Difference between revisions of "Florida state budget"

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===Stimulus===
 
===Stimulus===
Florida has received $9.8 billion in federal stimulus funding between February 2009 and June 2013.<ref>[http://www.recovery.gov/Pages/default.aspx ''Recovery'', "Stimulus Spending by State"]</ref> The state also received $1.3 billion from the federal government under [http://thomas.loc.gov/cgi-bin/query/D?c111:7:./temp/~c11109gS64:: 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.<ref>[http://www.ffis.org/ Federal Fund Information for States “ARRA FMAP Extension & Education Jobs Fund Totals” Aug. 11, 2010]</ref>
+
Florida received $9.8 billion in federal stimulus funding between February 2009 and June 2013.<ref>[http://www.recovery.gov/Pages/default.aspx ''Recovery'', "Stimulus Spending by State"]</ref> The state also received $1.3 billion from the federal government under [http://thomas.loc.gov/cgi-bin/query/D?c111:7:./temp/~c11109gS64:: 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.<ref>[http://www.ffis.org/ Federal Fund Information for States “ARRA FMAP Extension & Education Jobs Fund Totals” Aug. 11, 2010]</ref>
  
 
==Budget transparency==
 
==Budget transparency==

Revision as of 11:16, 21 April 2014

Florida state budget

Flag of Florida.png
Budget calendar:  Annual
Fiscal year:  2014
State credit rating:  AAA (as of May 2012)
Current governor:  Rick Scott
Financial figures
GF expenses[1]:  $24.7 billion
All funds expenses:  $70 billion (estimated for FY 2013)
Spending % change:  Green Arrow Up Darker.svg9.98%[2]
% from federal funding:  32.08%
State debt:  $197,871,611,000
Per capita state debt:  $10,243
Other state budgets
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Policypedia Budget Policy-logo-no background.png
This page contains information about budget processes and policy issues in Florida, including:
  • A summary of the budget drafting process
  • Trends in expenditures and revenues
  • Current and past fiscal year budget developments
  • Financial transparency measures

Between fiscal year 2009 and fiscal year 2013, Florida's total expenditures increased by approximately $7.9 billion, from $62.1 billion in 2009 to nearly $70 billion in 2013. This represents an 11.3 percent increase, outpacing the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).[3][4]

Budget process

The state operates on an annual budget cycle.[5] The sequence of key events in the budget process is as follows:[6]

  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.[6]

Florida is one of 44 states in which the governor has line item veto authority.[6]

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 comprised of three lesser funds, and the Special Revenue Fund is comprised of about 19 to 20 lesser funds.[7]

Expenditures

Definitions

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:[8]

  • General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."[8]
  • Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."[8]
  • Federal funds: "Funds received directly from the federal government."[8]
  • Bonds: "Expenditures from the sale of bonds, generally for capital projects."[8]

2013 expenditures

Breakdown of expenditures in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).[8] Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)[8]
State General fund Federal funds Other funds Bonds Total Per capita expenditures**
Florida $24,717 $24,737 $18,437 $2,084 $69,975 $3,578.76
Alabama $6,897 $9,541 $7,490 $189 $24,117 $4,989.32
Georgia $18,303 $11,752 $10,211 $808 $41,074 $4,110.62
Mississippi $4,699 $8,274 $5,660 $784 $19,417 $6,491.36
South Carolina $6,350 $7,792 $8,158 $0 $22,300 $4,670.31
**Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.[9][10]
Source: National Association of State Budget Officers

Expenditures by function

Breakdown of expenditures by function in FY 2012.
Source: National Association of State Budget Officers

State expenditures in Florida can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percents)[8]
State Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
Florida 18.8% 7.1% 0.3% 30.6% 4.2% 11% 28.1%
Alabama 20.9% 20.1% 0.2% 23.3% 2.5% 6.1% 27%
Georgia 24.0% 18.7% 0.1% 21.5% 3.7% 5.2% 26.8%
Mississippi 16.9% 16.8% 5.8% 23.4% 1.8% 7.5% 27.7%
South Carolina 15.9% 21.0% 0.4% 21.7% 2.7% 6.6% 31.7%
Source: National Association of State Budget Officers

Expenditure trends

The largest shift in expenditure trends was a 7.4 percent increase in Medicaid expenditures. During the same period, education expenditures for both elementary and secondary education as well as higher education fell by 1.8 percent and 2.8 percent respectively. The table below details changes in expenditures from 2008 to 2012.[8][11][12][13][14] Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percents)
Year Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
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%
2008 20.2% 9.9% 0.2% 23.2% 4.8% 10.7% 31%
Change in % -1.4% -2.8% 0.1% 7.4% -0.6% 0.3% -2.9%
Source: National Association of State Budget Officers

Revenues

2013 revenues

Breakdown of general fund revenue sources in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).[8] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)[8]
State Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
Florida $18,302 $0 $2,233 $242 $4,244 $25,021 $1,279.66
Alabama $1,945 $3,104 $376 $2 $1,887 $7,314 $1,513.12
Georgia $5,226 $8,486 $706 $0 $3,562 $17,980 $1,799.41
Mississippi $1,887 $1,480 $463 $145 $763 $4,738 $1,583.98
South Carolina $2,448 $2,796 $265 $0 $742 $6,251 $1,309.15
**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.[9]
Source: National Association of State Budget Officers

Revenue trends

The table below details the change in revenue sources in the general fund from 2009 to 2013.[8][11] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, Florida ($ in millions)[8][11]
Year Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
2013 $18,302 $0 $2,233 $242 $4,244 $25,021 $1,279.66
2012 $17,422 $0 $2,011 $171 $4,015 $23,619 $1,222.47
2011 $16,638 $0 $1,875 $171 $3,868 $22,552 $1,181.75
2010 $16,015 $0 $1,790 $315 $3,403 $21,523 $1,142.04
2009 $16,531 $0 $1,833 $20 $2,641 $21,026 $1,134.21
Change in % 9.7% N/A 17.9% 91.7% 37.8% 16% 11.4%
**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.[9][10]
Source: National Association of State Budget Officers

State budgets by year

Fiscal year 2014

DocumentIcon.jpg See budget bill: SB 1500

Florida state budget -- 2014
Florida State Legislature
Text:SB 1500
Legislative history
Introduced:April 4, 2013
House:April 12, 2013
Vote (lower house):99-17
Senate:May 3, 2014
Vote (upper house):40-0
Governor:Rick Scott
Signed:May 20, 2013

On Jan. 31, 2013, Governor Rick Scott introduced his proposed FY2014 state budget of $74.2 billion, an increase of $4 billion from the prior year.[15] This was the first time in six years that the governor proposed adding funds to state programs. The budget asked for a pay raise for teachers and state workers, an increase in funding for universities and accepted federal funds to support the Affordable Care Act.[16]

Senate Bill 1500 was unanimously passed by the Florida State Senate on May 3, 2013 after the Florida House of Representatives passed it the same day. The bill increased school funding by $1.2 billion, which included $480 million in salary increases for instructional personnel based on performance.[17] Gov. Scott signed it into law on May 20, 2013 after vetoing specific line items.[18]

Fiscal year 2013

See also: Florida state budget (2012-2013)

Fiscal year 2012

See also: Florida state budget (2011-2012)

Fiscal year 2011

See also: Florida state budget (2010-2011)

Fiscal year 2010

See also: Florida state budget (2009-2010)

Historical spending

State budget historical spending below was compiled by the National Association for State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).[8][12]

Historical state budget spending in Florida ($ in millions)
Fiscal year General Fund Other funds Federal funds Bonds Budget totals
Total % of Budget Total % of Budget Total % of Budget Total % of Budget
2011-2012 $23,053 36.6% $12,928 20.5% $24,615 39.1% $2,393 3.8% $62,989
2010-2011 $23,777 36.3% $9,481 14.5% $29,403 44.9% $2,800 4.3% $65,461
2009-2010 $21,216 34.2% $10,612 17.1% $28,958 46.7% $1,264 2% $62,050
Averages: $22,682 36% $11,007 17% $27,658.67 44% $2,152.333 3% $63,500
General Fund: The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state.
Other funds: Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds.
Federal funds: Funds received directly from the federal government.
Bonds: Expenditures from the sale of bonds, generally for capital projects.

State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Florida had a state debt of nearly $198 billion. Its state debt per capita was $10,243. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded public pensions.[19][20]

Total state debt in Florida[21]
Type Totals U.S. rank
Total state debt $197,871,611,000 7
Per capita debt $10,243 43
State and other fund expenditures $35,981,000,000 11

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."[22]

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 19.27 percent drop. Likewise, unfunded liabilities increased from approximately -$6.7 billion in fiscal year 2007 to more than $20 billion in fiscal year 2012.

Credit ratings

States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit ranking indicates lower risk for an investor, which in turn lowers costs for taxpayers.[23]

The table below lists the Standard and Poor's credit ranking for Florida from 2001 to 2012 (grades from surrounding states are provided for additional context).[23]

S&P credit ratings from 2001 to 2012
Florida Alabama Georgia Mississippi South Carolina
2012 AAA AA AAA AA AA+
2011 AAA AA AAA AA AA+
2010 AAA AA AAA AA AA+
2009 AAA AA AAA AA AA+
2008 AAA AA AAA AA AA+
2007 AAA AA AAA AA AA+
2006 AAA AA AAA AA AA+
2005 AAA AA AAA AA AA+
2004 AA+ AA AAA AA AAA
2003 AA+ AA AAA AA AAA
2002 AA+ AA AAA AA AAA
2001 AA+ AA AAA AA AAA

Federal aid to state budget

See also: Federal aid to budgets in the 50 states

The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.[24]

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.[24]

Federal aid to state budgets in 2012
State Federal aid as % of general revenue Total federal aid ($ in millions) National rank
Florida 32.08% $22,851 30
Alabama 36.50% $8,113 11
Georgia 38.06% $13,795 7
Mississippi 45.35% $7,725 1
South Carolina 32.45% $6,893 29

Stimulus

Florida received $9.8 billion in federal stimulus funding between February 2009 and June 2013.[25] 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.[26]

Budget transparency

Transparency evaluation
Transparency Florida Florida Has a Right to Know
Searchability Y
600px-Yes check.png
Y
600px-Yes check.png
Grants N
600px-Red x.png
N
600px-Red x.png
Contracts Y
600px-Yes check.png
P
Partial.png
Line item expenditures N
600px-Red x.png
N
600px-Red x.png
Dept./agency budgets Y
600px-Yes check.png
N
600px-Red x.png
Public employee salaries N
600px-Red x.png
Y
600px-Yes check.png
Last evaluated in 2013.
See also: Evaluation of Florida state website and Constitutional provisions regarding reading of bills

Certain public agencies have failed to comply with open records laws.[27]

Florida currently has some level of transparency, including "Transparency Florida," an online spending database created by the state's Chief Financial Officer.[28]

Budget review period

Article 3, Section 19(c) of the Florida State Constitution requires that "All general appropriation bills shall be furnished to each member of the legislature, each member of the cabinet, the governor, and the chief justice of the supreme court at least seventy-two hours before final passage by either house of the legislature of the bill in the form that will be presented to the governor."[29]

Government tools

The table to the right is helpful in evaluating the level of transparency provided by Transparency Florida and Florida Has a Right to Know.

  • Transparency Florida is searchable, and is easy to navigate.[30]
  • Contracts are available through a search.[31]
  • There is a vendor search, but you must search specific vendors.[32]
  • Department and agency budgets are available.[33]
  • Public employee salaries are not available.

Limitations and Suggestions

Florida's Checkbook should post employee salaries just as other state transparency sites (such as the Missouri Accountability Portal) do.

Multi-measure budget transparency profile

The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for Florida, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.[34][35]

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Florida tied for eighth in the nation with 12 other states, earning six out of eight possible points.[35]

Florida - IGPA score for budget process, contents and disclosure
Budget transparency indicator Yes or no?
Performance measures
{{{1}}}
"Generally Accepted Accounting Principles" budget N
600px-Red x.png
Multi-year forecasting
{{{1}}}
Annual cycle
{{{1}}}
Binding revenue forecast
{{{1}}}
Legislative revenue forecast
{{{1}}}
Non-partisan staff N
600px-Red x.png
Constitution or statutory tax/spend limitations
{{{1}}}
(Constitution)
TOTAL 6

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.[35]

Accounting principles

See also: Florida government accounting principles

David W. Martin is the Florida Auditor General. the Auditor General is a constitutional officer appointed by the Joint Legislative Auditing Committee.[36]. His appointment is confirmed by both houses of the Florida State Legislature. The departments are available online.[37]

Credit Rating Fitch Moody's S&P
Florida[38] AA+ Aa1 AAA

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. Refers to General Fund spending. Typically in state budgets the General Fund is spending that is most directly controlled by state legislators.
  2. This figure is derived by calculating the percent difference between the prior two years' spending levels according to the National Association of State Budget Officers.
  3. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  4. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  5. National Conference of State Legislatures "State Experiences with Annual and Biennial Budgeting," updated April 2011
  6. 6.0 6.1 6.2 National Association of State Budget Officers "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  7. State Budget Solutions, "Florida: Background," accessed April 15, 2014
  8. 8.00 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 8.09 8.10 8.11 8.12 8.13 National Association of State Budget Officers "State Expenditure Report, 2011-2013," accessed February 21, 2014
  9. 9.0 9.1 9.2 United States Census Bureau "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014
  10. 10.0 10.1 United States Census Bureau "Vintage 2009: Annual Population Estimates," accessed February 26, 2014
  11. 11.0 11.1 11.2 National Association of State Budget Officers "State Expenditure Report, 2009-2011," accessed February 24, 2014
  12. 12.0 12.1 National Association of State Budget Officers "State Expenditures Report, 2010-2012," accessed February 24, 2014
  13. National Association of State Budget Officers "State Expenditure Report, 2009," accessed February 24, 2014
  14. National Association of State Budget Officers "State Expenditure Report, 2008," accessed February 24, 2014
  15. Reuters "Florida governor seeks higher school aid, business tax cuts" Jan. 31, 2013
  16. State Scoop, "Analysis: Florida's FY 2014 budget," May 29, 2013
  17. Florida Senate, "Press Release: Senate Unanimously Passes 2013-2014 State Budget," May 2, 2013
  18. Florida Senate, "SB 1500: Appropriations," accessed April 16, 2014
  19. State Budget Solutions "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  20. Washington Examiner "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014
  21. State Budget Solutions "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  22. Pew Center on the States "The Widening Gap Update: Florida," June 18, 2012
  23. 23.0 23.1 Stateline: The Daily News Service of The Pew Charitable Trusts "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  24. 24.0 24.1 United States Census Bureau "State Government Finances: 2012," accessed February 24, 2014
  25. Recovery, "Stimulus Spending by State"
  26. Federal Fund Information for States “ARRA FMAP Extension & Education Jobs Fund Totals” Aug. 11, 2010
  27. Sun Sentinel, "Many Florida public agencies flunk simple open records test," November 28, 2008
  28. "Transparency Florida," accessed August 14, 2013
  29. Article 3, Section 19(c), Accessed August 14, 2013
  30. Florida's Checkbook
  31. Contract Search
  32. Vendor Payment Search
  33. Florida Financials
  34. Institute of Government and Public Affairs at University of Illinois "Home page," accessed February 21, 2014
  35. 35.0 35.1 35.2 Institute of Government and Public Affairs at University of Illinois "Budget Transparency Profiles - All 50 States," September 2011
  36. Joint Legislative Auditing Committee
  37. Florida Auditor General Web site, retrieved October 14, 2009
  38. California State Treasurer, “Comparison of Other States’ General Obligation Bond Ratings”