As the Florida TaxWatch Budget Watch series1 has been detailing, the budget outlook for the state is extremely rosy. Governor DeSantis’s 2022-23 budget recommendations reflect the current fiscal environment. It totals $99.7 billion and just like the current budget, the price tag does not fully account for all the spending it contains.
The Infrastructure Investment and Jobs Act (IIJA),1 signed by President Biden on November 15, 2021, will make a significant investment in the nation’s transportation system and other infrastructure. Billions of dollars will be distributed to the states for a wide range of projects, including all modes of transportation, broadband, cyber security, water infrastructure, energy, climate change, resiliency, and pollution mitigation. Florida will get a sizable chunk of these funds.
The Florida TaxWatch Budget Watch series has been detailing the rapid recovery of the state government’s revenue collections from the initial precipitous drop in the early months of the COVID-19 pandemic. We have highlighted how current General Revenue (GR) estimates are back above the last pre-pandemic estimates. Coupled with billions of dollars in federal aid, Florida is in enviable fiscal shape as the Legislature heads into the 2022 Regular Session.
The massive amount of federal funding provided in the six stimulus acts provides an unprecedented opportunity to improve Florida and fund programs and infrastructure that have had long-standing backlogs with few past feasible opportunities to address to this degree.
Last year, COVID-19’s arrival in Florida and the attendant economic shutdown had state forecasters—and virtually everyone else–predicting gloomy fiscal times for Florida. The 2020 legislative Long-Range Financial Outlook estimated that the 2021 Legislature would be facing a budget shortfall of $2.7 billion, and without significant spending cuts, the shortfalls would continue for at least two more years.
Florida General Revenue (GR) collections continue to exceed expectations throughout the pandemic and the new forecast paints a rosy budget picture for legislators as they head toward the 2022 Session.
Florida TaxWatch is pleased to present taxpayers with a guide to the FY2021-22 state budget, which went into effect July 1, 2021.
The 2021 Budget turkey Watch report: an analysis of the transparency and accountability of the Budget processis the result of an annual independent review of Florida’s FY2021-22 budget by Florida TaxWatch. Budget Turkeys are items, usually local member projects, placed in individual line-items or accompanying proviso language that are added to the final appropriations bill without being fully scrutinized and subjected to the budget process.
As the chambers get ready to head into conference, this Budget Watch takes a look at the two chambers’ budgets as they passed on the respective floors.
The General Revenue Estimating Conference (REC) met on April 6 and increased Florida’s general revenue (GR) projections by $1.476 billion in the current budget year and $551 million in FY2021-22.
Despite the negative revenue impact of the COVID-19 pandemic and the Legislature’s early talk of shortfalls and budget cuts, Governor Ron DeSantis has released a proposed budget for FY2021- 22 that totals $96.578 billion, a $4.308 billion (4.7 percent) increase over current year spending.
The General Revenue Estimating Conference (GREC) met on December 18 and 21 and increased Florida’s general revenue (GR) projections by $1.486 billion in the current budget year and $623 million in FY2021-22.1 This restores 39 percent of the $5.4 billion two-year reduction in the estimates adopted by the GREC last August.
The severe economic contraction brought on by COVID-19 has reduced state revenues significantly. The pandemic is also increasing government costs such as virus response/recovery and assistance to those harmed economically by the public health emergency. This spells trouble for the current and future state budgets.
After 128 months of economic expansion through February 2020, the global coronavirus pandemic brought on the largest post-war contraction in U.S. history. With the resulting closure or slowdown of businesses, record unemployment, and a loss of tourism, Florida’s economy is suffering. The impact on government revenue has been and will continue to be profound. The General Revenue Estimating Conference met on August 14 and reduced the revenue projections by $3.420 billion in the current budget year and $1.994 billion in FY2021-22. This follows news that actual collections in FY2019-20 fell $1.9 billion short of the estimate.
As Florida continues its battle with the COVID-19 pandemic, the state has released General Revenue (GR) collections data for June (the last month of the FY19-20 fiscal year).1 Collections came in $427.8 million (13.4 percent) below estimate, following losses of $878.1 million (29.4 percent) in April and $779.6 million (26.4) percent in May. Because collections were running a bit above estimate before the pandemic hit, the $2.1 billion loss in the last quarter puts Florida down $1.9 billion (5.7 percent) for the year.
After deducting the Governor’s vetoes, the net result is FY2020-21 appropriations totaling $92.270 billion, still a $1.3 billion increase over the previous year. As is usually the case, it is the largest state budget in history. In addition to many facts and figures explaining this year’s budget, past data are also provided to put it in historical context. We hope this annual budget pocket guide gives you the information you need to better understand where and how your hard-earned tax dollars are being spent.
General Revenue (GR) collections for the month of May came in $779.6 million (26.4 percent) below estimate. This news comes from the new Monthly Revenue Report, just released by the Office of Economic and Demographic Research.1 It is somewhat surprising that the amount by which May GR collections fell short of the previous estimates is less than that of April ($878.1 million). May collections largely reflect sales activity in April, a month that was almost entirely under the statewide ‘Safer at Home’ order.
As the nation recovers from one of the worst economic recessions in history, Florida continues to battle unprecedented fiscal challenges and budget shortfalls that have made business-as-usual in state government unsustainable. In response to this crisis, this report presents immediately actionable ideas in the event that a significant budget deficit occurs in FY2020-21.
The report promotes additional oversight and integrity in the state’s budgeting process based on the principle that: because money appropriated by the Legislature belongs to the taxpayers of Florida, the process must be transparent and accountable, and every appropriation should receive deliberation and public debate. The budget review identifies appropriations that circumvent transparency and accountability standards in public budgeting.
Net General Revenue (GR) collections for the month of April came in $878.1 million (29.4 percent) below estimate. This news comes from a new Monthly Revenue Report just released by the Office of Economic and Demographic Research.1 This is the first month of data to show a significant decrease in revenues due to the impact of COVID-19 on the state’s economy. April GR collections generally reflect March sales tax activity, so the decline in May collections (reflecting April sales) will be much larger.
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