2014 Budget Turkeys

16
2014 Budget Turkey Report May 2014

Transcript of 2014 Budget Turkeys

Page 1: 2014 Budget Turkeys

2014 Budget Turkey ReportMay 2014

Page 2: 2014 Budget Turkeys

2014 Florida TaxWatch Turkey Report2

The 2014 Budget Turkey Report is the result of an annual independent review by Florida TaxWatch of Florida’s proposed budget before the Governor exercises his line-item veto power. The Report protects and enhances the integrity of

the state’s budgeting system, based on the principle that money appropriated by the Legislature belongs to the taxpayers of Florida, therefore the process must be transparent and accountable, and every appropriation should receive deliberation and debate.

The budget review identifies appropriations that circumvent transparency and accountability standards in public budgeting. Each appropriation is scrutinized against a set of standardized criteria established by Florida TaxWatch.

Each year, the Budget Turkey Report consists of only a very small percentage of the state budget, and this year represent less than one-quarter of one percent. The $77.1 billion budget passed by the Florida House and Senate on May 2, 2014 contains approximately $120 million in appropriations qualifying as Budget Turkeys.

WHAT IS A TURKEYBudget Turkeys are individual line-items that are appropriated without being subject to a thoughtful and thorough budget process. The “Budget Turkey” label does not signify judgment of a project’s worthiness. Instead, the review focuses on the Florida budget process, and the purpose of the “Budget Turkey” label is to ensure that all appropriations using public funds are subject to scrutiny.

The 2014 Budget Turkey Report consists largely of appropriations to specific non-state recipients or local governments. Awarding contracted services to specific providers and specifying narrow geographic locations bypasses competitive bidding and agency input into budget areas where limited funds are needed most.

2004 2006 2008 2010 2012 2014

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2014 Florida TaxWatch Turkey Report 3

CRITERIAThe Florida TaxWatch Budget Turkey criteria are clearly defined. Appropriations must violate sound budgeting practices in at least one of these ways to be designated as a Budget Turkey.

A project that circumvents established review and selection processes or has completed the established process but is funded ahead of higher priority projects (as determined by the selection process).1

Appropriations that are inserted in the budget during conference committee meetings, meaning they did not appear in either of the final Senate or House budgets.

Appropriations from inappropriate trust funds; duplicative appropriations; and appropriations contingent on legislation that did not pass.

THE pURpoSE of THE bUdgET TURKEY REpoRT Florida TaxWatch identifies Budget Turkeys to promote transparency in public budgeting, encourage meaningful legislative review of all appropriations, and facilitate the checks and balances within the budget process that are granted by the Constitution.

1. Promote transparency in public budgeting

Projects first appearing in the budget process during conference are identified by Florida TaxWatch to expose the lack of transparency that occurs during the conference process. Projects that are added during conference are added to the budget without public debate, scrutiny, or legislative vote—even by those Legislators who sit on the conference committees.

2. Encourage meaningful legislative review of all appropriations

All appropriations should be subject to adequate public review, debate, and scrutiny, which requires that all legislators review proposed appropriations. When projects are added during conference, they have bypassed the normal appropriations subcommittee and committee process. The only legislators that have the ability to publicly vet these expenditures to any degree are those who sit on conference committees, shielding those appropriations from scrutiny by every member.

1 Examples of projects that have an established budget review process include: the transportation work program, education

facilities construction (PECO), local parks (FRDAP), aquaculture, beach renourishment; and historical preservation, arts and

cultural grants.

The annual Budget Turkey Report spotlights legislative

projects placed in the budget without proper opportunity for public

review and debate...

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2014 Florida TaxWatch Turkey Report4

After the conference process, the full legislative body cannot adjust individual appropriations, they can only vote the entire budget up or down. Because the relative amount of total appropriations added in conference is such a small percentage of the Florida budget, few, if any, lawmakers will vote the budget down because of projects added in conference.

3. Facilitate the checks and balances within the budget process that are granted by the Florida Constitution

The Florida Governor’s line-item veto power is a protection afforded by the Florida Constitution as one of the checks and balances that allow for proper distribution of power in state government. However, another crucial element is the right and responsibility of Florida taxpayers to hold their elected officials accountable for budgeting decisions. Though all budget documents are available to the public, the complicated budget process creates a barrier that prevents all taxpayers from understanding this information. The Budget Turkey Report is intended to show taxpayers the result of this complicated process, where not all decisions are made in the sunshine.

obSERvATIonS on THE 2014 bUdgET pRocESSAs the eyes and ears of Florida’s taxpayers, Florida TaxWatch staff attended every appropriations subcommittee meeting, every appropriations meeting, and each budget conference meeting of the 2014 Florida Legislature. While appropriations issues were generally questioned and debated in subcommittee and committee hearings, most conference committee meetings lasted less than 20 minutes (often much shorter) and included no questions or debate. More often than not, the only individuals speaking during these conference committee meetings were the subcommittee and committee chairs, who accepted budget offers after committee staff read them aloud—usually with no explanation.

The lack of transparency within these conference committee meetings should be a clarion call for increased accountability in Florida’s budgeting process. For example, though conference committee meetings are required to have a one-hour meeting notice, materials were usually unavailable to the public until after the meeting already began, or in many cases, not until the meeting had concluded. The meetings offered no opportunity for public testimony and several were held after 11 p.m., even on weekend evenings.

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2014 Florida TaxWatch Turkey Report 5

During these brief and largely symbolic meetings, the state budget grew by $1.8 billion over the total appropriated by the House budget and by $2.2 billion over the Senate budget. New projects were added during the conference, and were often mentioned during the reading of an offer, but were not always noted as being new. Sometimes these projects were not even mentioned. Virtually no new issues were explained, discussed, questioned or debated.

As was the case last year, at the end of the conference, just before the budget was finalized, two supplemental funding lists totaling $329 million were introduced. These lists, one from the House and one from the Senate, contained increased funding for existing items and many new items that were not part of either the House or Senate budget contained in any of the previous conference offers. Much of the funding was recurring, making it more likely the projects would continue to be funded in the future.

These lists were not read and no project was mentioned. It was only mentioned that each chamber had an available supplemental funding list, and the supplemental lists were then accepted by the corresponding chair without debate.

This is not meant to condemn the budget conference process. Every dollar and every word in the budget must be agreed upon by both chambers. Such a process is probably a necessity, for without some negotiation or discussion behind closed doors, the budget would likely be very difficult to finish. Further, legislators and appropriations staff work very hard for incredibly long hours—including nights and weekends—to reach a budget compromise.

But decisions are still made behind closed doors. Due to this lack of open public debate, the conference should be used exclusively to compromise when the two chambers disagree on funding levels and to decide whether an item funded by only one chamber should be included in the final state budget. This should not be the time to fund new items, particularly funding that goes to a specified private entity or narrow geographic location.

Budgeting Without discipline

Just as the Rule of Law is critically essential in a civil society, so is the integrity, transparency and accountability of the budget process to ensure the highest and best use of the taxpayers’ hard earned money.

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2014 Florida TaxWatch Turkey Report6

WHAT coULd THE TURKEYS bUY?To best contextualize the cost of the 2014 Budget Turkeys, their cost can be applied to critical needs projects and other budget priorities designed to help taxpayers during the 2014 Session. The following is what the $120 million appropriated for this year’s Budget Turkeys could have purchased if applied in other areas of the state budget:

Increase the Tax Credit Scholarship: Fund an additional 24,590 students to receive the Tax Credit Scholarship, increasing the number of students receiving scholarships under the program to 84, 590.

Help Unclog the State Courts: Provide 1,560 new positions in the state court system to reduce backlog and ensue more swift justice.

Reduce the Home and Community Based Services Waitlist: Provide Waiver services for 4,107 more individuals with developmental disabilities who are currently on a Waiver Waitlist through the Agency for Persons with Disabilities.

State Employee Raises:  Provide a $1,048 raise for each of the state’s 114,481 state employees.

Increase Per-Student Funding: Increase per student funding under the Florida Education Finance Program (FEFP) by 3.24 percent in FY 2014-15, rather than the 2.61 percent increase provided by the Legislature in this budget.

A 1 percent reduction in the Communications Services Tax.

A reduction of one-third of 1 percent in the Corporate Income Tax rate.

“Public money ought to be touched with the most scrupulous conscientiousness of honor. It is not the produce of riches

only, but of the hard earnings of labor and poverty.”

Thomas Paine

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2014 Florida TaxWatch Turkey Report 7

pAST govERnoRS’ AcTIon on TURKEYS

YEARNumbER OF

TuRkEYsAmOuNT

OF FlORiDA TAxWATCh

buDgET TuRkEYs:

NumbER &

% VETOED

AmOuNT &

% VETOED

2013 107 $106 million71

66%

$71.1 million

42%

2012 159 $171 million97

61%

$63 million

37%

2011 105 $203 million87

83%

$180.9 million

89%

2010 41 $61 million14

34%

$11.4 million

18.9%

2009* 10 $15 million0

0.0%

0

0.0%

2008** 132 $110 million1

0.8%

$840,000

0.8%

2007 505 $256 million301

60%

$141 million

55%

2006 489 $295 million306

63%

$151 million

51%

2005 413 $240 million252

61%

$125 million

52%

2004 227 $202 million133

59%

$129 million

64%

2003 0 0 n/a n/a

* Governor Crist vetoed only two provisions of the budget, neither of which were spending projects.

** Governor Crist vetoed only three provisions.

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DCF

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from

this

line

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be

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ribu

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thro

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cess

. The

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her

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ojec

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ere

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e H

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ts.

383

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413

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two

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141

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stat

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, whi

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kalo

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stat

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Page 11: 2014 Budget Turkeys

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Page 15: 2014 Budget Turkeys

2014 Florida TaxWatch Turkey Report 15

RESEARCH PROJECT TEAM

All Florida TaxWatch research done under the direction of Dominic M. Calabro, President, CEO, Publisher & Editor. FOR MORE inFORMATiOn: WWW.FlORiDATAxWATCH.ORg

Kurt Wenner, Project leader VP for Tax Research

Robert Weissert &KLHI�5HVHDUFK�2ɝFHU��*HQHUDO�&RXQVHO

Chris Barry 'LUHFWRU�RI�3XEOLFDWLRQV

Morgan McCord &RPPXQLFDWLRQV�&RRUGLQDWRU

Jerry Parrish &KLHI�(FRQRPLVW��'LUHFWRU�RI�7D[:DWFK�&&)

Bob nave 'LUHFWRU�RI�7D[:DWFK�&(3$

Tamara Demko 'LUHFWRU�RI�7D[:DWFK�&+$

laurence D. lavargna 5HVHDUFK�$QDO\VW

gabriella Piloseno 5HVHDUFK�$QDO\VW

7KH�ȴQGLQJV�LQ�WKLV�Report are based on the data and sources referenced. Florida TaxWatch research is conducted with every reasonable attempt to verify the accuracy and reliability of the data, and the calculations and assumptions made herein. Please feel free to contact us if you feel that this paper is factually inaccurate.

7KH�UHVHDUFK�ȴQGLQJV�DQG�UHFRPPHQGDWLRQV�RI�)ORULGD�7D[:DWFK�GR�QRW�QHFHVVDULO\�UHȵHFW�WKH�YLHZ�RI�LWV�PHPEHUV��VWD��([HFXWLYH�&RPPLWWHH��RU�%RDUG�RI�7UXVWHHV��DQG�DUH�QRW�LQȵXHQFHG�E\�WKH�LQGLYLGXDOV�RU�RUJDQL]DWLRQV�ZKR�PD\�KDYH�sponsored the research.

This independent Report�ZDV�PDGH�SRVVLEOH�E\�WKH�JHQHURXV�ȴQDQFLDO�VXSSRUW�RI�)ORULGD�7D[:DWFK�PHPEHUV�

This Report�LV�LQWHQGHG�IRU�HGXFDWLRQDO�DQG�LQIRUPDWLRQDO�SXUSRVHV��ΖI�WKH\�DSSHDU��UHIHUHQFHV�WR�VSHFLȴF�SROLF\�PDNHUV�RU�private companies have been included solely to advance these purposes, and do not constitute an endorsement, sponsorship, or recommendation of or by the Florida TaxWatch Research institute, inc.

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$V�DQ�LQGHSHQGHQW��QRQSDUWLVDQ��QRQSURȴW�WD[SD\HU�UHVHDUFK�LQVWLWXWH�DQG�JRYHUQPHQW�ZDWFKGRJ��LW�LV�WKH�PLVVLRQ�RI�)ORULGD�7D[:DWFK�WR�SURYLGH�WKH�FLWL]HQV�RI�)ORULGD�DQG�SXEOLF�RɝFLDOV�ZLWK�KLJK�TXDOLW\��LQGHSHQGHQW�UHVHDUFK�DQG�DQDO\VLV�RI�LVVXHV�related to state and local government taxation, expenditures, policies, and programs. Florida TaxWatch works to improve the productivity and accountability of Florida government. its research recommends productivity enhancements and explains the VWDWHZLGH�LPSDFW�RI�ȴVFDO�DQG�HFRQRPLF�SROLFLHV�DQG�SUDFWLFHV�RQ�FLWL]HQV�DQG�EXVLQHVVHV�

Florida TaxWatch is supported by voluntary, tax-deductible memberships and private grants, and does not accept government funding. Memberships provide a solid, lasting foundation that has enabled Florida TaxWatch to bring about a PRUH�HHFWLYH��UHVSRQVLYH�JRYHUQPHQW�WKDW�LV�DFFRXQWDEOH�WR�WKH�FLWL]HQV�LW�VHUYHV�IRU�WKH�ODVW����\HDUV�

ABOUT FlORiDA TAxWATCH

FlORiDA TAxWATCH RESEARCH lEADERSHiP

Dominic M. Calabro President & CEO5REHUW�:HLVVHUW��(VT��� &KLHI�5HVHDUFK�2ɝFHU� general CounselKurt Wenner VP for Tax ResearchJerry D. Parrish, Ph.D. Chief Economist

FlORiDA TAxWATCH VOlUnTEER lEADERSHiP

John Zumwalt, iii ChairmanMichelle Robinson Chairman-ElectDavid Mann TreasurerSenator Pat neal SecretarySteve Evans Senior Advisor

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106 N. bronough st., Tallahassee, Fl 32301 o: 850.222.5052 f: 850.222.7476

Copyright © may 2014, Florida TaxWatch Research institute, inc. All Rights Reserved.