about the record amount budgeted for K-12 education ($19.75 billion in ). What this number lacks is context. Per-student funding for increased by one percent over the prior year. In order to keep pace with inflation, the per-student funding of $7,178 would have to grow to $8,147. Compared with other states, Florida consistently falls within the bottom 25 percent. Recent comparisons indicate that Florida students are funded more than $2,000 below the national average, and that the funding gap was getting larger as recently as Florida ranks 41 st for its per-pupil spending (adjusted for regional cost differences) Florida Policy Institute page 25

26 Florida s Budget As Policy Document The Will of the People Citizens have the power to affect budget decisions when they wish to see change The Florida Constitution provides the ability for citizens to initiate amendments based on changes they would like to see. When enough citizens deem the Legislature unresponsive to their concerns, they may propose a constitutional amendment that, if passed, binds the Legislature. In some cases, amendments impact the state s budget by creating a financial obligation for the Legislature. This mechanism provides you with a way to impact the state budget directly. Citizens passed two such amendments regarding education in The first amendment limited class sizes in public schools to the number of students appropriate for the grade. Although costly, the Legislature phased in the class-size requirements to meet the 2010 constitutional deadline. It appropriated funds to construct additional classrooms, as well as paying for additional teachers. It is highly questionable whether these funds would have been appropriated for public schools otherwise. Florida Policy Institute page 26

27 Florida s Budget As Policy Document A second 2002 amendment created the state s prekindergarten program. Specifically, the Constitution, as amended by the people, reads: Every four-year old child in Florida shall be provided by the State a high quality prekindergarten learning opportunity in the form of an early childhood development and education program which shall be voluntary, high quality, free, and delivered according to professionally accepted standards. The State established the prekindergarten program, but there has been significant debate about its quality. The debate centers on the time funded for instruction and the preparation of personnel in the classroom to be instructional leaders. Given the importance of early childhood education to prepare children for kindergarten and elementary school, such debate is timely. Florida Policy Institute page 27

28 Florida s Budget As Policy Document A third amendment, passed in 2014, relates to the acquisition of Florida s natural resources to protect sensitive environments or to provide recreation areas. Specifically, the amendment required that 33 percent of the net funds collected from a specific source be placed in the Land Acquisition Trust Fund and used for these purposes. Environmental groups have sued the Legislature on the grounds that the Legislature is not fully appropriating funds from the Land Acquisition Trust Fund and is using funds from the trust to pay state operating expenses, rather than for their intended purpose of land acquisition. These suits have not worked their way through the judicial system, but the fact that citizens need to resort to the courts to have the legislature comply with their intent raises serious concerns. All of these amendments exemplify the will of the people. Once codified in the Constitution, the Legislature should have no choice but to fully fund the amendments as they were passed by Floridians. Anything less undermines the basis of representative government. Florida Policy Institute page 28

29 Florida s Budget As Policy Document Why Should We Care? Are Florida s Taxes Sufficient for Our Needs? When you add it all up, you see a picture of a state that prides itself on being low tax. What people often fail to mention, however, is that it is low benefit as well. For many people, especially the healthy and wealthy, low-tax, low-benefit is just what the doctor ordered. But if you are not in that category, there is real risk that public services you may need are not there for you. Florida has the second most unfair state and local tax system in the nation. Families earning less than $17,000 pay nearly 13 percent of their income in taxes while those earning $489,000 and more pay less than 2 percent of their income in taxes. The state has no income tax and its governments rely heavily on sales and property taxes to support their operations. As a result, families in the lowest 20 percent income bracket are paying the highest effective tax rate among all income groups. Do We Support Services for All Floridians? In the wake of the Great Recession, Florida s approach to avoiding budget deficits involved huge cuts to critical public services rather than increases in revenue. As the state moved from recession to recovery, no significant attempts were made to restore these service level reductions. Rather, the state focused on reducing revenues. The result can be seen in understaffed prisons, lagging affordable housing development, waiting lists for health services for our children and seniors and an unwillingness to make infrastructure improvements that will protect our vulnerable communities from the effects of sea rise. Are There Better Choices We Could Make? Legislators and the governor talk like they have to make tough choices, and tough cuts to important services--but they don t. If we funded what the state needs instead of cutting taxes and making do with what s left, we could create a Florida where we can all pursue prosperity in thriving communities with great job opportunities. By getting involved with the state budget process, you can help ensure that the right choices are made. Florida Policy Institute page 29

30 Citizen Action: You Can Build a Better Budget Budget decisions affect ALL Floridians. Residents expect sufficient roadways that are adequately maintained to get from place to place. They expect mass transit that limits traffic congestion and provides mobility to those who don t drive. They expect safe communities, and clean drinking water. They expect the natural environment that makes Florida unique to be preserved and maintained. They expect public education that prepares young Floridians to become engaged, selfsufficient adults. The businesses that will drive Florida s economic growth depend on that public education to provide them a skilled workforce. All of these components are included in the state budget. How can you affect budget decisions? There are opportunities to get involved at every step of the budget process. Communicate with your elected officials about what kinds of services and communities you want in Florida. Get involved in local campaigns and elections, ensuring that you help choose the people who are making and voting on state budgets. Talk to your friends, family, and community members about how the budget affects your day-to-day lives, and what you want Florida to be in the future. We hope this primer gives you a foundation in the basic concepts and terminology of the Florida budget and the process used to create it. We encourage you to learn more and engage in the policymaking process. The Florida Policy Institute is here to help. Florida Policy Institute page 30

31 Glossary Appropriation- A statutory authorization to spend during a specific fiscal year. Appropriations represent the maximum spending authority, rather than mandates to spend. Expenditures need not, and generally do not, equal the amount of the appropriation from which they are made. Bill- A proposed act filed in either house of the legislature. Budget- A financial plan that outlines all expenditures and revenues for a fiscal year. The detailed spending plan submitted by the Governor to the legislature which recommends monetary allocations for each of the departments of the state for the next fiscal year is also known as a budget. Using recommendations from the Governor and individual departments, each chamber prepares its own version of the budget. Committee- A panel of legislators chosen by the respective presiding officer to perform specific functions. Conference Committee- A committee composed of members of the Senate (appointed by the President) and members of the House of Representatives (appointed by the Speaker) whose sole purpose is to reach a final agreement on a bill. Constitution- The written instrument embodying the fundamental principles of the state that establishes power and duties of the government and guarantees certain rights to the people. Debt Service- Required payments of principal and interest on bonds and notes issued. Expenditure- Payment, either in cash, by assuming a liability, or by surrendering an asset. Fiscal Year- The period used for budgeting and accounting. In Florida state government, this is the period from July 1 of one calendar year to June 30 of the next calendar year. General Appropriations Act- The only legislation that the Florida Legislature is required to pass each year. The Governor has the authority to veto line items within the Act. The Act identifies the amount and source of funding for state operations and capital expenditures. Line-Item Veto- Power of the Governor to selectively prohibit spending on items in a general appropriations act or any specific appropriation in a substantive act containing an appropriation. President of the Senate- The presiding officer of the Senate, having been designated by the majority party in caucus and then elected by the full membership of the Senate for a term of two years at the organization session. Revenue- Estimates of every and all types of income received by State departments and programs, including funds from fees, charges, surcharges, rents, reimbursements, grants, fines, interest, and earnings. Session- The term is used to refer to the entire period for which the legislature has been convened. Speaker- The presiding officer of the House of Representatives, having been designated by the majority party in caucus and then elected by the body for a term of two years at the organization session. Tax Expenditures: government spending on special interest activities, entities or groups in the form of tax credits, deductions, and other tax preferences through the state s tax code and not through its budget. Veto- Objection by the Governor to an act passed by the legislature, which kills the act unless it is reenacted later by a two-thirds vote of both houses. Veto Override- Action by the legislature to set aside the Governor s objections to an act. It takes two-thirds of the members voting in each house to override a veto. Florida Policy Institute page 31

32 References Bureau of the Census. (2013). Public Education Finances. Center on Budget and Policy Priorities. (2014), Budgeting for the Future: Fiscal Planning Tools Can Show the Way, Budgeting for the Future. Center on Budget and Policy Priorities. (2014). Budgeting for the Future: Fiscal Planning Tools Can Show the Way, Florida Fact Sheet. Centers for Disease Control. (2013). The State of Aging and Health in America agingandhealth/state_of_aging_and_health_in_america_2013.pdf Duccasi, Daniel. (2015, Sept 16). Corrections chief paints grim picture of Florida s prison system. Politico.com. politico.com/states/florida/story/2015/09/corrections-chief-paints-grim-picture-of-floridas-prison-system Florida Assisted Living Federation of America. (2014, March 17). Florida s Economic Future & the Impact of Aging. edr.state.fl.us/content/presentations/economic/fleconomicfuture&theimpactofaging_ pdf Institute on Taxation and Economic Policy. (2015). Who Pays: 5th Edition, Who Pays Report. full_report.php Kaiser Family Foundation. (2016). Medicaid Spending Per Enrollee (Full or Partial Benefit). Kaiser Family Foundation. (2016). Total State Expenditures Per Capita, Per Capita State Spending. state-indicator/per-capita-state-spending/ State of Florida Office of Economic and Demographic Research. (2015). Florida Tax Handbook. content/revenues/reports/tax-handbook/ State of Florida. (2015). Long-Range Financial Outlook: Fiscal Years through Content/long-range-financial-outlook/3-Year-Plan_Fall-2015_ pdf Education Week Research Center. (2016). Quality Counts Report html State of Florida Chief Financial Officer Jeff Atwater. (2014) Comprehensive Annual Financial Report: Fiscal Year Ended June 30, State of Florida House of Representatives. (2012). OPI Pulse: Florida s Budget Process. gov/handlers/leagisdocumentretriever.ashx?leaf=housecontent/opi/lists/announcements/attachments/45/opi%20 Pulse%20-%20Florida s%20budget%20process% pdf&area=house State of Florida Legislature. (2015). Fiscal Analysis in Brief: 2015 Legislative Sessions Including Special Session A. State of Florida Senate. Glossary. State of Florida Governor Rick Scott. (2015). Veto Letter to Secretary of State Detzner, uploads/2013/06/veto-letter-sb-1420.pdf State of Florida Governor Rick Scott. (2015). Governor Scott Announces Highest Per-Student K-12 Education Funding As Part Of KEEP FLORIDA WORKING Budget. education-funding-as-part-of-keep-florida-working-budget-3/ Wallace, Jeremy. (2015, September 12). Funding shortage leads to backlogged crime labs, aging patrol vehicles and huge law enforcement turnover. Florida Policy Institute page 32