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Florida state budget and finances

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Florida budget and finances
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General information
Budget calendar:
Annual
Fiscal year:
2015
State credit rating:
AAA (as of 2014)
Current governor:
Rick Scott
Financial figures
Total spending (state and federal funds):
$73.6 billion (estimated for 2014)
Per capita spending:
$3,697 (estimated for 2014)
Total state tax collections:
$34.6 billion (2013)
Per capita tax collections:
$1,765 (2013)
State debt:
$197.9 billion (as of 2014)
Per capita state debt:
$10,243 (as of 2014)
State budgets and finances
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Total state expendituresState debtTax policy in Florida
Note: This page utilizes information from a variety of sources. As such, the currency of the information varies somewhat. The information presented on this page reflects the most recent data available as of February 2015.
Between fiscal years 2013 and 2014, total spending in Florida increased by approximately $3.6 billion, from $70 billion in fiscal year 2013 to an estimated $73.6 billion in 2014. This represents a 5.1 percent increase. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned Florida a credit rating of AAA.[1][2][3]
In 2014 total estimated spending in Florida amounted to $73.6 billion. Florida dedicated 31.8 percent of its budget to Medicaid in 2013, the third-largest portion in the nation.

Spending

Definitions

The information below comes from the National Association of State Budget Officers (NASBO). These spending figures are broken into three broad categories in order to facilitate comparison between the states.[3]

  • State funds: State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
  • Federal funds: Federal funds are "funds received directly from the federal government."
  • Total spending: Total spending is calculated by adding together the totals for state and federal funds.

These figures exclude spending from the sale of bonds.

2014 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.[3]

Total estimated spending in Florida amounted to $73.6 billion, highest among its neighboring states. Florida's estimated per capita spending was lowest among its neighbors at $3,697.

Total estimated state spending, FY 2014 ($ in millions)
State State funds Federal funds Total spending Population Per capita spending
Florida $48,135 $25,416 $73,551 19,893,297 $3,697.28
Alabama $14,605 $9,288 $23,893 4,849,377 $4,927.02
Georgia $29,545 $11,834 $41,379 10,097,343 $4,098.01
Mississippi $10,479 $8,197 $18,676 2,994,079 $6,237.64
South Carolina $14,445 $6,993 $21,438 4,832,482 $4,436.23
Per capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census estimates.[4]
Source: National Association of State Budget Officers

Spending by function

See also: State spending by function as a percent of total expenditures
Breakdown of spending by function in FY 2013
Source: National Association of State Budget Officers

State spending in Florida can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.[3]

Florida dedicated the bulk of its budget in 2013 to Medicaid at 31.8 percent, a larger percentage of any of its neighboring states.

State spending by function as a percent of total expenditures, FY 2013
State K-12 education Higher education Public assistance Medicaid Corrections Trans-
portation
Other
Florida 19.3% 8.5% 0.3% 31.8% 3.9% 10.9% 25.4%
Alabama 20.4% 19.9% 0.2% 22.8% 2.4% 6.5% 27.7%
Georgia 24.1% 19% 0.1% 21.3% 3.7% 5.7% 26.2%
Mississippi 16.4% 16.1% 5.9% 26.1% 2% 6.7% 26.7%
South Carolina 17.6% 19.5% 0.4% 22% 2.7% 5.4% 32.4%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Spending trends

Between 2009 and 2013, the portion of Florida's budget dedicated to Medicaid rose from 26.2 percent to 31.8 percent. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).[3][5][6][7][8]

Spending by function from 2009 to 2013 (as percentages)
Year K-12 education Higher education Public assistance Medicaid Corrections Transportation Other
2013 19.3% 8.5% 0.3% 31.8% 3.9% 10.9% 25.4%
2012 18.8% 7.1% 0.3% 30.6% 4.2% 11% 28.1%
2011 21.8% 8.2% 0.3% 29.2% 4.4% 9.6% 26.7%
2010 20.5% 7.7% 0.3% 30.0% 4.8% 9.4% 27.2%
2009 19.5% 9.3% 0.3% 26.2% 4.9% 9.9% 29.8%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Revenues

2013 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Population" and "Per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "Population" and "Per capita revenue" have not been abbreviated.[9]

Florida's total tax collections in 2013 amounted to $34.6 billion, highest among its neighboring states. Florida's per capita tax collections were lower than any of its neighboring states at $1,765.

State tax collections by source ($ in thousands)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes Total 2013 population Per capita collections
Florida $360 $28,526,653 $1,993,965 N/A $2,071,710 $1,995,790 $34,588,478 19,600,311 $1,764.69
Alabama $322,300 $4,707,375 $490,475 $3,202,520 $382,202 $161,597 $9,266,469 4,833,996 $1,916.94
Georgia $61,052 $7,408,422 $744,401 $8,772,227 $797,255 $10,795 $17,794,152 9,994,759 $1,780.35
Mississippi $24,122 $4,571,294 $530,010 $1,755,424 $415,980 $105,895 $7,402,725 2,992,206 $2,474.00
South Carolina $8,549 $4,476,982 $439,843 $3,357,518 $386,669 $51,744 $8,721,305 4,771,929 $1,827.63
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
Florida tax collections by source in 2013
Source: Tax Policy Center

The table below lists 2013 tax collections by source as percentages of total collections. Sales taxes and gross receipts accounted for the vast majority of tax collections in Florida, amounting to 82.5 percent of total collections.[9]

State tax collections by source (as percentages)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes
Florida 0.0% 82.47% 5.76% N/A 5.99% 5.77%
Alabama 3.48% 50.8% 5.29% 34.56% 4.12% 1.74%
Georgia 0.34% 41.63% 4.18% 49.3% 4.48% 0.06%
Mississippi 0.33% 61.75% 7.16% 23.71% 5.62% 1.43%
South Carolina 0.1% 51.33% 5.04% 38.5% 4.43% 0.59%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

Current fiscal year budget

See also: Historic Florida budget and finance information

Fiscal year 2015

DocumentIcon.jpg See budget bill: HB 5003

Governor Rick Scott announced his fiscal year 2015 budget proposal on January 29, 2014. Under the governor's proposal, total state spending for fiscal year 2015 would have equaled approximately $74.2 billion, including $100 million in tax cuts for businesses and a $542 million increase in K-12 education expenditures.[10]

On June 2, 2014, Scott signed into law the fiscal year 2015 budget, which totaled approximately $77 billion. The enacted budget included $500 million in tax cuts and $20.7 billion in K-12 education spending. Scott vetoed roughly $68.9 million in spending.[10]

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Florida had a state debt of approximately $197.9 billion. Its state debt per capita was $10,243. The report revealed that state governments faced a combined $5.1 trillion in debt. The obligation amounted to $16,178 per capita in the nation.[11]

Total state debt, 2014
State Total state debt State debt per capita Per capita debt ranking
Florida $197,871,611,000 $10,243 43
Alabama $68,343,597,000 $14,173 26
Georgia $115,193,862,000 $11,612 39
Mississippi $54,686,815,000 $18,321 14
South Carolina $71,105,557,000 $15,053 23
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Public pensions

See also: Florida public pensions and Florida public employee salaries

A 2012 report from the Pew Center on the States noted that Florida's pension system was funded at 82 percent at the close of fiscal year 2010, above the 80 percent funding level experts recommend. Consequently, Pew designated the state's pension system as a "solid performer."[12]

The funding ratio for the state's pension systems decreased from 105.65 percent in fiscal year 2007 to 86.38 percent in fiscal year 2012, a drop of 19.27 percentage points, or 18.2 percent. Likewise, unfunded liabilities increased from approximately -$6.7 billion in fiscal year 2007 to more than $20 billion in fiscal year 2012.

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.[13][14]

The table below lists the Standard and Poor's credit ratings for Florida and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.[15]

State credit ratings, 2004 to 2014
State 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Florida AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AA+
Alabama AA AA AA AA AA AA AA AA AA AA AA
Georgia AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA
Mississippi AA AA AA AA AA AA AA AA AA AA AA
South Carolina AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AAA
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[16]

The table below notes what share of Florida’s general revenues came from the federal government in 2012. That year, Florida received approximately $22.9 billion in federal aid, 31.7 percent of the state's total general revenues. Figures from surrounding states are provided for additional context.[16]

Federal aid to state budgets, 2012
State Total federal aid ($ in thousands) Federal aid as a % of general revenue Ranking
Florida $22,850,620 31.7% 30
Alabama $8,112,509 36.5% 9
Georgia $13,794,726 37.92% 7
Mississippi $7,725,294 45.35% 1
South Carolina $6,892,660 32.41% 28
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

Stimulus

According to Recovery.gov, the official government website for the Recovery Accountability and Transparency Board, under the American Recovery and Reinvestment Act, Florida received $9.8 billion in federal stimulus funding between February 2009 and June 2013.[17] The state also received $1.3 billion from the federal government under H.R. 1586, a $26 billion plan to give states money for Medicaid and education that President Obama signed into law on August 10, 2010.[18]

Budget process

The state operates on an annual budget cycle.[19] The sequence of key events in the budget process is as follows:[20]

  1. In July of the year preceding the start of the new fiscal year, the governor sends budget instructions to state agencies.
  2. In October agencies submit their budget requests to the governor.
  3. Budget hearings are held with state agencies in September.
  4. Public hearings are held in both September and January.
  5. In February the governor submits his or her proposed budget to the state legislature.
  6. The legislature adopts a budget in April or May, effective for the fiscal year beginning in July. A simple majority is required to pass a budget.

The governor is constitutionally and statutorily required to submit a balanced budget to the legislature. In turn, the legislature must pass a balanced budget, and any budget signed into law by the governor must be balanced.[20]

Florida is one of 44 states in which the governor has line item veto authority.[20]

Florida budgets three major funds: the General fund, the Major Special Revenue Fund and the Special Revenue Fund. Both the Major Special Revenue Fund and the Special Revenue Fund are comprised of lesser funds. The Major Special Revenue Fund is composed of three lesser funds, and the Special Revenue Fund is composed of about 19 to 20 lesser funds.[21]

Agencies, offices and committees

The following standing committees in the Florida State Legislature deal with budget and finance matters:

  1. Appropriations Committee, Florida House of Representatives
  2. Appropriations Committee, Florida State Senate
  3. Finance & Tax Committee, Florida House of Representatives
  4. Finance and Tax Committee, Florida State Senate
  5. Fiscal Policy Committee, Florida State Senate
  6. Joint Legislative Budget Commission, Florida State Legislature

The Florida Chief Financial Officer performs the duties typical of state treasurers and controllers by providing accounting services, managing and performing audits of the state's finances, and overseeing payroll for state employees. The position is elected ever four years in midterm elections years and is a partisan office.

Studies and reports

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[22] According to the report, Florida received a grade of A- and a numerical score of 92.5, indicating that Florida was "leading" in terms of transparency regarding state spending.[22]

Budget and finance ballot measures

Voting on
state and local
government budgets,
spending and finance
State finance.jpg
Policy
Budget policy
Ballot measures
By state
By year
Not on ballot
See also: Spending and finance on the ballot and List of Florida ballot measures

Ballotpedia has tracked the following ballot measures relating to state and local budget and financial matters in Florida.

  1. Florida Bonds for State Capital Projects, Amendment 7 (1984)
  2. Florida Budget Accountability, Amendment 4 (1992)
  3. Florida Constitution Revision Commission Duties, Amendment 2 (1996)
  4. Florida County School Fund, Amendment 1 (1926)
  5. Florida Director of the Budget, Amendment 4 (1946)
  6. Florida Disbursement of State Funds, Amendment 2 (1984)
  7. Florida Education Capital Project Funds, Amendment 1 (1952)
  8. Florida Electric Utilities, Amendment 6 (1974)
  9. Florida Escambia County General Fund, Amendment 10 (1956)
  10. Florida Escambia County General Fund, Amendment 11 (1952)
  11. Florida Everglades Trust Fund, Amendment 6 (1996)
  12. Florida Federal Budget Advisory Question (2010)
  13. Florida Finance and Taxation, Amendment 7 (1978)
  14. Florida Legislative Appropriations, Amendment 5 (1946)
  15. Florida Limitation of State Revenue Collections, Amendment 2 (1994)
  16. Florida Local Governmental Expenditures, Amendment 3 (1990)
  17. Florida School Fund Principal Use, Amendment 4 (1964)
  18. Florida School Parity, Amendment 3 (1938)
  19. Florida State Board of Administration, Amendment 1 (1942)
  20. Florida State Planning and Budget Process, Amendment 1 (2006)
  21. Florida State Revenue Limitation, Amendment 3 (2012)
  22. Florida Taxation and Budget Reform Commission, Amendment 6 (1988)
  23. Florida Toll Road State Funds, Amendment 2 (1954)
  24. Florida Trial Costs, Amendment 1 (October 1894)

Recent news

This section displays the most recent stories in a Google news search for the terms "Florida budget."

Some of the stories below may not be relevant to this page due to the nature of Google's news search engine.

Florida state budget and finances - Google News Feed

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Contact

Florida Office of Budget and Policy
400 S Monroe St.
Tallahassee, FL 32399
850-487-1880

See also

External links

Additional reading

References

  1. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  2. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  3. 3.0 3.1 3.2 3.3 3.4 3.5 3.6 National Association of State Budget Officers, "State Expenditure Report: 2012-2014," accessed February 18, 2015
  4. United States Census Bureau, "State and County QuickFacts," accessed February 23, 2014
  5. National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  6. National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  7. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  8. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  9. 9.0 9.1 Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
  10. 10.0 10.1 National Association of State Budget Officers, "Summaries of Fiscal Year 2015 Proposed and Enacted Budgets," July 11, 2014
  11. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  12. Pew Center on the States "The Widening Gap Update: Florida," June 18, 2012
  13. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  14. Bankrate, "The 6 states with the worst credit ratings," September 27, 2012
  15. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014
  16. 16.0 16.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  17. Recovery, "Stimulus Spending by State"
  18. Federal Fund Information for States “ARRA FMAP Extension & Education Jobs Fund Totals” Aug. 11, 2010
  19. National Conference of State Legislatures "State Experiences with Annual and Biennial Budgeting," updated April 2011
  20. 20.0 20.1 20.2 National Association of State Budget Officers "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  21. State Budget Solutions, "Florida: Background," accessed April 15, 2014
  22. 22.0 22.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014