The TaxWatch Research Blog

This blog post outlines the state's response to Hurricanes Helene and Milton and offers tax relief suggestions to ease the economic burden on impacted residents. It emphasizes extending tax deadlines and delaying property tax payments to mitigate financial stress. The recommendations include expanding relief to all affected areas, halting audits, providing refunds for destroyed property, and encouraging local governments to reduce millage rates. Additionally, it advocates for new legislation to refund property taxes for uninhabitable commercial properties and urges Congress to pass a federal Disaster Tax Relief Act.

Florida’s childcare system is at a crossroads, impacting families, businesses, and the economy. With demand rising and federal funding returning to pre-pandemic levels, the state faces critical questions: Should childcare focus solely on supervision or also provide education? Can sustainable policies close the gap in access? Explore how Florida’s future workforce and economy depend on quality early learning options.

The 2023 Debt Report for Florida highlights the state's strong financial standing, with a debt ratio below the 6% legislative target for the tenth consecutive year. Florida's debt and debt service have decreased, while General Revenue collections increased by $3.3 billion. Rating agencies affirmed AAA ratings and a stable financial outlook. The report details Florida's debt management strategies, including limiting debt accumulation and maintaining high reserves, contributing to a strong debt capacity and reduced future costs. Local government debt, however, remains comparatively high. The state's prudent financial practices are underscored, benefiting taxpayers and indicating a healthy fiscal future.

Serving as the eyes and ears of Florida taxpayers, Florida TaxWatch annually reviews the state budget to prepare its Budget Guide, showing how hard-earned taxpayer dollars are spent. This year, consistent with a recommendation by Florida TaxWatch, line item 2923 of the 500-page General Appropriations Act appropriates $500,000 in nonrecurring funds to the Department of Management Services to contract for a comprehensive analysis to determine the fiscal impact and feasibility of extending the State Group Insurance Program (SGIP) to employees of the Florida College System.

As Florida continues to grow, we must ensure that our state remains affordable for people to live, work, and play. Florida’s current population boom saw the state increase its population by nearly 15 percent between 2010 and 2020. The state added a little less than three million residents in under a decade. Florida is currently the fastest growing state in the nation, and we should increase our housing stock to meet these population pressures. 

We cannot forget that the money appropriated by the Legislature belongs to the taxpayers of Florida. But what happens when appropriations circumvent the budget process or competitive project selection? Or when they bypass the opportunity for public scrutiny or competitive bidding?

Tourism plays a major role in Florida’s economic strength. More than 142 million tourists are expected to visit Florida in 2023. In 2019, 131 million visitors spent nearly $100 billion, supporting 1.6 million Florida jobs that paid $57 billion in wages. The spending generated $12.7 billion in state and local taxes. Without the state and local taxes generated by tourism, each Florida household would have to pay as much as $1,420 in additional taxes just to maintain the current level of government services.

The COVID-19 pandemic demonstrated the importance of access to reliable and affordable broadband Internet service in our daily lives, which makes available an almost limitless amount of information; provides a platform for education, health care, and commerce; and facilitates family connections, social communication, and idea sharing. What’s more, public and private agencies alike offer critical services and regular updates for citizens through online programs.

Florida has a diverse and beautiful natural environment, ranging from the Everglades to the beaches of the Florida panhandle. The state is also vulnerable to a variety of extreme weather events, such as flooding and hurricanes, which are projected to become more severe in the coming decades due to climate change. Protecting the state against these events could be a costly undertaking. Various proposals seek to minimize the risks through new infrastructure projects such as sea walls. But in deciding how best to adapt to extreme weather risk, Florida should be sure to consider using the state’s “natural infrastructure” to protect itself in a less costly and more sustainable way.

Florida’s homeowners insurance market is in the emergency room on life support. Homeowners and insurance agents across the state struggle to obtain reasonably priced homeowners insurance. In 2022, the average annual premium for a homeowners insurance policy was $4,231, close to three times the U.S. average of $1,544, and nearly twice Florida’s $2,505 average just two years ago. In 2023, premiums are on track to climb even higher. The Florida state legislature held two special sessions in 2022 focused on making insurance more available and affordable. Although the meetings helped raise lawmakers’ awareness of the cause of the crisis and introduced measures to arrest further market deterioration, reasonably priced insurance is expected to remain hard to find in 2023.

Florida has always endured a complex property insurance market due its unpredictable weather and proneness to hurricane catastrophes. Recent issues, however, have nearly pushed the market to the brink of collapse. With the combination of insurance company insolvencies, excessive litigation from fraud, and the recent devastation from Hurricane Ian, Florida’s crisis continues to worsen.

In December 2022, data for the American Community Survey 2017-2021 5-Year Estimates was released. On January 26^th, the 5-Year Microdata and 1-Year Data Profiles will be available. An accurate decennial census count is important for community and business decision-making. The census count creates data estimates touching nearly every facet of a taxpayer’s life, ranging from average work commutes to how many people have access to broadband. While the census is the basis for such statistics, it is obvious that counting people cannot provide such in-depth knowledge alone. The census has a partner: the American Community Survey (ACS).

It’s no secret that climate change poses acute risks and costs for Florida. With its extended coastline and geographic position, the state has always been vulnerable
to damage from hurricanes, flooding and sea level rise. While some of the consequences of climate change have been widely circulated in the media and politics, other serious risks have received comparatively less attention. In particular, the risks that rising sea levels and increased flooding pose to Florida’s drinking water supply and to its water infrastructure deserve greater consideration.

Florida has remained in good financial standing this past fiscal year. This is also true of the state’s debt position. FY 2021-22 marks the ninth consecutive year with a debt ratio below the six percent target established by the Legislature. In addition:

Where and how well our school districts spend our education dollars can have a profound impact on student academic achievement and success. Historically, education makes up about one-fourth of Florida’s total budget. Florida TaxWatch believes that shifting education spending away from administrative and other expenses and toward classroom/instructional expenses is beneficial.

On October 26, 2022, Florida TaxWatch hosted a discussion of subject matter experts to gain insight as to how Florida will overcome the impacts of Hurricane Ian as residents rebuild their homes, infrastructure, businesses, and finances. The discussion highlighted actions already taken to support residents, as well as challenges left for Florida to resolve. The Florida TaxWatch team was joined by Eve Rainey, the Executive Director of the Florida Emergency Preparedness Association; Kari Hebrank, Senior Governmental Consultant with Carlton Fields; and Fred E. Karlinsky, co-chair of the Insurance and Regulatory Transaction Practice at Greenberg Traurig. The discussion was moderated by Florida TaxWatch Senior Vice President of Research Bob Nave.

On Wednesday, August 31, Florida TaxWatch hosted a webinar “Demographic Data for Businesses & the Census” to discuss Florida’s population undercount in the 2020 Census, the impact this has on the business community, and efforts to secure more accurate data. During our webinar, we were joined by Mary Jo Hoeksema, Co-director of the Census Project; Dr. Karthick Ramakrishnan, Founder and Director of Census Legacies; Susan Racher, Vice President and CFO of Wallace H. Coulter Foundation; and Ashley Dietz, President and CEO of Florida Philanthropic Network.

Patt Maney is a retired brigadier general and former county court judge who has represented District 4 (Part of Okaloosa) in the Florida House of Representatives since 2020. Reforming Florida’s civil commitment laws was one of his primary motivators for seeking legislative office because as a judge, he presided over Baker Act hearings and witnessed the law’s various shortcomings.

On Wednesday, August 17, Florida TaxWatch and the Gunster law firm co-hosted a webinar designed to help Florida businesses better understand and comply with the requirements of the Individual Freedom Act (also known as the “Stop WOKE” Act) passed by the 2022 Florida Legislature. Florida TaxWatch is grateful to Holly Goodman and Joseph Santoro of the Gunster law firm for sharing their insights on the effects of this controversial legislation on Florida businesses. Florida TaxWatch is pleased to present the following summary of the webinar.

When the pandemic began the U.S. Department of Agriculture (USDA) extended free meals to school-age children all year long, including the summer months. The program will no longer be available at the end of this school year and many food insecure families are now facing a summer without school food assistance programs. The situation is made even more dire as inflation and the cost-of-living soars, leaving millions of individuals and families in critical need of year-round nutritional assistance. 

Florida is facing a property insurance crisis and the governor has called the legislature back to Tallahassee, May 23-27, to tackle the issue.  While the proposed bills to be discussed have not been filed yet, the Governor’s proclamation announcing the special session suggests areas that should be addressed, including reinsurance, building codes, litigation reform, and Citizens Property Insurance. Why is this such a pressing issue? 

On Wednesday, May 4, 2022 Tony Carvajal (Executive Vice President, Florida TaxWatch) will address the Broward Workshop at their 14th Annual State of the County Forum. 

January 2022 marked the 12th Annual Human Trafficking Awareness Month. A recognized memorial since 2010, the designation seeks to raise human trafficking awareness and educate the public about the crime’s heinous impact on millions of people across the world. Given the criminal enterprise nature of human trafficking, there is also an inherent economic cost to communities and the state of Florida when exploitation prevents victims from leading dignified, generative lives. What are the costs and implications of human trafficking in Florida?

Throughout the U.S. and in Florida, a variety of federal and state public programs exist to provide economic stabilization and promote economic self-sufficiency for low-income individuals and families with children. These public supports are often designed with specific income eligibility limits so that benefits phase out as an individual or family earns more. Although constructed to reduce reliance on public assistance over time while empowering families to move up the economic ladder, this program design can sometimes have the unintentional consequence of creating a “benefits cliff” that stifles upward mobility.

This working paper is an endeavor to learn more about Florida’s labor force participation rate of women. Exploring reasons for women’s absence from the workforce can help Florida better understand the needs of its entire workforce. As a working paper, Florida TaxWatch hopes to start a discussion and encourage others to offer their insights about women’s absence from the workforce.