State Budget: Governor Charlie Crist Signs $70.4-Billion Budget for Fiscal Year 2010 – 2011 and Vetoes $371 Million in Spending
On May 28, 2010, Gov. Crist signed HB 5001, the general appropriations act for the fiscal year beginning on July 1, 2010. He used his veto power to deny approval to $371 million in budget line items, concentrating on projects of local interest to Senate Ways and Means Chair JD Alexander (R-Lake Wales) and House Full Appropriations Chair David Rivera (R-Miami), who is running for election to the 25th Congressional District seat being vacated by U.S. Rep. Mario Diaz-Balart.
The governor vetoed $211 million in specific spending items and a $160-million "sweep" of transportation trust fund money, which the appropriations bill tied to education spending, and the language linking the $160 million to education spending. Gov. Crist did not veto the education spending that was funded by the money swept from the transportation trust fund. House leaders have said that they are contemplating legal action against the veto because, they argue, the state constitution does not give the governor the authority to veto the provision linking the transportation trust fund sweep to education funding.
Many of the vetoes were directed at Polk County, which is represented by Sen. Alexander. The Polk County area vetoes included $35 million for the University of South Florida Polytechnic campus in Lakeland, $10 million for a pharmacy program at the Lakeland campus, and $12 million for Polk State College.
The Miami-Dade County area, which is represented by Rep. Rivera, saw the veto of a $32.5-million Miami-Dade Health Department-Florida International University project and a $21-million Miami-Dade College project.
The governor also vetoed a reduction in nursing home providers' Medicaid reimbursement rates and a prohibition on using state funds for stem cell research.
Legislative leaders reacted negatively to the vetoes. House Speaker Larry Cretul (R-Ocala) called the governor's actions an "apparent abuse of power." Senate President Jeff Atwater (R-North Palm Beach) said that Gov. Crist was "fabricating" criticisms of the budget process and could put the state's bond rating at risk. Sen. Alexander, who described the line item vetoes as "punitive," said, "I'm just disappointed. It's a petty personal vendetta."
Legislature: Gov. Crist Vetoes Executive Branch Reforms and Insurance Bills
Gov. Crist, who recently left the Republican Party to run for the U.S. Senate as an independent candidate, has vetoed several bills that were top priorities for the leadership of the Legislature's Republican majority and various business interests.
A top priority for Sen. Alexander was reform of the Department of Management Services, a catch-all agency that, among other things, is responsible for procurement and property management. As passed by the Legislature, HB 5611 shifted control of the department from a secretary appointed by the governor to an executive director appointed by the governor and cabinet and required Senate confirmation of other key department officials. On May 28, 2010, Gov. Crist vetoed HB 5611, saying that "requiring the appointment and confirmation of specified members of an agency's leadership team is unprecedented. I am concerned that this bill reflects an increasing encroachment of the legislative branch on the operations of the executive branch."
The governor used a similar analysis in vetoing a bill that was a priority for House leadership and various business organizations, including the Florida Chamber of Commerce. HB 1565 would have imposed new restrictions on agency rulemaking, requiring agencies to analyze a proposed rule's impact on economic growth, private-sector job creation or employment, and private-sector investment. When a proposed rule was found to have an adverse economic impact of $1 million or more over five years, it could not take effect unless ratified by the Legislature. In his May 28 veto letter, Gov. Crist said that rulemaking was part of the executive branch's duty to ensure that laws are faithfully executed and that HB 1565 encroached on this executive branch power. He also said that under the bill, "nearly every rule may have to await an act of the Legislature to become effective. This could increase costs to businesses, create more red tape, and potentially harm Florida's economy."
On June 1, Gov. Crist vetoed SB 2044, a 110-page property insurance bill that was largely the product of negotiations between various insurance interests and the Florida Office of Insurance Regulation. Among other things, the bill would have increased minimum surplus requirements for residential property insurers, expanded regulatory authority over insurers' affiliates and managing general agents, imposed new restrictions on public adjusters, and imposed restrictions on the inspections that qualify houses for hurricane-loss mitigation discounts. The bill also would have allowed insurers to include additional cost factors in rate filings that were subject to expedited review. Although the bill had the support of Insurance Commissioner Kevin M. McCarty, Gov. Crist vetoed it, complaining that the mitigation inspection provisions could unfairly penalize some homeowners and that the revisions to the expedited rate review process could make it easier for insurers to increase premiums. He said, "During these very difficult economic times, Florida's consumers should not have to be concerned with an additional premium increase to their policy.
Gov. Crist also vetoed a bill that limited the workers' compensation reimbursement rates for repackaged or relabeled drugs. HB 5603 was a priority for workers' compensation carriers and employers. After the bill passed, Associated Industries of Florida described it as a "huge victory for the business community" that could reduce workers' compensation costs by more than $100 million a year. The bill also had the support of State CFO Alex Sink, the leading Democratic candidate for governor. Opposition came from labor interests and the medical community. In his May 28 veto letter, Gov. Crist objected to the way the workers' compensation issue was added to a Department of Financial Services reorganization bill by a budget conference committee and expressed his concern "that implementing this bill without additional review could result in numerous unintended consequences that could ultimately adversely impact injured workers."
Utility Regulation: Public Service Commission (PSC) Nominating Council to Interview 28 Applicants for Two PSC Vacancies
On June 1, 2010, the Florida PSC Nominating Council voted to interview 28 applicants for two current PSC vacancies, out of a total of 60 applicants.
The two vacancies were created when the Senate rejected two of Gov. Crist's PSC appointees, David Klement and Benjamin "Steve" Stevens.
The applicants who received the most votes from the nominating council were former Sen. Curt Kiser, who currently serves as general counsel of the PSC; Senate staff member Kevin Wiehle; retired nuclear engineer James Baumstark, and term-limited Sen. Lee Constantine (R-Altamonte Springs). Other applicants who will be interviewed include Rep. Ronald Brisé (D-North Miami); former PSC member Leon Jacobs; former PSC Executive Director Mary Bane; and former NFL player Gary Huff, who is currently the chief financial officer of the Florida State University athletic department.
The nominating council consists of six legislators and six members of the public appointed by the House Speaker and the Senate President. It will select three nominees for each of the vacancies. Gov. Crist is required to make his appointments from the candidates selected by the nominating council. Interviews will begin on June 10.
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