Florida lawmakers seeking $2.3 bln of budget cuts

By Michael Peltier

TALLAHASSEE, Florida (Reuters) - Facing an economic downturn not seen since the Great Depression, Florida lawmakers are meeting to solve a $2.3 billion revenue shortfall for the fiscal year that ends June 30.

The Republican-dominated legislature was called back on Monday for a two-week special budget-cutting session. Party leaders rejected a Democratic-backed proposal to increase state revenues to help close the gap.

Instead, lawmakers are expected to cut spending and transfer money from existing trust funds to balance Florida's $66 billion state budget, which already has been cut because of drops in previous revenue estimates.

"It would be easy for some of us to increase the burden on families and small businesses," said House Speaker Ray Sansom, R-Destin. "However, I do not believe that is the right path for us to take."

Most lawmakers got a first glimpse of possible cuts on Monday, but negotiations were expected to continue over the weekend. A final list of cuts is not expected until early next week. House and Senate lawmakers appear in agreement on many major issues after staff from each chamber met for weeks prior to Monday's session opening.

Leading the list of proposed cuts is $500 million in Medicaid funding for in-patient hospital and nursing home care. Nursing homes alone would face a $220 million, or 10 percent,

cut.

"This would be catastrophic," Edwin Bodo, a lobbyist for the Florida Association of Homes for the Aging, told Senate health care budget committee members.