Public Finance

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Go to the following page: https://floridataxwatch.org/Research/Budget-Hub

and download the 2020 Budget Guide. Answer the following questions.

1. Notice the “About the Florida Budget” paragraph on the first page.
What are some economic benefits to the constitutional requirement that
the state cannot run a budget deficit? What are some economic challenges
created by this requirement?

2. Look at the “Appropriations by Program Area” graph on page 2. What
program area receives the largest percent of state funding? Why do you
think this area receives the most funding?

4. Choose one of the program areas (Education, Human Services,
Criminal Justice, Judicial Branch, Environment, Transportation &
Economic Development, or General Government). Read the budget highlights
for that section. How could government spending in this area increase
economic growth? For example, if the government funded a program to
build roads, it would create jobs (and therefore income) for the people
hired to build the roads, and the creation of the roads could reduce
transportation costs for businesses.

5. For your chosen budget area: What is the per capita spending in
this area? (Hint: According to the US Census, Florida’s population in
2019 was 21,477,737. Calculate per capita spending using this formula: Budget amount ÷21,477,737.) Is this level of spending more or less than what you would expect?

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