The Budget and Florida Fiscal Year 2011
Having steered the economy back from the brink of a depression, the Administration is committed to moving the nation from recession to recovery by sparking job creation to get millions of Americans back to work and building a new foundation for the long-term prosperity for all American families. To do this, the 2011 Budget makes critical investments in the key areas that will help to reverse the decline in economic security that American families have experienced over the past decade with investments in education, clean energy, infrastructure, and innovation. But even as we meet the challenge of the recession and work to build an economy that works for all American families, we must also change the way Washington does business – ending programs that don’t work, streamlining those that do, cracking down on special interest access, and bringing a new responsibility to how tax dollars are spent. The President’s Budget takes the steps to help jumpstart job creation, works to strengthen the economic security of American families and makes the tough choices to put our nation back on the path to fiscal responsibility. For Florida, the President’s Budget means lower taxes, better teachers and classrooms, and important investments in our roads, highways, and airports. It means more ways for our students to afford college. The Budget means expanded support for the families of our servicemembers. The President’s plan offers important support for states as they face very difficult choices, expanding resources for Medicaid and law enforcement. Most importantly, the Budget lays a new foundation of economioc growth and job creation for Florida and the nation.
Key Investments for Florida
Tax cuts for 7.1 million families. $2.7 billion for schools, students, and teachers. $2.6 billion to fix and expand the state’s network of roads and highways, modernize airports, and expand water and sewer infrastructure. $2 billion in new funding for Pell Grants to help families pay for college. $1.2 billion for housing assistance.
Create Jobs, Cut Taxes, and Support Our Families
The President’s Budget is a plan to create jobs, help middle-class families, and get America moving again. It is a major step toward a new foundation for job creation and long-term economic growth. It cuts taxes, creates innovative programs to help families, and invests in our children’s future. Key Budget Highlights:
Extend for another year the broadest tax cut in American history – the Making Work Pay Tax Credit – for 110 million American families, including 7.1 million families in Florida. Increase the child care tax break by providing a 35 percent credit for middle-class families earning up to $85,000 a year and at least some credit to families earning up to $115,000. Families could claim up to $3,000 in expenses for one child or $6,000 for two children. Many middle-class families with two children will see value of the credit nearly double, from $1,200 to $2,100. Expand child care funding for working parents by adding $1.6 billion to the Child Care Development Fund, the largest one-year increase in 20 years, to serve an additional 235,000 children. For Florida, the Budget includes $329 million in child care assistance. Deploy future TARP funds to assist homeowners threatened with foreclosure and small businesses needing access to affordable credit.
Prepare Our Children for the Jobs of the Future
From unlocking the cures of tomorrow to creating clean energy industries, from growing our economy and creating jobs to securing our nation in the years to come, there is one constant in addressing these challenges: they all depend on providing our children with a world-class education. It is a central pillar of the new foundation we must lay for our economy. Key Budget Highlights:
$2.7 billion for Florida to develop better teachers and classrooms to meet 21st century challenges – part of a record level of funding for the nation’s schools to foster educational excellence, improve student achievement, and reward successful outcomes to prepare our nation’s children for global competitiveness. $900 million nationwide – a $354.4 million increase – for School Turnaround Grants to help provide the resources needed to turn around the lowest-performing schools. $1.4 billion to enhance the President’s Race to the Top challenge and to expand the competition from states to school districts that are ready for comprehensive reform. $300 million in new grants to develop and implement curricula and improve teaching and learning in science and math. $150 million to competitive grants for school districts, nonprofits, and other organizations to test, validate, and scale promising strategies to improve teaching and accelerate student learning in science, technology, engineering, and mathematics. Raise the maximum Pell award to $5,710, and increase the funding available to Florida students to $2 billion. This will help more than 523,000 students in the state to afford college. Make it easier for low-income students to repay their loans by reducing monthly payments and can have their remaining debt forgiven after 20 years.
Help Small Businesses to Create Jobs and Get the Economy Moving Again
The President’s Budget supports small businesses in Florida, which are creating economic opportunities and putting people to work throughout the state. The Budget expands important
support for businesses and entrepreneurs to give them access to capital and expertise to hire more workers and more effectively compete in the 21st century economy. Key Budget Highlights:
A one-year elimination of the tax on capital gains from new investments in small business stock. The Recovery Act allowed a 75 percent exclusion from capital gains taxes on small business investments. $17.5 billion in 7(a) loan guarantees that will help small businesses operate and expand, with an expanded loan level from $2 million to $5 million. $7.5 billion in guaranteed lending for commercial real estate development and heavy machinery purchases. $250 million to support affordable lending in low-income communities through targeted support to Community Development Financial Institutions. Extend through 2010 the Recovery Act provision that allows small businesses to immediately expense up to $250,000 of qualified investment. $3 billion in Small Business Investment Company loans to support new businesses and new jobs through early-stage and mezzanine small business financing. $25 million in direct microloans to support small loans to emerging entrepreneurs and other promising but "un-bankable" borrowers. $250 million in financial support will help these local financial institutions offer affordable loans to small businesses, consumers, nonprofit developers, and home buyers in communities that lack access to affordable credit. $534 million, a 20 percent increase, to launch a National Export Initiative, part of a broader federal effort to open new markets to American products and create new American jobs.
Make Health Care More Affordable, Accessible, and Secure
The President is committed to ensuring that every American has access to affordable health care. The Budget makes important investments to improve the quality of health care, make it more affordable and more secure. Key Budget Highlights:
$10.9 billion for Florida to provide health coverage to low-income children and families. Bolster prevention activities by expanding community health activities, strengthening the public health workforce, and improving detection and monitoring of chronic disease. $2.5 billion nationwide for health centers to provide affordable high-quality primary and preventative care to underserved populations. New Medicare and Medicaid initiatives to provide higher quality care at lower costs. $79 million to strengthen regional and local partnerships among rural health care providers, increase the number of health care providers in rural areas, and improve the performance and financial stability of rural hospitals. $169 million to place doctors, nurse practitioners, and dentists in medically underserved areas to improve access to needed health care services.
Invest the Foundation of the Economy: Highways, Airports, and Infrastructure
Broken, outdated infrastructure holds back job creation and hurts small businesses. The President’s Budget invests in Florida, putting people to work to rebuild roads, highways, and key infrastructure while paving the way to a stronger economic future. Key Budget Highlights:
$2.4 billion for construction and improvements to roads, highways, and airports throughout Florida. $107.2 million to modernize and expand clean, safe drinking water across Florida. $255 million for the combined efforts of the Department of the Interior and the Army Corps of Engineers to restore the South Florida Ecosystem, including the Florida Everglades. This funding includes continued construction of five significant restoration projects: Picayune Strand, Site One Impoundment, Indian River Lagoon South, Kissimmee River, and South Dade (C-111). $4 billion to create a National Infrastructure Investment Fund to invest in projects of regional or national significance. The Fund will provide grants or loans or a blend of both for projects, and will leverage non-federal resources including private capital. Make permanent the Build America Bonds initiative, an innovative way of financing infrastructure and other investments, which provides significant help to cities and reduces borrowing costs. Build on the $7.2 billion Recovery Act program to expand broadband deployment with an additional $418 million to expand broadband services to rural communities. More than $1 billion to modernize the nation’s air traffic system to improve the efficiency, safety, and capacity of the aviation system. Build on the historic $8 billion Recovery Act down payment for high-speed rail with another $1 billion, creating jobs and sparking transportation innovation across the country.
Honoring Our Military and Our Veterans
The military families and more than 1.7 million veterans who call Florida home understand that, to keep America safe, we must invest in all elements of our national power: defense, diplomacy, and economic development. In addition, recognizing the extraordinary commitment and sacrifice of our men and women in uniform, the Administration continues its efforts to support military families and to provide our veterans with the support and resources that they deserve. Key Budget Highlights:
$60.3 billion for the VA, with $50.6 billion in advance appropriations so that medical care for the nation’s Veterans is not hindered by budget delays in Congress. Build on the historic increase in VA funding with a 20 percent total increase since 2009. A pay raise to keep military pay in line with the private sector. An average military housing allowance increase of 4.2 percent, as well as monthly special skillbased payments, enlistment and reenlistment bonuses, and other benefits.
$1.1 billion to expand affordable, high-quality child care services for military families. $1.9 billion to help families meet the challenges brought on by repeated deployments and family separations through expanded counseling and assistance services. $85 million for enhanced career and educational opportunities for military spouses through tuition assistance and federal internship programs. High-quality medical care to servicemembers, their families, and retiree beneficiaries, including support for wounded warrior transition units and centers of excellence in vision, hearing, traumatic brain injury, and other areas to continuously improve the care provided to wounded, ill, and injured servicemembers. Allow, for the first time, highly disabled veterans who are medically retired from service to be eligible for concurrent receipt of disability benefits from VA in addition to Department of Defense retirement benefits.
Develop New Jobs in a Clean Energy Economy
We must continue our efforts to build a clean energy economy here at home. Doing so has the potential to create millions of new industries and new jobs – jobs that cannot be shipped overseas. Around the globe, countries and companies see the job-creating potential of clean energy and are moving aggressively to lead the way. Our challenge is to be at the head of that pack; if we lead, we will grow our economy, create jobs, and leave a stronger, more secure country to our children. Key Budget Highlights:
$5.1 billion for the Department of Energy's Office of Science, including $1.8 billion for basic energy sciences to discover novel ways to produce, store, and use energy. $54.5 billion in loan guarantees for nuclear power facilities. As much as $5 billion in loan guarantees for innovative energy efficiency and renewable energy projects. $73 million – a $14 million increase – to build agency capacity to review and permit renewable energy projects on federal lands. The Interior Department has set a goal to permit at least 9,000 megawatts of new solar, wind, and geothermal electricity generation capacity on Interior-managed lands by the end of 2011. $545 million for advanced coal climate change technologies to focus resources to develop carbon capture technologies with broad applications to advanced coal power systems, existing power plants, and industrial sources. $300 million for the Advanced Research Projects Agency–Energy to accelerate game-changing energy technologies in need of rapid and flexible experimentation or engineering. Nearly $2.4 billion, an increase of $113 million, for energy efficiency and renewable energy programs including $302 million for solar energy, $220 million for biofuels and biomass R&D, $325 million for advanced vehicle technologies, and $231 million for energy efficient building technologies. $793 million for clean energy activities and civilian nuclear energy programs, including research and development and infrastructure programs.