Florida’s pro-growth fiscal framework helps people flourish. More people are moving with their feet
to Florida than anywhere else in the United States – the Sunshine State saw the largest percent increase
in in-migration (1.9%) in the country in 2022. This was driven by the fact that the state had robust growth in economic output (3.8%) and personal income (6.9%) in the third quarter of 2022, and this supported the second highest percent increase in nonfarm job creation (4.8%) in 2022. This successful framework is a recipe for success. It can and should be improved to remain competitive with other states (as they attempt to strike at Florida’s position) and so that Florida continues to be a place to achieve one’s American dream. While Florida ranks first in economic freedom and near the top in other measures compared with large states and most other states, no state can rest on its laurels or it will fall behind thereby supporting fewer ways for people to prosper.
The ultimate burden of government is how much it spends. Fortunately, Florida’s Governor Ron DeSantis recently released a pro-growth budget with his Framework for Freedom budget of $114.8 billion in recommended all funds appropriations for fiscal year (FY) 2024. The budget also includes $2 billion in tax relief, $15.7 billion in total reserves, and $3.4 billion in the rainy day fund. This sets forth more opportunities for growth and prosperity in Florida.
Based on the analysis in this report and the desire to keep Florida competitive, The James Madison Institute (JMI) builds on the success in Florida by recommending that the state continue to limit the burden of government spending. JMI calls this the Conservative Florida Budget (CFB) which sets a maximum threshold in all funds appropriations for FY 2024 of $116.2 billion.
This maximum threshold is based on the 5.5% rate of the 3-year average of population growth plus inflation over the last three years from 2020 to 2022, which reasonably represents the average taxpayer’s ability to pay for government spending.