Budget panel OKs $4 billion in stimulus
TALLAHASSEE (AP) – A special legislative panel Wednesday approved $4 billion in federal stimulus money for spending during the current budget year and used some of those dollars to avert a deficit.
The Legislative Budget Commission obtained deficit reduction relief thanks to nearly $1.9 billion in stimulus money Florida is getting during the 2008-09 budget year for Medicaid, which provides health care for the needy.
The stimulus law increased the federal government’s share of the program, and that freed up $913 million in state dollars previously appropriated for Medicaid. It’s more than enough to fill a $700 million hole in the present budget that runs through June 30.
The deficit resulted from continued shortfalls in taxes, fees and other revenues because of the global recession and collapse of Florida’s housing market.
Besides the Medicaid money, other major stimulus allocations this year are about $1.4 billion for transportation and $580 million for education.
The commission also approved stimulus dollars for crime victims; public assistance administration; grants for weatherizing homes; senior citizen nutrition and employment programs; child support enforcement; and various programs to help unemployed workers and youth.