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Florida economy needs relief

Steven White, In Motion Staff Writer

Issue date: 3/1/09 Section: Opinion
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While the faltering global and domestic economies still hold Florida tight in their grip, relief could soon arrive for struggling Floridians in the form of federal aid. With the Obama Administration's first economic stimulus plan signed into law, Floridians may see relief sooner than later. There is no question that Florida's economy is in trouble. The Florida Department of Children and Families reported in Jan that Florida led the nation with food stamp requests, an astonishingly 1 in 10 families are currently enrolled in the program. The unemployment rate has climbed to 8.1 percent, reported in Dec by the United States Department of Labor. The state government was faced with spending cuts in a $2.8 billion budget deficit-elimination package passed in the Florida Legislature.

The American Recovery and Reinvestment Plan is defined as a nationwide effort to create jobs and jumpstart growth and transform our economy for the 21st century, according to the White House. In concern to Florida's citizens the plan sets out to create or save an estimated 218,300 jobs over two years, with up to 90 percent of these jobs in the private sector. The plan also provides a work pay tax cut of up to $800 for an estimated 6,890,000 workers and their families. This tax cut is designed to pay out immediately into workers' paychecks. The plan will also make the 195,000 families with college students eligible for a new American Opportunity tax credit of $2,500 for four years of college. Lastly the plan sets out to offer an additional $100 per month in unemployment insurance benefits to the 736,000 unemployed workers in Florida.

While this relief isn't exactly the saving grace Florida needs to put it's unemployed back to work it is a step in the right direction. Since the plans inception, Florida Governor, Charlie Crist has assured Floridians that we will get our fair share from this plan. There is, however, a catch to this plan in order for Florida to reap the benefits. Our state budget must maintain or increase spending to qualify for the aid. The state must also adhere to additional guidelines in order to receive additional federal funding for Medicaid and education. Medicaid coverage must be increased and education must spend at least as much as it did in the year 2005-2006 to receive an educational stimulus.

Florida has cut Medicaid coverage in order to reduce costs and also cut the education budget by $600 million since 2006. Florida's two Senators, Mel Martinez and Bill Nelson were able to insert dialogue in the bill that would allow our state to be waived the educational requirements. This still leaves Florida with the dilemma of increasing Medicaid coverage in an already tight budget.

After Gov. Crist appeared with President Obama while he was campaigning for the American Recovery and Reinvestment Plan in Fort Myers, Crist believes his relationship with the president can help overcome these issues. "I would think, hope and pray if we do need to ask for a waiver, that would be well received by the new administration," said Crist in Fort Myers, but hopes and prayers may not be enough to insure Florida's eligibility.

As time passes by Florida's economic problems become greater and the hardship is passed down to the citizens of this state. When President Barack Obama signed the new stimulus plan into law on Feb 17 he proclaimed "We have begun the essential work of keeping the American dream alive in our time." But with Gov. Crist's high hopes for this stimulus, only time can tell whether or not struggling Floridians can receive the benefits.

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