Investing in Florida`s Future: What Are Our Choices?
Transcription
Investing in Florida`s Future: What Are Our Choices?
Investing in Florida’s Future: What Are Our Choices? Dr. Carol Weissert Director, LeRoy Collins Institute Professor of Political Science Florida State University November 10, 2014 Looking Behind and Ahead 1987 Zwick report What Kind of Future do we want for Florida? “fundamental changes are needed in the ways we finance government in Florida…” 4 • “We can no longer compete successfully by relying merely on cheap land, cheap labor, low taxes and plenty of sunshine.” – Sound physical infrastructure – Educated and motivated work force – Quality universities and research and development institutions – Reasonable tax rates and prudent spending policy 5 • “Florida is a state with boundless economic potential… • Also a state with jammed highways, polluted natural resources, struggling schools, poorly paid teachers, teeming jails, neglected children, needy senior citizens, inadequate health care, a shortage of affordable housing and a declining quality of life.” 6 • “Florida is a state on a collision course with painful realities that must be faced—now.” 7 8 Tough Choices 2005 • As noted in the Zwick report (1987), in the 1980s Florida faced challenges and also opportunities • Promise of the 1980s slipping away by the 2000s – Growing share of low-skill jobs – Lagging investment in education, Class Size Reduction Amendment (CSRA), accountability sans funding – Infrastructure: low on major urban roads, effective public transportation – Little willingness to raise taxes to alter these things 9 Here’s What We Found This Time • • • • Growing share of low-skill jobs Lagging investment in education Roads not keeping apace with growth Little willingness to raise tax to alter these things 10 In addition, • Florida’s reliance on retirees and tourists comes at a price • Education comparisons of younger generation in Florida are problematic • Florida’s workforce is “hollowing out” • State lags nation and South in K-12 education; higher education • Congestion grows and roads aren’t keeping up 11 • And then there’s Medicaid…. 12 Tough Choices: Shaping Florida’s Future • Bureau of Business and Economic Research – Jim Dewey and Dave Denslow 13 First, setting the stage 14 Income peaks in 2005; Population Growth Continues 105 7 100 6 95 5 90 4 85 3 80 2 75 1 Population Share (% of US) Population Share 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 Per Capita Income (US = 100) Income per capita Data from the U.S. Bureau of Economic Analysis 15 Relative productivity down in the 1990s and 2000s Relative output per worker (US = 100) 95 94 93 92 91 90 89 88 Output 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 87 Trend 1991-2000 Data from the U.S. Bureau of Economic Analysis 16 Florida is Old, Getting Older • 18% Floridians 65+ (14% nation) • By 2020 20% 65+ • By 2030 24% 65+ – 62% of Florida’s children will be black or Hispanic – 29% of Florida’s senior will be black or Hispanic 17 Population Growth by Age Group Growth 4/10-4/30--EDR 18 Implications of Retirees • Demand different set of services – Housing patterns – Labor Market – Politics 19 Figure 2.7: Florida Employment GROWTH, (2000-2010) 60% 50% 40% 30% 20% 10% 0% 20 Going into the Knowledge Economy… Florida’s young workers are less educated! College Graduates in Florida and the US in 2010 by Age and Gender 35% 30% 25% 20% 15% 10% 5% 0% Florida Men US Men Florida Women US Women 25-34 21.6% 27.1% 29.5% 35.0% 35-44 25.3% 29.2% 29.9% 33.3% 45-64 27.9% 29.3% 25.7% 27.9% 65 plus 29.9% 27.4% 17.5% 16.8% 21 Florida South 2009-2010 2008-2009 2007-2008 2006-2007 2005-2006 2004-2005 2003-2004 2002-2003 2001-2002 2000-2001 1999-2000 1998-1999 1997-1998 1996-1997 1995-1996 1994-1995 1993-1994 1992-1993 1991-1992 1990-1991 1989-1990 1988-1989 Education Spending Current Expenditure per Student ($2012) 12,000 11,000 10,000 9,000 8,000 7,000 6,000 US 22 23 24 25 Lagging Higher Ed Human Capital Investment Per FTE State Appropriations per FTE Net Tuition Revenue per FTE Appropriations plus Net Tuition per FTE 20062007 20112012 20062007 20112012 20062007 20112012 US 7,667 5,905 4,395 5,189 12,026 11,094 Florida 8,147 4,832 2,301 2,905 10,448 7,737 FL/US 106% 82% 53% 56% 87% 70% FL Rank 15 37 46 47 43 50 FL Percentile 58 22 16 13 8 0 State appropriation recovered some in FY 2013, 2014 26 Indices of Lane Miles and VMT, Florida and the US (1994 = 100) 170 160 150 140 130 120 110 LM-FL LM-US VMT-FL 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 100 VMT-US 27 Medicaid and Education Spending by Fiscal Year (Billions) $24 $22 $20 $18 $16 Medicaid 2013-2014 2012-2013 2011-2012 2010-2011 2009-2010 2008-2009 $14 Education 28 29 Medicaid Reform? • Medicaid spending per enrollee less in Reform population than non-reform population. • Reform counties had lower Per Member Per Month costs than non-reform counties. 30 Here’s What We Found • • • • • Growing share of low-skill jobs Lagging investment in education Infrastructure needs growing Some troubling demographic trends Reliance on tourists and retirees 31 Record $100 Million in Funding for Florida Tourism 32 Legislative Update $77.1 billion—largest in state history $500 million—tax cuts Increased education funding by 2.6% --$575 million—but $400 from higher property taxes Higher ed--$200 million performance based funding Medicaid-- 33 Economy • Economy is slowly recovering • Unemployment rate lower than nation • Jobs numbers are up 34 National Climate Assessment 35 The Election is Over: Now What? • Calls for another $1 billion in cuts over next 2 years • More funding for transportation, the environment and schools • EDR predicts a balance of $1.5 billion in FY 2015-16 36 • “No longer can Florida be a state that is cheap and proud of it. This seems unfortunate, if not silly, in a competitive, global economy that feeds on high-skilled jobs. Tougher choices remain ahead.” 37 What is the Solution? 38 What is the Solution? • Floridians need to have open minds to guide some tough choices. They have the right to expect their elected officials—like the Floridians of earlier years—to lead the way. Failing to do so is simply choosing to accept a future far less bright than it could be. 39