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CUTBACK BUDGETING IN FLORIDA: CAUSES, APPROACHES, AND CONSEQUENCES
Author(s) -
Grizzle Gloria A.,
Trogen Paul C.
Publication year - 1994
Publication title -
southeastern political review
Language(s) - English
Resource type - Journals
eISSN - 1747-1346
pISSN - 0730-2177
DOI - 10.1111/j.1747-1346.1994.tb00342.x
Subject(s) - recession , revenue , state (computer science) , tax revenue , service (business) , economic policy , population , deficit spending , economics , fiscal policy , business , finance , labour economics , public economics , monetary economics , macroeconomics , economy , debt , demography , algorithm , sociology , computer science
Structural and cyclical causes of cutbacks in Florida state budgets include growing school enrollment and population; the state's corrections policy and Medicaid spending; an inelastic tax structure coupled with an anti‐tax political culture; and federal mandates, aid reduction, and court decisions. Given these stresses, the 1989 recession and resulting revenue shortfalls triggered a series of adjustments to the budget made up of quick fixes, tax increases, and spending cuts. These actions did not address the structural causes of the shortfall. Thus, Florida emerged from the 1989 recession in a weakened financial condition, with an unreformed revenue structure unable to keep up with economic growth, a public service less able to respond to the increased demands for service created by structural factors outside the state's control, and a physical infrastructure and human capital unprepared to compete in a global economy. The result is long‐term fiscal stress.