Review of Federal Funding to Florida in Fiscal Year 2007 December 2008 Florida Legislative Committee on Intergovernmental Relations Florida Legislative Committee on Intergovernmental Relations (As of December 2008) Legislative Members Gubernatorial Appointees Senator Anthony Hill, Sr., Chair To Be Announced District 1 Representative James Frishe, Vice Chair District 54 Senator Nancy Detert District 23 Senator Mike Haridopolos District 26 Senator Frederica Wilson District 33 Representative Charles Chestnut, IV District 23 Representative Brad Drake District 5 Representative Mike Horner District 79 Alton L. “Rip” Colvin, Jr. - Executive Director What is the LCIR? The Florida Legislative Committee on Intergovernmental Relations (LCIR) is a legislative entity that facilitates the development of intergovernmental policies and practices. The Florida LCIR strives to improve coordination and cooperation among state agencies, local governments, and the federal government. What Issues Have Been Addressed by the LCIR? The LCIR completes several publications annually, including the Local Government Financial Information Handbook, Finalized Salaries of County Constitutional Officers and Elected School District Officials, and Intergovernmental Impact Report (Mandates and Measures Affecting Local Government Fiscal Capacity). In addition, the LCIR has addressed the following issues: o Municipal Incorporations and Annexation o State, Regional, and Local Planning o Impact Fees o Voting by Mail o Natural Disaster Preparedness, Response and Recovery o Economic Development o Local Government Financial Emergencies o Affordable Housing o Urban Infill & Infrastructure Capacity o Federal Funds to Florida Marina and Dock Permitting Federal/State Relations o o If you would like additional copies of this report or have comments or questions pertaining to the information contained herein, please contact the LCIR at (850) 488-9627. We welcome your input or suggestions. Our mailing address is: Florida LCIR c/o Legislative Mail Services Tallahassee, Florida 32399-1300 Homepage: http://www.floridalcir.gov Florida Legislative Committee on Intergovernmental Relations Executive Summary The purpose of this report is to provide the In 2007, federal direct expenditures to Florida Florida Legislature and other interested totaled $147 billion or $8,059 per capita, parties with a review and analysis of federal based on the state’s 2007 population estimate funding to Florida in fiscal year 2007 using of 18.3 million. Florida had the 4th largest data produced by the U.S. Bureau of the expenditure of all states, unchanged from Census. In particular, this report focuses on 2006. However, on a per capita basis, Florida federal grant expenditures to Florida’s state ranked 29th among the states, down from 25th and local governments. Florida’s historically in 2006. low per capita ranking among the states in the receipt of federal grants has been an area of Direct payments for individuals for retirement particular concern to policymakers. and disability constituted the largest category of federal direct expenditure. This category This report should be useful for making includes Social Security payments, federal statistical comparisons among states of retirement and disability payments, and various federal agencies’ funding programs. veterans’ benefits. Florida’s direct payments Additionally, the report should be instructive for retirement and disability totaled $55.6 to decision makers working to develop billion, or $3,044 per capita, and accounted consensus on priorities and strategies for for 38 percent of the state’s total federal direct increasing the state’s receipt of federal grants. expenditures. Florida had the 2nd largest expenditure total of the fifty states, unchanged This report begins with a review of the two from 2006, and ranked 7th on a per capita major classifications of federal financial basis, unchanged from 2006. assistance provided to states. These two classifications are: 1) federal direct Considering Florida’s large elderly and retiree expenditures and 2) other financial assistance. populations, these rankings should come as no surprise. Based on Census 2000 counts, Federal Direct Expenditures to Florida Florida’s elderly population, defined as age 65 years and over, totaled 2.8 million and Federal direct expenditures constitute actual accounted for 8 percent of the nation’s total funding outlays or obligations of the federal elderly population of 35 million. In Florida, government. These expenditures are reported the elderly constituted nearly 18 percent of the by the U.S. Bureau of the Census in five state’s total population. The elderly, as a categories: 1) direct payments for individuals percentage of the total state population, was for retirement and disability, 2) direct higher in Florida than in any other state. payments for individuals other than for retirement and disability, 3) grants, 4) The next largest category of federal direct procurement contracts, and 5) salaries & expenditure was direct payments for wages. individuals other than for retirement and disability. This category includes such items Review of Federal Funding to Florida in Fiscal Year 2007 i Florida Legislative Committee on Intergovernmental Relations as Medicare benefits, Excess Earned Income the dollar volume of federal guaranteed and Tax Credits, Unemployment Compensation, direct loans. Other financial assistance to and Food Stamp payments. Florida’s other Florida totaled $465 billion or $25,453 per direct payments totaled $42.6 billion, or capita. The state ranked first among the fifty $2,332 per capita, and accounted for 29 states in both total and per capita assistance percent of the state’s total federal direct due to the significant face value of flood expenditures. Florida had the 2nd largest insurance coverage provided to Florida, which expenditure total of the fifty states, unchanged constituted 97 percent of total other financial from 2006, and ranked 7th on a per capita assistance provided to the state by the federal basis, up from 8th in 2006. government. Federal grant obligations to Florida totaled The total amounts of other federal assistance $21.4 billion, or $1,173 per capita, and to Florida are summarized below. represented 15 percent of total federal direct expenditures to the state. Florida had the 4th Face Value of Insurance Coverage largest obligations total of the fifty states, up Total: $454 billion; Rank: 1st (1st in 2006) from 5th in 2006; however, the state ranked Per Capita: $24,862; Rank: 1st (1st in 2006) 49th on a per capita basis, down from 46th in 2006. Dollar Volume of Guaranteed Loans Total: $10.2 billion; Rank: 3rd (3rd in 2006) The value of procurement contract obligations Per Capita: $561; Rank: 32nd (41st in 2006) totaled $15.8 billion, or $863 per capita, and accounted for 11 percent of the state’s total Dollar Volume of Direct Loans federal direct expenditures. Florida had the 5th Total: $544 million; Rank: 15th (5th in 2006) largest obligations total of the fifty states, Per Capita: $30; Rank: 46th (18th in 2006) unchanged from 2006, and ranked 32nd on a per capita basis, also unchanged from 2006. How Florida Compares to Other Populous States The smallest category of federal direct expenditures to Florida was salaries and The U.S. Census Bureau reported that the wages. Such payments totaled $11.8 billion, federal direct expenditures (i.e., direct or $647 per capita, and accounted for 8 payments for individuals for retirement and percent of total federal direct expenditures to disability, direct payments for individuals the state. Florida had the 4th largest other than for retirement and disability, grants, expenditure total of the fifty states, unchanged procurement contracts, and salaries and from 2006; and the state ranked 33rd on a per wages) to the fifty states totaled $2.47 trillion capita basis, down from 32nd in 2006. in 2007, up from $2.37 trillion in 2006. The combined federal direct expenditures to the Other Financial Assistance to Florida seven most populous states of California, Texas, New York, Florida, Illinois, Other financial assistance consists of the face Pennsylvania, and Ohio, totaled $1.05 trillion value of federal insurance coverage as well as or 42 percent of the fifty states’ total. ii Review of Federal Funding to Florida in Fiscal Year 2007 Florida Legislative Committee on Intergovernmental Relations The total federal direct expenditures of the state ranked 45th on a per capita basis, up from seven most populous states are as follows. 47th in 2006. 1. California: $260 billion The grant funding received from six federal 2. Texas: $172 billion departments (i.e., Health and Human Services, 3. New York: $158 billion Transportation, Education, Housing and 4. Florida: $147 billion Urban Development, Agriculture, and 5. Pennsylvania: $117 billion Homeland Security) totaled $19.3 billion and 6. Ohio: $105 billion accounted for 96 percent of all grants 7. Illinois: $89 billion expenditures to Florida. A summary of these grant expenditures to Florida as well as some However, as illustrated below, the states’ of the more well-known program categories respective rankings change when controlling within these departments are listed below. for population differences. The per capita federal direct expenditures of these same Health and Human Services Grants seven states are as follows. Total: $11 billion; Rank: 5th (5th in 2006) Per Capita: $604; Rank: 46th (46th in 2006) 1. Pennsylvania: $9,423 (1st in 2006) 2. Ohio: