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Florida Government Spending Report
by Michael Hodges

- notice > data update in process -

- a chapter of the Grandfather Economic Reports -

florida map

florida flag

The Expansion of Florida's State & Local Government
is eating up the State's Private Sector

Each generation hopes their children will have MORE opportunity than all prior generations. I am concerned about the economic future of our youth.

The Grandfather Economic Report is a series of picture reports of threats to the economic future of families and their children, compared to prior generations - on family incomes, debt, government spending, productivity, regulation, education quality, inflation, voter turn-out trends, health-care, national security, energy, and trust.

You are now at the chapter on Florida Government Spending trends. This is a private study presented as a public service to enhance awareness of trends in Florida government spending, compared to the past.

Historic data suggests a reduction of more than 45% in state & local government spending and employee head-counts - - - to return the relative size of the private sector to what it has been, and thereby enhance the economic future for our younger generation.

2 Great Questions - - with answers

QUESTION: As the population of a state grows, should not state and local government become more efficient and productive such that the number of government employees increases at a slower rate than population growth? One would hope so, in the interest of an expanded free-market economy with limited government as envisioned by our nation's founding forefathers.

ANSWER: Not in Florida. From 1957 to 2006, Florida's population increased 302%, but the number of state government employees increased 517% and local govt. employees increased 604% - twice as fast - producing a total government headcount excess to prior ratio of 357,000 employees. Yes, there are more social security receipents on the back of each citizen than ever before, but here you see there are also twice as many state & local government employees in Florida on the backs of that state's citizens than before.

QUESTION #2: As the population grows and the economy expands in size, should not government prove its efficiency and productivity such that its spending ratios to gross state product decline over time? One would hope so.

ANSWER #2: Not in Florida. From 1947 to 1963 to 2002, Florida increased its spending from 6% of the economy (GSP) to 19%. That's a negative productivity of 200%. And that's excessive spending of over $30 billion in 2000 alone.

How about more recently? Well, in the 14 years 1986-2000 Florida's population increased 38%, BUT state direct (excl. transfers) government spending increased several factors faster at 262% while local government spending increased 156%.


Government increases its share of the Florida economy

causing the Private Sector's share to decline

Showing Florida's Economy as a Pie Chart

  • Two dramatic charts follow. They show the state's private sector has been reduced in its share of Florida's economic pie from 78% of the total to a 58% share.
  • This drop is because Florida's state & local government spending zoomed from a 6% share of the economy in 1947 to over 19% by 2003 - - a 217% increase in said share.
  • And, this dropped further because the federal government's spending share of the economy increased from a 16% share to a 23% share.

1947 economic pie

The chart at the left represents Florida's economic pie for 1947, showing the private sector's total share was 78% of the economy - the blue slice of the pie.

It also shows that the government sectors control the other 22% of the economy:

1. federal government's share of 16% (yellow pie slice), and
2. Florida's state & local governments' share of 6% of the economy (brown pie slice).

As we progress to the next two charts, note how the private sector's blue slice becomes smaller and smaller - - due to expansion of all government sectors.

1991 economic pie

This chart is the economic pie for 2000.

Here the blue slice, the private sector's share of the economic pie, has been reduced to 58% - - a drop of 20 points from 1947 chart ).

2000 vs. 1947 shows Florida's state and local government share increased from 6% to 19%, or 13 points - - a 216% increase, showing Florida governments dramatically increased their share of the economy.

Also shown is the federal government share increased to 23% of the economy, from a prior share of 16%.

From chart 1947 to chart 2000, the private sector's share dropped 20 points, as the state's spending share zoomed upward 13 points for a 216% increase in its share - - and, the federal share jumped 7 points for a 44% increase in share. (note > the 2003 federal govt. share increased to 26% of the economy, up another 3 points. To place this in historic perspective, prior to 1930 the federal government's share was about 3% of the economy).

Interesting that the rate of increase of state & local government growing faster than the economy even out-stripped the expansion of the federal government's share during this period.

You are reading the opening home page of the Florida Spending Report.
An index of sections with data graphics follows.

Florida Picture:

Sections of Florida Report:

Several Related Link Reports:

National Picture:

Above is the Florida Report - - which is a chapter of the Grandfather Economic Report series. The visitor is invited to see what similar data looks like on a national scale to help develop perspective of the bigger picture.
The Grandfather Economic Report is a series of mini-picture reports of national economic data showing threats to families and the younger generation, compared to prior generations. [the web site of the national report home page is > http://grandfather-economic-report.com/ ] Easy-to-understand chapters listed on the home page include > > federal and state/local government spending, debt, international trade, foreign exchange, productivity, family incomes, inflation, education, social security, regulatory costs, private sector, national security, energy, health-care. Each chapter includes color data trend graphics seen by very few.

The above home page contains a table of contents of all national chapters of the Grandfather Economic Report. Following are a few of the chapters:

Nation-wide Summary Report - - Here you will find Summary Charts of the Grandfather Economic Report series  - - showing 5 core threats (government size, education quality, debt, foreign dependence and energy)

SUGGESTION >

Now that you have scanned this home page of the Florida Government Spending report, go back above and read each section - - where you will find color data charts on spending, headcounts, etc.


OR - GO to the Email to Michael Hodges
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The Grandfather Economic Report series is the intellectual property of its author; all rights reserved under Copyright Conventions. Permission to redistribute all or part of this series for non commercial purposes is granted by the author, provided the associated web page address is included and full credit given to the Grandfather Economic Report and the author, Michael Hodges. Notice appreciated via email.