TALLAHASSEE, Fla. – A recent study by George Mason University’s Mercatus Center reviewed the fiscal health of the United States, breaking down each state individually for comparison across several standardized metrics. In this month’s Economic Commentary, Florida TaxWatch analyzed the study and provided analysis focused on our state.
“Florida’s strong constitutional fiscal safeguards as well as our leaders have established a strong foundation for our financial stability and prosperity as a state,” said Dominic M. Calabro, president and CEO of Florida TaxWatch. “By ensuring we have the resources for reserves and long-term stability, our state’s leaders can more safely invest in the infrastructure and areas we need to continue growth in the future.”
Florida ranked among the nation’s best in fiscal strength. Among the findings, with Florida’s rank among the states in parentheses:
• Cash solvency (2nd)
• Budget solvency (5th)
• Long-run solvency (31st)
• Service-level solvency (4th)
• Trust fund solvency (11th)
Florida’s fiscal standing grants the state the advantage of financial freedom moving forward. Due to the fact that Florida has been paying down long-term debt and retains a modest debt burden, Florida lawmakers can continue to invest in the state and in new and emerging sectors that can make the state a national leader in areas like manufacturing. While legislators must always be on the lookout for potential problems, as it stands today, Florida’s fiscal health is relatively strong and is poised for growth.