State Budget
Tax Policy
Tax Code
tax code spending
corporate tax
2024 Legislation
disaster recovery
economy
By
Esteban Leonardo Santis, PhD
|
August 9, 2024

Florida FY 2024-25 Budget Summary: Introduction and Revenue Overview

The state budget for fiscal year (FY) 2024-25 totals $116.5 billion after accounting for $949.6 million in vetoes, a decrease of over $2 million compared to prior-year funding. Concerning funding sources, the budget incorporates $48.6 billion in General Revenue Fund dollars, $30 billion from state trust funds, and $37.9 billion in federal funds.

While the General Appropriations Act (GAA) includes lump-sum budget appropriations, policymakers often include additional appropriations in the “back-of-the-bill” sections, which are not included in the GAA total. Policymakers can also make “supplemental appropriations” through bills other than the GAA. For example, the FY 2023-2024 budget[1] totaled $116.5 billion after accounting for vetoes;[2] however, this amount did not include back-of-the-bill sections (worth $676 million) nor bills with supplemental appropriations ($1.4 billion),[3] like the Live Local Act. Demonstratively, when policymakers signed the Live Local Act as a standalone bill in 2023, they authorized a $711 million appropriation as a supplement to those made in the GAA.[4] Although the use of back-of-the-bill and supplemental appropriations has been common over the last 10 fiscal years, on average, these expenditures represent less than 1 percent of the total appropriations (GAA, back of the bill, supplemental appropriations, and other adjustments combined).[5]

Analysis of the State’s Operating Budget

The Great Recession and Stagnant Recovery

The state’s operating budget does not discriminate between different funding and spending categories —– it combines funding and adjustments across all categories to offer a more holistic overview of government investment when compared to the GAA for a standalone fiscal year. The operating budget in Florida, like in many states, has mostly seen incremental changes over several years, with notable exceptions. Following the Great Recession (beginning with the last quarter of 2007 and ending the third quarter of 2009),[6] the state budget stagnated until it dropped between FY 2010-11 and FY 2011-12, followed by a smaller decrease the next fiscal year. (See Figure 1.) As the July 2012 Economic Estimating Conference explained, the Great Recession triggered extreme financial and economic stress statewide, leading to sharp declines in state gross domestic product, personal income growth, and employment.[7]

Thus, the drop in Florida’s operating budget between FY 2010-11 and FY 2011-12 points to a period of sluggish recovery, ongoing financial difficulties, and budget cuts. Since then, from FY 2008-09 to FY 2019-20, the state’s operating budget gradually increased: during this period, the budget had an average annual growth rate of approximately 2 percent.[8] Figure 1 shows this trend and offers insight across Florida’s six primary service areas.

 

 

On the one hand, the operating budget’s incremental changes during the FY 2008-09 to FY 2019-20 period signal stability following the Great Recession. On the other hand, however, the incremental changes highlight stagnant investment in public services. For example, in its analysis of public expenditures, the Urban-Brookings Tax Policy Center finds that Florida invested $7,421 in public services, per capita, in 2009 —- at the time, only 30 other states and D.C. invested more. In 2020, the state’s per capita investment in public services increased to $8,351, yet trailed behind 44 other states and D.C., which all invested more.[9] Moreover, based on findings from Prosperity Now’s 2019 scorecard,[10] United Way’s ALICE research,[11] and the Institute on Taxation and Economic Policy’s 2024 “Who Pays” report,[12] it is clear that policymakers’ incremental budget decisions have left many Floridians without the public services necessary to thrive. 

As Figure 1 shows, beyond the FY 2008-09 to FY 2019-20 period of incremental growth, between FY 2020-21 and FY 2023-24, the state’s operating budget skyrocketed, eclipsing previous growth. This period aligns with the onset of the COVID-19 pandemic and the federal response, which dramatically boosted state revenue.

COVID-19 and Operating Budget Highs

When COVID-19 began to rapidly spread across the United States in March 2020, the economy quickly shed more than 20 million jobs. In Florida, the unemployment rate had been below 4 percent from January 2018 through February 2020. With the onset of the pandemic, unemployment spiked to 14.1 percent of the labor force, far surpassing the prior peak rate of 10.9 percent experienced in the first four months of 2010 during the Great Recession.[13] To put the spike into perspective, in January 2020, a total of 318,000 Floridians were unemployed; by May 2020, a total of 1.43 million people were without employment.[14]

In the face of uncertainty and adversity, federal policymakers took decisive action. Between 2020 and 2022, they passed several relief bills, including:

  • Six COVID-19 relief laws enacted in 2020 and 2021, which provided about $4.6 trillion of funding for pandemic response and recovery.[15]‍
  • The Infrastructure Investment and Jobs Act (IIJA) of 2021, which included $1.2 trillion in funding for roads, bridges, transit, broadband, clean energy, water infrastructure, and other projects, to be awarded by federal agencies to state and local governments;[16]‍
  • The Inflation Reduction Act (IRA) of 2022, which authorized $369 billion in incentives and tax credits for consumers, manufacturers, governments, and nonprofits to invest in clean energy infrastructure.[17]

The actions taken in response to the COVID-19 recession made it the shortest on record and invigorated an economic rebound that significantly reduced the unemployment rate. For example, thanks to the Coronavirus Aid, Relief, and Economic Security Act; the Coronavirus Response and Relief Supplemental Appropriations Act; and the American Rescue Plan Act, over 8 million Floridians received $44.5 billion and over 2.1 million families received $11.1 billion in Economic Impact Payments. In total, Floridians received $55.6 billion between 2020 and 2021.[18] Per the U.S. Census Bureau’s 2021 and 2022 Survey of Income and Program Participation, when asked how they mostly used their payments, 44 percent of recipients in Florida reported using the stimulus to pay off debt, 34 percent spent it, 20 percent saved it, and the rest gave it away to charity or someone in need.[19]

As testament to the impact of federal intervention, the Florida Legislature’s 2021 Long-Range Financial Outlook affirms that “in the first quarter of 2021 … Florida’s personal income growth [a gauge of the state’s economic health] shot up … largely due to … federal stimulus and relief programs.”[20] The legislative report also clarifies that as sales tax collections exceeded forecasts, “much of [the] gain was attributable to the … rounds of federal stimulus checks to households, redirected spending from the hard-hit service sector, and some consumers’ ability to draw down atypically large savings built up during the pandemic.”[21]

Furthermore, as Figure 2 shows, state trust fund revenue from federal grants reached a 10-year high in FY 2020-21 as the federal government increased support for Florida’s Department of Commerce (mainly federal transfers to the Unemployment Compensation Benefit Trust Fund), the Agency for Health Care Administration (the bulk of U.S. grants went to the Medical Care Trust Fund, specifically for Medicaid), and the Department of Education. Conclusively, the influx of federal dollars not only helped support families and workers —- it also helped policymakers avoid budget cuts.

 

  

Without a doubt, the operating budget spikes that occurred between FY 2020-21 and FY 2023-24 were directly affected by federal interventions in response to COVID-19. As the impact of federal assistance dissipates, policymakers should acknowledge that the unique conditions that have boosted Florida’s trust funds, sales tax collections, and, by extension, historic reserves, are unlikely to repeat. Assuming the absence of new federal intergovernmental transfers and current revenue projections,[22] the drop between FY 2023-24 and FY 2024-25 (Figure 1) could signal a new post-pandemic period of stagnant investment in public services.

Considerations for the Future

In the United States, aggregate household debt increased by $184 billion in the first quarter of 2024, a 1.1 percent increase from the previous quarter. Since the end of 2019, just before the pandemic recession, debt balances have increased by $3.5 trillion. According to the Federal Reserve Bank of New York, household debt is mostly mortgage balances ($12.44 trillion), followed by auto loans ($1.62 trillion), student loans ($1.60 trillion), credit cards ($1.12 trillion), and other types of debt ($0.92 trillion). For all debt outside of student loans, delinquency has been steadily rising since the fourth quarter of 2021 and credit card delinquencies are now past pre-pandemic levels.[23] 

In Florida, total per capita debt balance has increased to an all-time high of $60,590, just below the national per capita amount of $61,874; in contrast, at the end of 2019, per capita debt balance was $47,440 in Florida and $52,200 nationally.[24] While the vast majority of debt is current, about 4.3 percent (or 2,600 per capita) is late or delinquent.[25] This is all an indicator of ongoing consumer borrowing and, for some, difficulty paying off debt. As debt continues to increase, Florida’s Office of Economic and Demographic Research (EDR) also notes that the state’s personal savings rate continues to be subpar. As EDR postulates: “the savings and credit changes are likely related to the cumulative effects on inflation, which still remain elevated.”[26] These conditions could ultimately affect general sales tax collections, which account for 80 percent of the state’s tax collections and are overwhelmingly paid for by Florida households.[27]

Finally, state leaders’ conversations about the operating budget, trust fund balances, and per capita general revenue spending do not consider the forgone revenue from tax expenditures. “Silent spending,” FPI’s term for the numerous types of tax expenditures in Florida’s tax code, continues to drain billions of dollars in potential state revenue each year. Total tax expenditures will cost Floridians an estimated $25.7 billion in FY 2024-25.[28]. While spending through the state budget takes the form of collecting revenue and appropriating these dollars to be expended, spending through the tax code takes the form of revenue the state forfeits. In either case, the result is the same: public resources are designated, and spent, for a specific purpose.

Florida Does Not Have a Diversified Revenue Base, Which Exacerbates an Inequitable Tax Structure

As the state’s population continues to increase, change, and age, so will public service demands. Since the early 2000s, Florida’s population has grown by 35 percent, from 16 million in 2000 to 21.5 million in 2020, and it is much more diverse.[29] Additionally, Florida is third in the country (slightly behind Maine and Vermont) in the percent of its population 65 years of age or older, with 21.6 percent of Floridians falling into this group.[30] By 2030, the Florida Demographic Estimating Conference anticipates that nearly 25 percent of Floridians will be aged 65 or older.[31] This has implications for the relative size of the labor pool, the need for health care services, the modes of service delivery, and overall tax revenue. 

Yet, despite significant ongoing demographic changes, Florida has set a trend of collecting and spending less general revenue, via taxes, than most other states, including neighboring states in the Southeast, on a per capita basis. According to the U.S. Census Bureau’s 2021 Annual Survey of State and Local Government Finances, the Sunshine State collects roughly $2,761 per capita — nearly all other states in the country, except for Alaska and Texas, generate more revenue for public services per capita.[32] There are several reasons why Florida trails the country in per capita tax collections:

  • Only local governments (e.g., counties, municipalities, and/or school districts), as opposed to the state, can levy property taxes. 
  • Since 1924, the state cannot levy personal income taxes.[33]‍
  • In 1984, policymakers made it easier for multistate and multinational corporations to avoid paying corporate income taxes by repealing unitary combined reporting.
  • In 2006, policymakers repealed the annual tax on intangible personal property (i.e., stocks, bonds, notes, etc.) and, in doing so, made it harder to tax wealth.[34]

Instead, the state relies heavily on its general sales tax to balance its budget. As Figure 3 shows, Florida collects about $1,673 per capita through its general sales tax; this is approximately $359 more than the U.S. average and between $204 and $720 more than the average in the South.[35]

  

Across the nation, Florida and Texas are the most dependent on general sales taxes, with the tax accounting for roughly 61 and 62 percent of their revenue, respectively. Once you factor in excise taxes (i.e., taxes on motor fuel, alcoholic beverages, tobacco), taxes on consumption, overall, account for about 80 percent of Florida’s tax revenue. Conclusively, Florida does not tap into the same revenue streams available to other states and its inability to do so limits the quality of education, health and human services, corrections, natural resource management, growth management, transportation projects, and general government operations. 

The state’s dependence on sales taxes also perpetuates a tax system in which wealthy households pay a far lesser share of their income to taxes than families with low and middle incomes. According to the Institute on Taxation and Economic Policy, the bottom 20 percent of Florida taxpayers, as measured by income, bear an effective state and local tax rate that is nearly five times that of the top 1 percent of households. In fact, Florida is one of 41 states that tax the top 1 percent less than every other income group, and one of 34 states that tax residents with the lowest income at a higher rate than any other group.[36] Nationally, tax systems in 44 states exacerbate inequality by making incomes more unequal after collecting state and local taxes. Florida’s tax system stands out as the most upside-down in the country.

Looking Ahead: How is the FY 2024-25 Budget Funded?

For Fiscal Year (FY) 2024-25, Gov. Ron DeSantis vetoed a total of $949.6 million, an 86 percent increase over last fiscal year’s vetoes ($511 million). The governor's vetoes are available for consideration, by the Legislature, until the end of the 2025 regular session. The Legislature can override or set aside the governor’s vetoes if two-thirds of the members of each chamber vote to do so.

The FY 2024-25 budget, after vetoes, amounts to $116.5 billion and represents a less than 0.001 percent decrease over the previous year’s budget. Concerning funding sources, the budget incorporates $48.6 billion in General Revenue Fund dollars, $30 billion in state trust funds, and $37.9 billion in federal funds. (See Table 1.)[37] 

 

As Table 1 shows, legislators have access to the General Revenue Fund and various state and federal trust funds to pay for the budget. General revenue comprises undesignated revenue from tax collections and accounts for 42 percent of the budget. Additionally, 33 percent of the budget relies on federal dollars, and the other 26 percent is earmarked for specific state trust funds (e.g., lottery revenue goes to education).

About Increased Revenue Collections and Rainy Day Funds

As mentioned earlier, between FY 2020-21 and FY 2023-24, revenue collections — fueled by the economy recovering after the pandemic and boosted by major federal relief efforts — have been strong. At the same time, policymakers have been able to grow state reserves. Now that COVID-era federal assistance has come to an end, followed by a possible period of stagnant growth, policymakers must consider strategies to use the reserves as downpayments for better quality public services and programs, which can subsequently be financed through new, more equitable taxes.

After passage of the FY 2024-25 budget, state reserves are roughly $17 billion, $7.8 billion of which is unallocated general revenue. Policymakers can use these dollars when recessions or other unexpected events cause revenue to fall or spending to rise. Furthermore, ample reserves can help reduce economic harm during crises.[38] In Florida, policymakers keep the following reserves:[39] 

  • ‍$9.9 billion in unallocated general revenue and trust fund dollars. Unallocated general revenue consists of $7.8 billion in surplus dollars, with some needed to meet budget appropriations and adjustments throughout the fiscal year.[40] State trust funds have a surplus of $2.1 billion.
  • $4.4 billion in the Budget Stabilization Fund. Policymakers can only use these dollars to offset a declared deficit or provide funding for an emergency. Consequently, policymakers have limited access to this fund.
  • $2.2 billion in Reinsurance Assistance and Florida Optional Reinsurance Assistance Programs. In 2022, the Florida Legislature held two special sessions to address property insurance. In May that year, policymakers passed Senate Bill 2-D, which created the Reinsurance to Assist Policyholders Program. The program offers insurance at affordable rates to insurers in the event they are unable to cover losses following a mass catastrophe, with the requirement that they offer rate decreases to policyholders. Then, during a special session in December, policymakers passed SB 2-A, which created the Florida Optional Reinsurance Assistance Program to offer insurance companies different layers of reinsurance coverage from the state.
  • ‍$500 million in the Emergency Preparedness and Response Fund. Policymakers created this fund in 2022 within the executive office of the governor. Money specifically appropriated to the fund is available as a primary funding source for the governor to prepare or respond to a disaster (declared by the governor as a state of emergency) that exceeds regularly appropriated funding sources.

What Comes Next in the Budget Process? 

The FY 2024-25 budget took effect on July 1, 2024. To reverse any of the governor’s line-item vetoes, the House and Senate would have to reach a two-thirds majority vote in the upcoming (2025) session.

Ahead of the 2025 regular legislative session, the Legislature will have to summarize the fiscal and budgetary information pertinent to FY 2024-25. The Legislature’s “Fiscal Analysis in Brief” will include graphical depictions and detailed listings of appropriations, fund sources, non-recurring issues, vetoed items, financial outlooks, and legislation affecting revenue. Similarly, by September 15, 2025, the Legislative Budget Commission is required to issue a “Long-Range Financial Outlook (Three-Year Plan)” detailing fiscal strategies for the state and its departments to assist the Legislature in making budget decisions for the upcoming session.

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Notes

[1] Florida Policy Institute includes appropriations plus vetoes in the funding amounts cited for fiscal year budgets (the current year and previous fiscal year budgets). Except for Figure 1, FPI does not include adjustments and supplemental funding in calculations of funding levels.

[2] Florida Policy Institute, “Florida FY 2023-24 Budget: Summary by Issue Area,” Florida Policy Institute, August 9, 2023, https://www.floridapolicy.org/posts/florida-fy-2023-24-budget-summary-by-issue-area.

[3] The Florida Legislature, “Fiscal Analysis in Brief: 2023 Legislative Session: General Appropriations Act, Chapter 2023-239, Laws of Florida, Adjusted for Vetoes and Supplementals,” Office of Economic & Demographic Research (EDR), August 2023, page 7, http://edr.state.fl.us/Content/revenues/reports/fiscal-analysis-in-brief/index.cfm.

[4] Appropriations Committee Staff, “Bill Analysis and Fiscal Impact Statement: CS/SB 102,” Florida Senate, February 24, 2023, https://www.flsenate.gov/Session/Bill/2023/102/Analyses/2023s00102.ap.PDF.

[5] FPI analysis of the Florida Legislature’s Fiscal Analyses in Brief for Fiscal Years 2013-14 through 2023-24. See http://edr.state.fl.us/Content/revenues/reports/fiscal-analysis-in-brief/index.cfm for individual reports.

[6] “Dates of U.S. Recessions as Inferred by GDP-based Recession Indicator,” Federal Reserve Bank of St. Louis, April 27, 2023, https://fred.stlouisfed.org/series/JHDUSRGDPBR.  

[7] Florida Economic Estimating Conference, Florida Economic Archives, “Florida Economic Outlook,” Office of Economic & Demographic Research, July 2012, http://edr.state.fl.us/Content/conferences/fleconomic/archives/120723fleconomic.pdf.

[8] The growth rate reflects the average FY-to-FY change between 2009 and 2020.

[9] Urban-Brookings Tax Policy Center, “State and Local Direct General Expenditures, Per Capita,” Tax Policy Center, July 10, 2023, https://www.taxpolicycenter.org/statistics/state-and-local-direct-general-expenditures-capita.

[10] Prosperity Now, “State Outcome & Policy Report: Florida,” Prosperity Now Scorecard, January 2019, https://scorecard.prosperitynow.org/additional-reports.

[11] United For Alice, “Research Center: Florida,” n.d., https://unitedforalice.org/state-overview/Florida.

[12] Carl Davis et al., “Who Pays? A Distributional Analysis of the Tax Systems in All 50 States,” Institute on Taxation and Economic Policy (ITEP), January 2024, https://itep.org/whopays-7th-edition/.

[13] Florida Economic Estimating Conference, “Executive Summary,” Office of Economic & Demographic Research (EDR), December 19, 2023, page 2,  http://edr.state.fl.us/Content/conferences/fleconomic/floridaeconomicsummary.pdf.

[14] “Local Area Unemployment Statistics,” Florida Department of Commerce, Accessed July 22, 2024,,  https://floridajobs.org/workforce-statistics/data-center/statistical-programs/local-area-unemployment-statistics. Employment data is not seasonally adjusted.

[15] U.S. Government Accountability Office, “COVID-19 Relief: Funding and Spending as of Jan. 31, 2023,” February 2023, https://www.gao.gov/assets/gao-23-106647.pdf.

[16] Congressional Research Service (CRS), “Infrastructure Investment and Jobs Act: Funding for USDA Rural Broadband Programs,” November 19, 2021, https://crsreports.congress.gov/product/pdf/IF/IF11918.

[17] Office of Policy, “The Inflation Reduction Act Drives Significant Emissions Reductions and Positions America to Reach Our Climate Goals,” Department of Energy, n.d., https://www.energy.gov/policy/inflation-reduction-act-drives-significant-emissions-reductions-and-positions-america-reach.

[18] FPI analysis of the Internal Revenue Service’s “SOI Tax Stats - Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Statistics” for the first, second, and third round of Economic Impact Payments (EIPs) via https://www.irs.gov/statistics/soi-tax-stats-coronavirus-aid-relief-and-economic-security-act-cares-act-statistics#EIP1. When adjusted for inflation to the first-half of 2024, Floridians received $65 billion in EIPs between 2020 and 2021.

[19] FPI analysis of “Survey of Income and Program Participation (SIPP): 2022 SIPP Data,” U.S. Census Bureau, Last Revised June 26, 2023, https://www.census.gov/programs-surveys/sipp/data/datasets/2022-data/2022.html. Also “Survey of Income and Program Participation (SIPP): 2021 SIPP Data,” U.S. Census Bureau, Last Revised August 24, 2023, https://www.census.gov/programs-surveys/sipp/data/datasets/2021-data/2021.html. SIPP asked “Did respondents mostly spend, save, pay off debt, or give away the EIP(s) received?” and the possible responses included: “1. Mostly spent; 2. Mostly saved; 3. Mostly paid off debt; 4. Mostly gave away (to charity or someone in need).”

[20] Senate Committee on Appropriations, House Appropriations Committee, and  Legislative Office of Economic and Demographic Research (EDR), “State of Florida: Long-Range Financial Outlook (Fiscal Years 2022-23 through 2024-25),” September 3, 2021,  page 38, http://edr.state.fl.us/Content/long-range-financial-outlook/3-Year-Plan_Fall-2021_2023-2225.pdf.

[21]  Senate Committee on Appropriations, House Appropriations Committee, and  Legislative Office of Economic and Demographic Research (EDR), “State of Florida: Long-Range Financial Outlook (Fiscal Years 2022-23 through 2024-25), page 6.

[22] Revenue Estimating Conference for the General Revenue Fund, “General Revenue Fund Financial Outlook Statement: Including Fiscal Year 2023-24 Estimated Revenue, Actual Transfers, and Other Adjustments as of July 26, 2024 FY 2023-24 through FY 2028-29,” July 26, 2024, http://edr.state.fl.us/Content/revenues/outlook-statements/general-revenue/240802_GRoutlYE.pdf. Specifically, see estimates for total funds available starting FY 2024-25 through FY 2028-29.

[23] Andrew F. Haughwout, Donghoon Lee, Daniel Mangrum, Joelle Scally, Wilbert van der Klaauw, and Crystal Wang, “Delinquency Is Increasingly in the Cards for Maxed‑Out Borrowers,” Federal Reserve Bank of New York, May 14, 2024, https://libertystreeteconomics.newyorkfed.org/2024/05/delinquency-is-increasingly-in-the-cards-for-maxed-out-borrowers/.

[24] Federal Reserve Bank of New York Research and Statistics Group, “Data: Quarterly Report on Household and Credit (2024:Q1)” Federal Reserve Bank of New York, May 2024, page 32, https://www.newyorkfed.org/microeconomics/hhdc.html.

[25]  Federal Reserve Bank of New York Research and Statistics Group, “Data: Quarterly Report on Household and Credit (2024:Q1)” Federal Reserve Bank of New York, May 2024, page 34.

[26] Office of Economic and Demographic Research (EDR), “General Revenue Collections,” May 2024, http://edr.state.fl.us/Content/revenues/reports/monthly-revenue-report/newsletters/nlmay24.pdf.

[27] Senate Committee on Appropriations, House Appropriations Committee, and  Legislative Office of Economic and Demographic Research (EDR), “State of Florida: Long-Range Financial Outlook (Fiscal Years 2022-23 through 2024-25),” page 39.

[28] The Florida Office of Economic and Demographic Research (EDR) compiles a list of all tax expenditures as part of the Florida Tax Handbook. See page 32 of the 2023 Florida Tax Handbook: http://edr.state.fl.us/content/revenues/reports/tax-handbook/. See also Santis, “Florida’s Shadow Budget Needs Greater Scrutiny,” Florida Policy Institute, 2022, https://www.floridapolicy.org/posts/2022-floridas-shadow-budget-needs-greater-scrutiny.

[29] FPI analysis of Office of Economic and Demographic Research (EDR), “Population and Demographic Data - Florida Products: Historical County Revised Intercensal Estimates 2000-2010,” May 2011, and “Historical County Revised Intercensal Estimates 2010-2020,” November 2021, http://edr.state.fl.us/Content/population-demographics/data/index-floridaproducts.cfm. For a breakdown of diversity changes see: Office of Economic and Demographic Research (EDR), “Population and Demographic Reports: Florida’s Population - 2024, Volume 1,” http://edr.state.fl.us/Content/population-demographics/reports/econographicnews_2024_Volume%201.pdf.

[30] FPI analysis of U.S. Census Bureau, “American Community Survey, 1-Year Estimates,” 2022, https://data.census.gov/table/ACSDP1Y2022.DP05?q=population%20in%20Florida&g=010XX00US$0400000&moe=false.

[31] Office of Economic and Demographic Research (EDR), “Population and Demographic Data - Florida Products: Population: 2025, 2030, 2035, 2040, 2045, & 2050,” EDR, October 2023, page 4, http://edr.state.fl.us/Content/population-demographics/data/Pop_Census_Day-2022.pdf.

[32] U.S. Census Bureau, "Annual Survey of State and Local Government Finances, 2021," June 29, 2023, https://www.census.gov/programs-surveys/gov-finances.html. To make comparisons between Census Geographies, the present analysis used data from the Census Bureau’s 2021 Annual Survey of State and Local Government Finances, adjusted for inflation to the first half of 2024, used population statistics from the Census’ "American Community Survey, 5-Year Estimates 2020,” and determined per capita tax collections to be $2,290 (unadjusted for inflation)/$2,761 (adjusted).

[33] Florida Timeline, “1924 – Prohibition of Personal Income and Inheritance Taxes,” n.d., https://www.floridatimeline.org/timeline/1924-prohibition-of-personal-income-taxes-and-inheritance-taxes/.

[34]  Florida Timeline, “2006 – Repeal of Intangibles Tax,” n.d., https://www.floridatimeline.org/timeline/2006-repeal-of-intangibles-tax/.

[35]  Here, the South conforms to the United States’ Census Bureau’s Geographic Levels (https://www.census.gov/programs-surveys/economic-census/guidance-geographies/levels.html). Accordingly, Census regions and divisions are groupings of states that subdivide the United States. The Census divides the South (region) into the South Atlantic (Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia), East South Central (Alabama, Kentucky, Mississippi and Tennessee), and West South Central (Arkansas, Louisiana, Oklahoma and Texas).  Data is from the U.S. Census Bureau, "Annual Survey of State and Local Government Finances, 2021," June 29, 2023, https://www.census.gov/programs-surveys/gov-finances.html. Totals adjusted for inflation to the first half of 2024, incorporating population statistics from the Census’ "American Community Survey, 5-Year Estimates 2020.”

[36] Carl Davis et al., “Who Pays? A Distributional Analysis of the Tax Systems in All 50 States."

[37]  Budget figures rounded to the nearest million.

[38] Samantha Waxman, “3 reasons why states should tap rainy day funds now,” Center on Budget and Policy Priorities (CBPP), 2020, https://www.cbpp.org/blog/3-reasons-why-states-should-tap-rainy-day-funds-now.

[39] Reserve totals come from Florida’s Executive Office of the Governor, “The Focus on Florida’s Future Budget: Overview, Debt Reductions, and Reserves,” June 12, 2024, https://www.flgov.com/wp-content/uploads/2024/06/2024-25-GAA-Highlights.pdf.

[40] Specifically, the State of Florida maintains a minimum reserve equivalent to 3.9 percent of the revenue estimate each year. See Senate Committee on Appropriations, House Appropriations Committee, and Legislative Office of Economic and Demographic Research, “State of Florida: Long-Range Financial Outlook, Fiscal Years 2023-24 through 2025-26,” September 9, 2022, pages 35-36,  http://edr.state.fl.us/Content/long-range-financial-outlook/index.cfm.

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Re-employment Assistance (RA)

American Rescue Plan Act Changes. The American Rescue Plan Act of 2021 extended PEUC and PUA benefits through the week ending September 6, 2021. It also increased the maximum duration of PEUC benefits ($300 a week) to 53 weeks and the maximum duration of PUA to 79 weeks. Although PEUC and PUA did not end until September 6, 2021, Florida withdrew from the Federal Pandemic Unemployment Compensation Program (FPUC) effective June 26, 2021. FPUC provided persons who were out of work due to COVID-19 with an additional $300 a week in unemployment insurance.

Reemployment Assistance weeks reverted to 12 effective January 1, 2022. DEO determines the maximum number of weeks available to RA claimants based on a statutory formula that looks at the average unemployment rate for the most recent third calendar year quarter (i.e., July, August, and September). Based on the downturn in unemployment, the maximum number of weeks for RA reverted to 12 effective January 1, 2022.

RA work-search and work registration requirements reinstated on May 30, 2021. Persons filing an application for RA benefits beginning March 15, 2020, are not required to complete work registration in Employ Florida through May 29, 2021. In addition, work search requirements for individuals requesting benefits for the weeks beginning March 15, 2020, were also reinstated on May 30, 2021.

RA biweekly reporting requirements reinstated. Although previously waived, biweekly reporting was reinstated effective May 10, 2020. DEO’s guide to claiming weeks is here.

Mobile app deployed. DEO has deployed a mobile app for RA applications.

‍DEO announces extended benefits. DEO announced implementation of Extended Benefits (EB).

Resources and guidance. For a list of resources and guidance from the United States Department of Labor on unemployment insurance and COVID-19, go here.

For DEO’s “Reemployment Assistance Frequently Asked Questions and Additional Resources,” updated 12/30/2020, go here.

For DEO’s latest claims data, go here.

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Department of Children and Families (DCF) Multi-Program Policies

DCF opens offices. DCF has reopened its brick-and-mortar storefronts, which were previously closed  due to coronavirus.

DCF adds call center numbers. DCF has added a call center number for Monday through Friday, from 7 a.m. to 6 p.m. Call center numbers now include 850-300-4323, 866-762-2237, or TTY 1-800-955-8771.

Certification periods extended by 6 months only through August 2020. Certification periods for cash, food and medical assistance were extended by 6 months for individuals and families scheduled to recertify in April through August  2020. FNS’ approval of the SNAP extension for August is here.  However, effective September 1, 2020, SNAP, TANF and Medicaid recertifications have been reinstated, although DCF says that no one will lose Medicaid due to recertification.

‍DCF allows phone interviews. Phone interviews are now being used for TANF cash and SNAP food assistance.

Mandatory work requirements suspended only through May 2021. Under a directive from Governor DeSantis to waive work requirements for safety net programs, DCF  waived work requirements for individuals participating in the Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) through May 2021. To do this, DCF explains that it partnered with the Department of Economic Opportunity to apply “good cause” statewide for TANF and SNAP recipients who would otherwise be subject to participation in mandatory work requirements as a condition of receiving those benefits. Through May 2021, persons who were sanctioned in the past due to work requirements will be able to reapply and participate in SNAP or TANF again.
‍

Work requirements were reinstated effective June 1, 2021.

Supplemental Nutrition Assistance Program (SNAP)

Emergency allotments (EA) ended. DCF automatically supplemented SNAP allotments of current recipients up to the maximum for a household’s size for July 2021. However, EA was discontinued beginning August 1, 2021.

The SNAP benefits increase by 15 percent ended in October 2021. Floridians who participate in SNAP to put food on the table will receive a temporary 15 percent supplement to SNAP under COVID relief passed by Congress and extended by the American Rescue Plan Act through September 2021.

FNS permanently increases SNAP through revamp of the Thrifty Food Plan. Effective October 2021, FNS has mandated a permanent increase to SNAP through a revamp of the Thrifty Food Plan. DCF says that the increase amounts to about 6% for Floridians.

Time limits suspended. SNAP time limits are suspended during the COVID-19 public health emergency. No one in Florida should be barred from SNAP due to time limits, even if they exhausted their time limit in the past.

Florida granted waiver to allow families to purchase groceries online. DCF has been granted a federal waiver to permit the State of Florida to launch a pilot project statewide effective April 21, 2020, that allows families to purchase groceries online with their Electronic Benefit Transfer (EBT) card instead of going into stores.

  • At present, participating retailers are Walmart, Amazon, Aldi, BJ’s Wholesale Club, and Publix. DCF cautions, however, that EBT cards cannot be used for delivery fees.

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Medicaid

No Medicaid terminations from March 2020 through the end of the federal public health emergency. The national public health emergency has existed since January 27, 2020 and has been renewed by the Secretary of the U.S. Department of Health & Human Services in 90-day increments since that time. The most recent renewal is effective January 16, 2022.

On March 31, 2020, AHCA alerted providers and DCF posted on the ACCESS website that:

  • No Medicaid recipient will lose Medicaid eligibility during the COVID-19 public health emergency (unless the individual is no longer a state resident or request voluntary termination); under the newly enacted Families First Coronavirus Response Act, a state is prohibited from ending coverage for recipients enrolled as of March 18th for the duration of the public health emergency if the state opts to obtain an enhanced federal Medicaid match.
  • AHCA is working to notify recipients who may have received a termination notice in the month of March that their benefits will be reinstated.
  • An FAQ released by federal CMS provides some examples of Medicaid eligibility groups  protected under these "no termination" requirements including: former foster care youth aging out when they turn 26; youth aging out of children's eligibility when they turn 19; individuals who become ineligible for SSI; individuals no longer qualifying for Qualified Medicare Benefits (QMB). In a May 5, 2020 update, CMS states that this “no termination” requirement also applies to medically needy individuals determined eligible during the public health emergency even if they do not continue to meet their monthly share of cost in subsequent months. This protection extends through the last day of the month the public health emergency ends.  
  • On October 28, 2020, federal CMS issued a new interim final rule weakening the continuous coverage, “no termination” requirement. In states like Florida that have opted to cover full benefits for lawfully residing children in the first 5 years after entry into the United States, once they turn 18, states are now required to limit their coverage to emergency services.  In addition, states are now permitted to reduce optional benefits such as dental coverage or increase cost-sharing such as requiring nursing home residents to contribute more to their costs of care. But in Florida this type of change would require the Legislature to amend state Medicaid law.  

Redetermination/recertification times are reinstated. As of October 1, 2020 AHCA's website is alerting recipients that the Department of Children and Families is now mailing letters for case reviews to check if a household is still eligible for Medicaid and/or Medically Needy. AHCA is urging people receiving these letters to take steps now to re-apply. But note, Medicaid coverage will not end during the COVID-19 Public Health Emergency. In January 2021 DCF conducted one-year “automated renewals” for people whose sole income is social security and SSI and are enrolled in an SSI-related Medicaid program (e.g., MEDS/AD,  Medically Needy and Medicare Savings Programs). People getting VA income were not included in the automated renewal.

Extended application time. Effective with applications filed in February 2020, the time for submitting documentation required to process an application is extended for 120 days from the date of the application and eligibility will still be effective the first day of the month the application was received. Effective July 1, 2021, this policy has been rescinded. Medicaid applications submitted on or after July 1, 2021 may be denied on the 30th day after application or the day after verification information is due. Applications filed prior to July 1, will be allowed 120 days to provide requested verification to establish Medicaid eligibility.

‍Exclusion of additional unemployment payments in determining eligibility. The $600/week of additional unemployment insurance payments under the CARES Act will not be counted as income in determining Medicaid eligibility. (However, these payments will be counted as income in determining marketplace subsidy calculations.)

Coverage of Medicaid services during the state of emergency

  • Coverage of all medically necessary services to COVID-19 testing and treatment.
  • Waiver of limits on services that must be exceeded to maintain the health and safety of recipients diagnosed with COVID-19 or when necessary to maintain a recipient safely in their home
  • Waiver of prior authorization requirements for hospital, physician, advanced practice registered nursing, physician assistant, home health services and durable medical equipment and supplies. As of June 19, 2020, AHCA reinstated prior authorization requirements for all of these services.
  • Waiver of copayments for all services
  • Waiver of limits on early prescription refills, except for controlled substances
  • Coverage of a 90-day supply of maintenance prescriptions when available at the pharmacy
  • Reimbursement of out-of-state providers providing medically necessary services to Florida Medicaid beneficiaries. As of July 1, 2021, the availability of provider “provisional enrollment” for in-state and out-of-state providers will end.
  • Delay of fair hearings only in those instances when the recipient is continuing to receive services pending the outcome of the hearing

COVID-19 Vaccines for Medicaid Enrollees. In an executive order published March 16, 2021 Governor DeSantis revised the vaccine distribution plan, which applies to the general public including Medicaid enrollees, to lower the age requirement to 40 effective March 29, 2021 and then effective April 5, 2021 all Floridians are eligible to receive any COVID-19 vaccination approved by the Food and Drug Administration.

Medicaid enrollees eligible to receive the vaccine may visit myvaccine.fl.gov to find a location distributing the vaccine and to schedule an appointment.

On March 12, 2021, AHCA published instructions for Medicaid enrollees on how to obtain Medicaid transportation once they have scheduled an appointment for a vaccine. AHCA states: "Florida Medicaid will take you to get the COVID-19 vaccine at no cost. All you need to do is set up a time to get your vaccine. Next, let your Medicaid plan know you need a ride and they will take care of the rest. If you are not enrolled in a plan, call the Medicaid Helpline at 1-877-254-1055 to find out the name and phone number for a transportation service."

The state has also recently launched a new email system to help bring COVID-19 vaccines to homebound seniors. Seniors will be able to sign up to have the vaccine come to them by emailing a request to HomeboundVaccine@em.myflorida.com.

AHCA has posted Medicaid Alerts and FAQs providing more detail on Medicaid service changes in response to COVID-19. They address a wide range of topics including, but not limited to: telemedicine guidance for medical, behavioral health, and early intervention services providers; long-term care provider network flexibilities allowing more types of providers to deliver specified long term care services; and continuity of care for adult day care center enrollees during the time these centers are closed.

AHCA is loosening coverage restrictions for behavioral health services. Effective May 5, 2020, all prior authorization requirements for mental health or substance use disorder treatment are waived and service limitations (frequency and duration) are lifted. For behavioral analysis services, current authorizations will be extended through an "administrative approval process" which does not require providers to reassess beneficiaries currently getting services. Effective July 1, 2021 service limits will be reinstated for behavioral health services and effective July 15, 2021 Medicaid prior authorization requirements will be reinstated for behavioral health services.

Per a May 29, 2020 provider alert, during the state of emergency AHCA will be reimbursing providers for telemedicine well-child visits provided to children older than 24 months through age 20. Providers are directed to actively work to schedule follow-up in-person visits to administer immunizations and other physical components of the exam which cannot be accomplished through telemedicine.  

The public charge rule will not be applied to immigrants’ use of Medicaid benefits for COVID-19 testing and treatment.

Coverage of home and community-based waiver services (HCBS) - In response to the public emergency, Florida obtained approval from the federal government to make changes in HCBS waiver programs, including the Long Term Care and Developmental Disabilities programs. The changes are effective retroactively from January 27, 2020 to January 26, 2021. Details can be found here. They include, but are not limited to:

  • permitting virtual evaluations, assessments and care planning meetings in lieu of face to face meetings and use of electronic signatures;
  • lifting service limits in order to address health and welfare issues of enrollees;
  • adjusting service prior authorization requirements;
  • temporarily expanding the settings where services can be provided;  
  • allowing payments for support services provided to enrollees in hospital or short- term institutional settings; and
  • prohibiting visitors in certain residential settings to minimize the spread of infection.

Note on COVID-19 testing, treatment, and vaccines for the uninsured. Florida has not opted to receive 100 percent federal Medicaid funding for COVID-19 testing of people without health insurance. Under the 2021 American Rescue Plan Act this option has been expanded to cover COVID-19 treatment and vaccines for the uninsured as well. Since the state has not taken up this option Floridians must look to an uneven patchwork of free testing, treatment, and vaccine resources scattered around the state. AHCA advises that uninsured people may receive free testing from their county health department or a federally qualified health center and that “many communities provide testing for free for individuals who do not have insurance. Please [click here] to find a test site in your area. Uninsured individuals should ask before the test whether testing is free of charge." There are no state agency instructions on where uninsured people can receive free treatment. However, more information on possible sources for free treatment is available here.

Residency proof no longer required at some vaccine sites, “paving the way for migrants.” - On April 29, 2021 Surgeon General Rivkees issued a new public health advisory specifying that COVID-19 vaccines are available to “a Florida resident” or someone “who is present in Florida for the purpose of providing goods or services for the benefits of residents and visitors of the State of Florida.” This new policy applies to all state-run and federally supported vaccination sites. It rescinds an advisory issued in January that had restricted vaccinations to people who could show proof of Florida residency

2021 unemployment compensation claimants can access free or reduced cost health insurance through the ACA marketplace. The Affordable Care Act (ACA) Marketplace was re-opened in February 2021 to give people who need health insurance a new “special enrollment" opportunity to get covered. The 2021 American Rescue Plan eliminated or vastly reduced premiums for many people with low or moderate incomes.

Starting July 1, 2021, people who received or have been approved for unemployment compensation for any week beginning in 2021 can access free or reduced cost comprehensive health insurance plans through the ACA marketplace. This benefit is available regardless of someone's current income. To get this benefit, people must enroll in the marketplace no later than August 15, 2021. For help with enrollment, contact Covering Florida at 877-813-9115.

Child Nutrition Programs

School children in distance learning still eligible for free or reduced cost meals. Students in distance learning for  2020-21 can still receive school meals through the National School Lunch Program if they are eligible. The student or parent/guardian may pick up meals at the school but should contact their school for more information.

For a list of current child nutrition program waivers for Florida from USDA, go here.

Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)

Congress allows increased fruit and vegetable benefits. At present, WIC provides $9 for children and $11 for women monthly for fruits and vegetables. The American Rescue Plan Act makes funding available for a four-month increase in the benefit of up to $35 monthly, if a state chooses to do so.

DOH attains waiver allowing remote issuance: Department of Health (DOH) obtained a waiver of the requirement that participants pick up their EBT cards in person at recertification or during nutritional education appointments.

‍WIC participants allowed to substitute certain food. Under a waiver from USDA, WIC participants in Florida are allowed to substitute milk of any available fat content and whole wheat or whole grain bread in package sizes up to 24 oz. when 16 oz. packages are unavailable.

‍USDA waived physical presence requirements: Although the scope and logistics are unclear at this time, USDA has given DOH permission to waive the requirement that persons be physically present at each certification or recertification determination in order to determine eligibility under the program through May 31, 2020.

USDA extends certification periods through May 31, 2020, for some participants.

For a list of current WIC waivers for Florida from USDA, go here.


Temporary Assistance for Needy Families (TANF)

HHS provides guidance. HHS has issued guidance on the flexibilities in TANF to respond to COVID-19.

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