By: Gillian Nanton
The first annual report put out by The Florida Center for Fiscal and Economic Policy, entitled “Troubling Trends Threaten Florida’s Well Being“, paints a rather disturbing picture of the state. The Report discerns many negative trends that threaten the well-being of the sunshine state and its people.
Among the major findings of the Report are:
* Florida’s rate of growth in income per person has fallen to 45th in the country
* The percentage of residents of Florida living in poverty has increased. About 180,000 more Floridians were living in poverty in 2007 than 2006.
* The gap between the wealthiest and the poorest in Florida is widening and the gap between the richest fifth of Floridians and the middle fifth is even more dramatic.
* The rate of growth in Florida’s gross state product– the value of goods and services produces–has slowed over the past 3 years to where it ranks 47th in the nation.
* Florida’s unemployment is one of the highest in the country and exceeds 10 %.
* Almost half of the State’s jobs are compensated at less than 150 % of the federal poverty level, indicating the difficulty workers face in supporting themselves and their families.
* Per capital state government spending in Florida is less than the national average and ranks 44th in the country.
* Florida spends a smaller share of its budget on elementary and secondary education and higher education education than most states and spends a greater share on correction than all but two.
The Report notes that the traditional drivers of economic growth in Florida have weakened and in some cases there is no prospect for change in the near future. For example, it argues that population growth is not expected to match the historic post-World War II rate, hence providing less demand for new housing and other construction demand that spurs economic activity.
The Review concludes that major changes are needed if Florida is to stem and reverse the current trends.
It recommends that, spending be directed to the most important priorities of the state, such as investment in education that will strengthen the capacity of Florida’s residents to function and prosper in a different kind of economy and one with higher paid jobs.
Also recommended is the adoption of a balanced approach to both the revenue and expenditure sides of the Florida State Budget. In particular, it calls for the elimination of inefficiencies and duplication in government and the modernization of Florida’s tax structure, making it fairer and better able to produce revenues adequate to fund quality services.
See Full Text of Report “Troubling Trends Threaten Florida’s Well Being”, HERE
