Review of Federal Funding to Florida - Office of Economic ...

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Office of Economic and Demographic Research Education Grants Total: $2.2 billion; Rank: 5 th (4 th in 2008) Per Capita: $119; Rank: 40 th (37 th in 2008) • Office of Elementary and Secondary Education • Office of Special Education and Rehabilitative Services • Office of Vocational and Adult Education Transportation Grants Total: $2.0 billion; Rank: 6 th (4 th in 2008) Per Capita: $110; Rank: 50 th (37 th in 2008) • Federal Aviation Administration • Federal Highway Administration • Federal Transit Administration Housing & Urban Development Grants Total: $1.7 billion; Rank: 6 th (8 th in 2008) Per Capita: $93; Rank: 32 nd (30 th in 2008) • Community Planning and Development • Housing Programs Agriculture Grants Total: $1.4 billion; Rank: 4 th (4 th in 2008) Per Capita: $77; Rank: 39 th (40 th in 2008) • Food and Nutrition Services • National Institute of Food and Agriculture • Rural Development Activities Homeland Security Grants Total: $910 million; Rank: 5 th (3 rd in 2008) Per Capita: $49; Rank: 26 th (18 th in 2008) • Domestic Preparedness and Antiterrorism Programs • Federal Emergency Management Agency Federal Grants to Florida in Recent Years The following table illustrates the increases in federal grant expenditures to Florida since 1996. Federal Grant Expenditures to Florida FY Total % Chg. Per Capita 2009 $22.7 billion 9.8% $1,224 2008 $20.7 billion 3.1% $1,127 2007 $20.0 billion 4.8% $1,098 2006 $19.1 billion 0.4% $1,059 2005 $19.0 billion 4.8% $1,072 2004 $18.2 billion 5.3% $1,045 2003 $17.3 billion 14.7% $1,014 2002 $15.0 billion 13.1% $900 2001 $13.3 billion 13.9% $811 2000 $11.7 billion 8.0% $731 1999 $10.8 billion 10.8% $715 1998 $9.8 billion 14.7% $654 1997 $8.5 billion 0.7% $580 1996 $8.4 billion - $586 Florida’s per capita federal grant expenditure increased from $586 in 1996 to $1,224 in 2009. However, in spite of the increase in grant expenditures during this time period, the state’s per capita rankings remained in the lowest quintile. Conclusion Although this report provides an overview of the various types of federal funding to Florida, the focus is on federal grant expenditures. Despite Florida’s low per capita federal grants expenditure, 48 th in 2009, federal assistance to our state, primarily in the form of grant funding, accounted for 35 percent of state government’s total direct revenue during the 2008-09 fiscal year, according to the Florida iv Review of Federal Funding to Florida in Fiscal Year 2009
Office of Economic and Demographic Research Consensus Estimating Conference’s Long Term Revenue Analysis (Fall 2009). As the result of lower than normal state revenue collections and the infusion of additional grant funding via the federal stimulus, the share of federal assistance, as a percentage of Florida’s total direct revenues, has increased in recent years. Numerous reasons exist for Florida’s low per capita federal grants funding; however, three likely explanations are of particular significance. First, many funding formulas are based on outdated population figures or other factors that do not reflect the state’s rapid growth in recent decades. Congressional support to revise funding formula inequities may be difficult to obtain if other states stand to lose federal funds under revised formulas that benefit Florida. Second, small state minimums in formula allocations disadvantage more populous states like Florida. Third, Florida may not be aggressively pursuing all federal grant opportunities. Additional explanations include a lack of sufficient state matching funds, federal “strings” or policy requirements serving as conditions for receipt of federal grants funding, and cutbacks in federal funding. In 2009, Florida’s per capita federal grants expenditure was $513 less than the national average (i.e., the national per capita grants expenditure). Historically, Florida’s per capita grants expenditures have been consistently less than the respective national average, as illustrated below. Comparison of Florida and National Per Capita Federal Grants Expenditures FY Florida National Difference 2009 $1,224 $1,737 ($513) Review of Federal Funding to Florida in Fiscal Year 2009 2008 $1,127 $1,480 ($353) 2007 $1,098 $1,429 ($331) 2006 $1,059 $1,354 ($295) 2005 $1,072 $1,329 ($257) 2004 $1,045 $1,357 ($312) 2003 $1,014 $1,294 ($280) 2002 $900 $1,222 ($322) 2001 $811 $1,103 ($292) 2000 $731 $1,008 ($278) 1999 $715 $975 ($260) 1998 $654 $910 ($256) 1997 $580 $830 ($249) 1996 $586 $823 ($237) By taking Florida’s expenditure difference in a given year and multiplying it by the respective statewide population, it is possible to calculate the amount of additional federal grant funding that would have been received by Florida had the state’s per capita grants expenditures equaled the national average. In 2009, this figure would have equaled $9.5 billion. If the state’s per capita grants expenditure had equaled just the national average in each year during the 1996 to 2009 time period, then Florida would have received $71.5 billion more in federal grant funding, as illustrated below. Additional Grant Funding to FL If State’s Per Capita Expenditure Equaled National Average FY Difference Population Funding 2009 ($513) 18,537,969 $9.5 billion 2008 ($353) 18,328,340 $6.5 billion 2007 ($331) 18,251,243 $6.0 billion 2006 ($295) 18,057,508 $5.3 billion 2005 ($257) 17,768,191 $4.6 billion 2004 ($312) 17,385,430 $5.4 billion 2003 ($280) 17,019,068 $4.8 billion 2002 ($322) 16,713,149 $5.4 billion 2001 ($292) 16,396,515 $4.8 billion 2000 ($278) 15,982,378 $4.4 billion 1999 ($260) 15,111,244 $3.9 billion 1998 ($256) 14,915,980 $3.8 billion 1997 ($249) 14,653,945 $3.7 billion 1996 ($237) 14,399,985 $3.4 billion Total $71.5 billion v
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