Florida’s Fiscal Crisis – An Update | Print |
March 2009

All Charts and Tables currently only available in PDF format.

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In December 2008 and February 2009, the Center released two reports describing Florida’s precarious budget situation and potential remedies to mitigate the damage to state programs that the projected revenue shortfalls and program cuts would cause (see www.fcfep.org). Since these reports were released, the situation has worsened. As noted in the reports, as new data became available, the revenue estimates linked to our recommendations would be revised and the budget shortfall would be updated.

The budget shortfall for the fiscal year beginning July 1, 2009, has grown to more than $7 billion – strengthening the case for effectively using the federal economic stimulus funds and modernizing the state’s tax system.

On March 13, the state’s Consensus General Revenue Estimating Conference reduced its General Revenue estimate for the balance of the current fiscal year (FY 2008-09) by an additional $1.1 billion and reduced the General Revenue estimate for FY 2009-10 by 2.3 billion. The current budget year shortfall can be covered by the use of reserve funds and federal stimulus monies, as proposed by the Center and Governor Crist in his recent budget recommendations. However, the estimated budget shortfall for FY 2009-10 now exceeds $7 billion:

  • General Revenue Needs FY 2009-10 ($ in Millions)
  • (Table only available in PDF document)

To meet this enormous shortfall, Florida’s antiquated and unfair tax system must be modernized to meet the needs of the state’s residents, businesses and visitors.

The Center’s report, “Florida’s Fiscal Crisis: the Prescription” presented a thoughtful and reasoned approach to make Florida’s tax system fairer and more responsive to meeting the state’s needs. The original recommendations would have increased state General Revenue for FY 2010 and FY 2011 by $4.3 billion and $4.6 billion respectively. Based on the March 13, 2009, General Revenue Estimating Conference and the March 2009 release of the “2009 Florida Tax Handbook,” the Center has updated its revenue estimates as shown in the following table:

  • UPDATE - Center’s Recommendations March 2009 Total by Fiscal Year ($ in Millions)
  • (Table only available in PDF document)

The Center’s recommendations, together with the use of federal stimulus funds (approximately $2.2 billion as recommended by Governor Crist for FY 2010) will go a long way to meet budget needs for FY 2010 and FY 2011 while modernizing Florida’s tax system.