House and Senate budget chiefs are beginning to piece together the
state’s 2021-2022 spending plan.
The two chambers are moving ahead with their respective budget proposals, although lawmakers won’t have a clearer picture of how robust Florida’s post-pandemic economic rebound is until state economists meet next month.
In all, the House proposed spending roughly $42.1 billion across the state’s six health care-related agencies. By contrast the Senate released a $42.3 billion proposal. The proposals are an early step that will ultimately be part of House & Senate leaders negotiating a final budget for the fiscal year that starts July 1.
The House and Senate released early iterations of health care spending plans this week and the outlook wasn't pretty for Florida hospitals.
The Senate proposed about $328 million in reductions to hospitals and the House proposed $514 million, including the near elimination of what is known as the “critical care fund.” The fund is used to provide enhanced Medicaid payments for health care providers that treat the largest numbers of Medicaid patients.
Lawmakers relied on older budget forecasts when assembling their budgets. But the new forecasts have improved, which should reduce the need for reductions.
Additionally, about $10 billion in federal COVID-19 relief money will soon be headed Florida's way, a portion of which could be used to reduce the cuts. Also, the Biden administration has said that it will continue the additional 6.2 percent hike in the amount of money the federal government contributes to the Medicaid program. That would increase by $130 million per month the amount of federal money coming to the state to support Medicaid. The budgets released this week don't include the additional 6.2 percent in federal money.
But an operative word to keep in mind as the appropriations committees consider the initial plans might be just that: initial.
State economists are expected April 6 to revise estimates of general revenue, and that likely will give Senate and House leaders more cash as they negotiate a final budget during the closing weeks of the legislative session.
Enrollment in Florida’s Medicaid program stands at more than 4.5 million people, an increase of more than 730,000 people in the year since the COVID-19 pandemic hit the state. Medicaid and other health and human-services programs took up $11.7 billion in state general revenue, which comes primarily from sales taxes.