The following information is applicable to the years prior to the current fiscal year. Like the other states of America, Florida also elects its lawmakers and public officials to manage its finances. Their role involves generating revenues and approving expenditures for state development projects. Since the state budgets depend entirely on the anticipated revenues and planned expenditures, creating the budgets can sometimes become a complex process. When the revenues fall short of expenditures, the taxes for Florida will automatically go high. It can also have other effects like cut services and money lending. The decisions made by states also influence the policy decisions at the national levels. The environmental and energy regulations, local-level issues, and the Affordable Care Act also gets impacted.
- The fiscal years 2014-2015 saw an increase in Floria’s spending by approximately $9 Billion. The reports showed the spending of $66.5 billion in 2014 and an estimated $75.5 billion in 2015. It was an 11.95% increase.
- In the fiscal year 2014, the sales taxes and gross receipts amounted to a total of 82.1% of the total tax revenue. The licenses contributed a total of 6% to the total state tax collections.
- In the fiscal year 2015, 26.2% of the state expenditures were used on education, while 32% of the expenditures were made for Medicaid.
Federal aid to the state budget
State governments also receive financial aid from the federal government for various joint programs that include education, transportation, sports, and Medicaid. The federal aid to the states accounted for 30% of Florida’s general revenues in 2013. The federal aid can vary for every state. Mississipi received $7.5 billion in federal aid in 2013, which was the highest federal aid in all states in the US. It accounted for 43% of the overall state revenue. North Dakota received $1.5 billion in 2013, which was only 19% and the lowest in all US states.
In 2013, Florida received $23.5 billion in federal aid, which was 31.5% of its total general revenue. Considering the population of the state is 2013, the federal aid was $1,202 per capita.
- The budget process of Florida is given as follows. The state operates based on an annual budget cycle.
- July is the month that starts a new fiscal year when the governor sends the budget instructions to the state agencies.
- In the month of October, the state agencies submit their reports with budget requests to the governor.
- The budget hearing for the next fiscal year takes place during the months of September and gets revised in January.
- In February, the governor submits their proposed budget to the state legislature. The legislature adopts a budget in the month of April or May, which becomes active at the beginning of July. The budget is passed based on voting. The majority is required for any changes in the budget.