A Florida TaxWatch economic report
What the Government Shutdown & Debt Ceiling Crisis Mean to Florida
Importance of Capital Investment to Economy
Investment fuels economic growth. However, current uncertainty is holding back investment. The state of Florida, like most other states, has experienced sluggish growth since the end of the Great Recession. The uncertainty of the current situation is likely to further hinder this growth, and could potentially return the U.S. to a recession if necessary political action is not taken in a timely manner.
The general downside of the shutdown and debt ceiling crisis is that it may cause a drop in revenue collections, a risky situation for Florida’s upcoming budget projections.
The most recent Revenue Estimating Conference has projected an $845.7 million surplus for FY2014-15 (some from recurring and some from non-recurring sources), even when $1 billion in reserves are included.
The most recent Revenue Estimating Conference has projected an $845.7 million surplus for FY2014-15 (some from recurring and some from non-recurring sources), even when $1 billion in reserves are included. The loss of revenue from an extended shutdown could reduce these estimates.
Although much of the public focus has been on the infighting and political theater in Washington, the federal shutdown and debt ceiling crisis have negatively affected Florida’s economy, and the longer the shutdown is in effect, the more damage will be done here at home. The global impact of the United States defaulting on its debt would be immense, and would certainly hurt the Sunshine State. No matter what the solution politically, these issues are not limited to Washington, and the impact to Florida and the other states must be a consideration moving forward.
Snorkeling in Biscayne National Park, also closed due to the shutdown