Public Education: Governor Charlie Crist Vetoes Teacher Merit Pay Bill, Fueling Rumors About His Political Future
On April 15, 2010, Gov. Crist vetoed Senate Bill 6, the teacher merit pay bill that was a top priority for Republican leaders of the Legislature and business interests. The Florida Education Association led the campaign against the bill, with support from associations of school administrators and school boards. The governor’s office reported that he had received more than 100,000 calls and e-mails regarding the bill, the vast majority of which urged a veto.
The major features of the bill were provisions that would have abolished tenure for teachers hired after the bill took effect, and provisions that based teachers’ pay on a performance evaluation that included improvements in student performance as one of several factors.
The veto apparently reflected a change in the governor’s position. He accused legislative leaders of ignoring the expressed will of the public. In announcing the veto, he said, “Quite frankly it reminds me of what happened with the health care bill in Washington where members of my party criticized the Democrats for sort of jamming something down their throat, and then here, about a month later after that happened, the very same thing happens here in education.”
The reaction from leading Republicans emphasized their disappointment with the governor’s actions. Former Gov. Jeb Bush said, “I am disappointed by the veto of Senate Bill 6. By taking this action, Gov. Crist has jeopardized the ability of Florida to build on the progress of the last decade, which includes raising student achievement across the board, narrowing the achievement gap for poor and minority students, and improving graduation rates.”
Sen. John Thrasher (R-St. Augustine), who sponsored the bill, said that while he did not expect any effort to override the veto, the issue was likely to come up again in the 2011 legislative session. “I’m confident that this is an idea that’s going to sweep across America,” he said. Senate President Jeff Atwater (R-North Palm Beach) and House Speaker Larry Cretul (R-Ocala) both referred to the extensive committee hearings and floor debates that preceded enactment of the bill.
Opponents of the bill, including House Minority Leader Rep. Franklin Sands (D-Weston), Chief Financial Officer and Democratic candidate for governor Alex Sink, and Florida Education Association President Andy Ford all characterized SB 6 as “radical.” Mr. Ford said, “SB 6 was formulated without an ounce of input from anyone within the public school community. Teachers, administrators, and parents weren’t consulted and their views of this radical legislation were dismissed repeatedly by many legislators.”
Gov. Crist’s veto of a top Republican priority has fueled speculation that he may be on the verge of announcing that he will drop out of the Republican primary for the U.S. Senate and instead run as an independent. Answering questions about a possible independent candidacy during a televised debate with his opponent, former state House Speaker Marco Rubio (R-Miami) on March 28, 2010, the governor explicitly said that he was running as a Republican. By April 16, 2010, one day after the veto, he was not as clear. When asked the same question, he said, “I’m not thinking about that today. We’ll look at that later on.” Many observers considered that response an indication that he is at least giving serious consideration to running an independent campaign.
Politics: Latest Polls Give Marco Rubio a Strong Lead Over Gov. Crist in the Republican U.S. Senate Primary; Quinnipiac Poll Gives Gov. Crist a Slight Lead Running as an Independent
According to a Quinnipiac University Polling Institute poll of registered voters released on April 15, 2010, Mr. Rubio now leads Gov. Crist in the Republican primary for U.S. Senate by 56 percent to 33 percent, with 10 percent undecided. The poll also found that the approval rating for Gov. Crist’s performance in office was at his all-time low of 49 percent, and his disapproval rating was at an all-time high of 39 percent.
Among registered Republicans, Mr. Rubio had a strong lead on the questions of who is more trusted to do in office what he promises on the campaign trail (54 percent to 30 percent), who most shares the respondent’s values (56 percent to 32 percent), and who is the more consistently conservative (59 percent to 27 percent).
The poll identified what may be viewed as a gender gap. Republican men favored Mr. Rubio by 63 percent to 28 percent, while Republican women favored Mr. Rubio by 49 percent to 39 percent.
In a two-way general election race against the presumptive Democratic candidate, U.S. Rep. Kendrick Meek (D-17th Congressional District), the poll indicated that either Gov. Crist or Mr. Rubio would win. The results of the Crist-Meek matchup gave Gov. Crist 48 percent to Rep. Meek’s 34 percent, with 14 percent undecided. The Rubio-Meek matchup showed 42 percent for Mr. Rubio, 38 percent for Rep. Meek, and 17 percent undecided.
The Quinnipiac poll also is the first public poll to ask about a hypothetical three-way race, with Gov. Crist running as an independent. In that matchup, Gov. Crist has the support of 32 percent of respondents, Mr. Rubio has 30 percent, Rep. Meek has 24 percent, and 13 percent are undecided.
The poll of 1,250 registered voters, including 497 registered Republicans, was conducted from April 8 through April 13, 2010. The margin of error is 2.8 percentage points for the general questions and 4.4 percentage points for the Republican-only questions.
The primary results are consistent with a poll released by Rasmussen Reports on April 12, 2010. In that poll of likely Republican voters, Mr. Rubio leads Gov. Crist by 57 percent to 28 percent. Gov. Crist is viewed very favorably or somewhat favorably by 55 percent of respondents, with 44 percent of respondents viewing him very unfavorably or somewhat unfavorably and one percent not sure. Of the respondents, 72 percent view Mr. Rubio very favorably or somewhat favorably, while 19 percent view him very unfavorably or somewhat unfavorably and nine percent are not sure.
The Rasmussen survey of 500 Republican likely voters was conducted on April 8, 2010 and has a margin of error of 4.5 percentage points.
State Budget: Legislative Leaders Announce Agreement on the Broad Outline of a 2010 – 2011 Budget, Allowing Conference Committee Negotiations to Begin
On April 19, 2010, House Speaker Larry Cretul (R-Ocala) and Senate President Jeff Atwater (R-North Palm Beach) announced that they had reached an agreement on the broad outlines of a state budget for the 2010 – 2011 fiscal year. The announcement came after a weekend in which they canceled the first meeting of the budget conference committee just minutes before it had been scheduled to start. Ordinarily, the conference process to resolve differences between the two chambers begins once House and Senate leaders agree on the total amount to be spent and the allocations among various areas of spending such as health and human services, transportation and economic development, education, and general government.
This year, even though the two chambers passed their respective appropriations bills on March 31, 2010 and April 1, 2010 leaders did not agree on a bottom line or allocations until April 19, 2010.
The biggest difference between the chambers arose out of the Senate’s reliance on approximately $880 million of federal Medicaid funding, known as Federal Medical Assistance Percentages (FMAP), which has yet to be approved by Congress. The state’s Washington, D.C. office has reported that there is no assurance that Congress will approve the additional funding. The chambers also differed in their approach to federal stimulus and health care spending, which could impose additional spending burdens on the state. Other differences included the House’s use of almost $450 million in transportation trust fund money to balance the budget and the House’s commitment to maintain state reserves of approximately $1.8 billion.
Senate Ways and Means Committee Chairman JD Alexander (R-Lake Wales) describes the 2010 – 2011 budget as “one of the most complicated budgets we’ve had in my 12-year tenure.”
On April 19, 2010, Rep. Cretul and Sen. Atwater sent e-mails to legislators stating that the conference process was back on track, the staffs of the two chambers had been working diligently, and the leaders were ready to proceed. It is not clear, however, that the late start will enable the Legislature to complete its business within the 60 days specified in the Florida Constitution. The state constitution requires that final conference reports on appropriations bills be placed on legislators’ desks at least 72 hours before they can be voted on, making April 27, 2010 the effective deadline for completion of budget negotiations if the legislative session is to end on time on April 30, 2010. Although an on-time finish is possible, an extended session or special session of the Legislature may be needed.
Health Care: House Hears Medicaid Reform Proposal; Senate Committee Rejects Gov. Crist’s Nomination for Health Care Administration Secretary
The full House took up the majority’s plan to restructure Medicaid on April 15, 2010. The chamber is expected to vote on final passage of the bills, HB 7223 and HB 7225, on April 19, 2010. The bills were the product of the Strategic and Economic Planning Council, where they each passed with only one dissenting vote.
Over a five-year phase-in period, the House plan would move almost all of Florida’s 2.7-million Medicaid recipients into HMOs, provider service networks, and other managed care plans. Currently, Medicaid managed care covers approximately 1.4 million patients in five counties. The Senate has passed a plan that would extend Medicaid managed care to 19 counties and would request waivers from the federal government to allow copayments, deductibles, and fee schedules.
State spending for Medicaid currently exceeds $19 billion.
Medicaid also played a role in the decision of the Senate Health Regulation Committee on April 13, 2010, to reject confirmation of Gov. Crist’s nominee for secretary of the Agency of Health Care Administration (AHCA). Tom Arnold has been serving as secretary ever since the previous secretary, Holly Benson, resigned to run for attorney general. Previously, Mr. Arnold was the AHCA official in charge of Medicaid.
His nomination was rejected on a 4-3 vote, which did not split along party lines. Committee Chair Sen. Don Gaetz (R-Niceville) said, “Those who are stewards of the Florida Medicaid program haven’t gotten it yet. They’re not taking seriously the actions of the Legislature on fraud and abuse.”
Gov. Crist defended his nominee, saying, “I’d like to take a chance to review it and see if he can continue to serve.” Mr. Arnold’s future is not clear. His name is not on the list of appointments to be considered by the Senate Ethics and Elections Committee on April 20, 2010.
Economy: Florida Unemployment Rose to 12.3 Percent in March, Setting Another Modern-Era Record
Florida’s seasonally adjusted unemployment rate rose to 12.3 percent in March 2010, which is the highest rate since state unemployment data began being compiled in 1970, according to a report released on April 16, 2010, by the Agency for Workforce Innovation. The Florida unemployment rate is now 2.6 percentage points higher than the national rate of 9.7 percent.
The March 2010 rate is 0.1 percentage points higher than the previous month’s rate and is 2.7 percentage points higher than the March 2009 rate of 9.6 percent.
In March, the Florida unemployment rate was fifth-highest in the country, after Michigan (14.1 percent), Nevada (13.4 percent), and California and Rhode Island (12.6 percent each).
The counties with the highest unemployment rates were Flagler County (16.6 percent), Hernando County (15.1 percent), Marion County (15.0 percent), St. Lucie County (14.6 percent), and Hendry County (14.1 percent). The counties with the lowest unemployment rates were Liberty County (7.3 percent), Monroe County (7.7 percent), Leon County (8.2 percent), and Alachua County (8.4 percent).
In its February 2010 unemployment report, the Agency for Workforce Innovation noted one positive sign: For the first time since November 2007, the state had experienced positive month-over-month job growth. In March 2010, however, the state returned to its recent pattern, with a net job loss of 4,000 jobs.
Campaign Finance: First Quarter Reports Show Strong Fundraising Results for Major Candidates of Both Parties
State candidates filed their campaign finance reports covering the first three months of 2010 on April 15, 2010. The reports show strong results for major candidates in both parties. Among the highlights:
- Attorney General Bill McCollum, the leading Republican candidate for governor, raised $1,398,343 during the quarter. His total contributions were $4,669,475 and he has $3,876,126 in the bank.
- Chief Financial Officer Alex Sink, the Democratic gubernatorial candidate, raised $1,105,542. Her total contributions are now $6,174,850 and she has cash on hand of $5,021,722.
- The two Democratic candidates for Attorney General, Sen. Dave Aronberg (D-Greenacres) and Sen. Dan Gelber (D-Miami Beach), have total contributions of $915,280 and $888,818, respectively. Sen. Aronberg has cash on hand of $704,457 and Sen. Gelber has cash on hand of $587,132.
- Lt. Gov. Jeff Kottkamp leads his Republican opponents for attorney general with $590,474 in contributions and $515,708 in cash on hand. Pam Bondi, an assistant state attorney from Tampa, has raised $421,534 with $371,197 in cash on hand. Holly Benson, a former state legislator from Pensacola who has also served as secretary of two departments under Gov. Crist, has raised $401,282 with cash on hand of $313,602.
- In the race for chief financial officer, Sen. Jeff Atwater (R-North Palm Beach) has a strong lead over his likely Democratic opponent, former Rep. Loranne Ausley (D-Tallahassee). Sen. Atwater has raised $2,038,878 and has $1,925,111 in the bank. Ms. Ausley has $464,480 in total contributions and cash on hand of $346,755.
- The Republican candidate also has a strong fundraising lead in the contest for agriculture commissioner. U.S. Rep. Adam Putnam (R-12th Congressional District) has raised $1,436,161, with cash on hand of $1,197,183. His likely Democratic opponent, former Tallahassee Mayor Scott Maddox, has raised $324,783 and has cash on hand of $314,100.
- In state Senate District 12, one of the most hotly contested senate races of 2010, Republican Hillsborough County Commissioner Jim Norman has raised $450,560 and has cash on hand of $352,475. His primary opponent, Rep. Kevin Ambler (R-Tampa), reports total contributions of $266,315 and cash on hand of $71,479.
- In the contest to replace Sen. Atwater in Senate District 25, Rep. Ellyn Bogdanoff (R-Ft. Lauderdale) has raised $425,404 with $270,716 in cash on hand. Her primary opponent, Rep. Carl Domino (R-Juno Beach), has raised $96,500 with cash on hand of $84,301. The Democratic candidate, Rep. Kelly Skidmore (D-Boca Raton), reports total contributions of $109,821 and cash on hand of $83,440.
Public Policy News Alert is part of our ongoing commitment to providing up-to-the-minute information about pressing concerns or industry issues affecting our clients and our colleagues. If you have any questions about this alert or would like to discuss these topics further, please contact your Foley attorney or any of the following individuals:
Marnie George
Tallahassee, Florida
850.513.3398
[email protected]
Michael P. Harrell
Tallahassee, Florida
850.513.3373
[email protected]
Robert H. Hosay
Tallahassee, Florida
850.513.3382
[email protected]
Jonathan P. Kilman
Orlando, Florida
407.244.3256
[email protected]
Thomas J. Maida
Tallahassee, Florida
850.513.3377
[email protected]
Leonard E. Schulte
Tallahassee, Florida
850.513.3380
[email protected]
Marnie George of The George Group assists Foley on a variety of government and public policy matters as a consultant.