From: Ford, Andy
Sent: Tuesday, July 14, 2009 9:09 AM
To: _FEA Executive Cabinet; _FEA Gov Board-All; _FEA Locals Staff; _FEA State Staff
Subject: New allocation July 1, 2009
Please find below an email I sent last week regarding the potential for a special legislative session to occur in September due to additional declines in Florida’s revenue collections. There certainly are a lot of rumors being discussed and all of us remain concerned as we prepare to enter another school year.
Another area of discussion has focused on stimulus funds from the American Recovery & Reinvestment Act (ARRA). This has also generated a large amount of speculation and many rumors regarding the level of funding and the uses of these funds. Recently, we have begun to hear reports that additional funds were available and being released. I wanted to share with you what we have learned about these funds.
The U. S. Secretary of Education Arne Duncan has announced the Federal Department of Education is releasing more than $2.7 billion earlier than anticipated to help states as they face increasing budgetary pressures. This funding represents the last third of the government services fund which was initially scheduled to be made available with the completion of Phase II applications as part of the State Fiscal Stabilization Fund (SFSF) under ARRA. The SFSF is intended to augment state education budgets and drive additional reform efforts.
Florida’s share of this last third of the allocation is $162,179,566. Even though this money has been released, as far as FEA can ascertain, it will not be allocated into the state budget until next legislative session. FEA had argued during this past session that the state should have applied for the full amount and placed these funds into the appropriations process in order to have them available for this budget year. Unfortunately, we were unsuccessful in this effort.
Tracking of all of the stimulus funds is a very tricky process and we will continue to remain vigilant as changes occur in Washington and in Tallahassee. As you all know, holding this additional money and applying for the remaining amount of $891 million this fall will once again only hold us where we are currently. These funds will not improve our standing overall or eliminate Florida’s need for revenue and reform of our tax structure. We will continue to lobby our elected leaders for additional funding during the next legislative session as we work to make our schools a priority.
Please let us know if you have any questions regarding this information.
Andy
From: Ford, Andy
Sent: Friday, July 10, 2009 3:34 PM
To: _FEA Executive Cabinet; _FEA Gov Board-All; _FEA Locals Staff; _FEA State Staff
Subject: STATE ECONOMIST: SPECIAL BUDGET SESSION UNLIKELY
I wanted to share with you an email I received today…
STATE ECONOMIST: SPECIAL BUDGET SESSION UNLIKELY
By MICHALE PELTIER
THE NEWS SERVICE OF FLORIDA
THE CAPITAL, TALLAHASSEE, July 9, 2009…Saying recent estimates appear to be holding up, the Legislature’s top economist on Thursday said it was unlikely lawmakers would have to return for a special session this fall to tweak the state budget.
Amy Baker, coordinator at the Legislature’s Office of Economic and Demographic Research, said predictions made in March by a panel of economists are being validated by hard data amassed since the panel last met. Given such accuracy, budget decisions based on that data appear to remain valid.
“I don’t see that happening,” Baker said of a special budget session. “When you look at the last couple months, our projections are tracking really well.”
Baker made the comments a few hours after she and other state economists concluded an assessment of the national economic picture, saying it was not as bad as they had last predicted but may take a little longer to recover then previously thought.
“We all felt that we are getting close to the bottom, but it’s going to take a little time to come back,” she said.
Rumors have been floating around the capital city that lawmakers may have to return this fall to again tweak the state’s financial blueprint by cutting more spending.
Though unforeseen events could change her assessment, Baker said the country has already weathered a housing slump, a credit crunch and other unpredicted events and the earlier estimates are still holding up. The panel plans to meet during the first week in August to revise its state economic forecast.
“I think we’ve about run out of shocks, at least right now,” Baker said.
Speaking to reporters Thursday, Crist was characteristically upbeat, saying he was briefed on Wednesday by budget director Jerry McDaniel and liked what he heard.
“It looks like numbers are slightly up,” Crist said. “I think we’re in pretty good shape, especially when you compare Florida to New York, California, Michigan and some of the other states. The soundness of our budget is something to be envied.”
While somewhat optimistic, state economists weren’t ready to pronounce the national economy as recovered. Continued tight credit and a persistent lag in home sales may linger longer than previously predicted, making any recovery slower.
“The credit market is a big question mark,” said Clyde Diao, an economist in the governor’s office.
Another big question is whether consumers respond to any good news by going out and buying something or if they will instead sock it away for the next rainy day. Consumer spending has been a critical component of the nation’s activity.
Andy Ford, President
Florida Education Association
NEA, AFT, AFL-CIO
Imagine the Future!