Florida’s Fiscal Policy: Responsible State BudgetingRandall Holcombe • Thursday February 26, 2015 12:29 PM PDT •
I’ve written a study for the Mercatus Center at George Mason University on Florida’s state government fiscal policy, which can be accessed here. The bottom line is that in an era of growing government and fiscal irresponsibility, Florida’s state government has a record of fiscal responsibility dating back two decades.
Both state government expenditures per person and state government employment as a share of the population have fallen, and when difficult times showed up after the 2008 recession, Florida’s state budget remained balanced without increasing taxes. Expenditures fell by more than 10% during that time to retain budget balance.
While there are some areas in which Florida could have been more fiscally responsible, they are minor compared with the record of balanced budgets, relatively responsible pension funding, low taxes, and shrinking per capita expenditures. In an era where government fiscal responsibility is rare, Florida’s fiscal policies over the past two decades provide a good model for other states.