Government efficiency counts
Those of us in business know that it’s not just a matter of throwing money at an operational function or problem, but how that money is spent. While government doesn’t always operate that way, there are exceptions, and one of them is Florida government. A new study shows that Florida ranks third among states for its taxpayer return on investment (ROI).
An analysis by WalletHub shows Florida was behind only New Hampshire (#1) and South Dakota (#2) in the quality of government services received by residents compared to the total state and local taxes they pay. Within government services, Florida ranked highest in education (7th), followed by health (33rd), safety (35th), economy (36th) and infrastructure and pollution (38th). Hawaii ranked last among states for ROI, followed by California and North Dakota.
Not surprisingly, WalletHub’s Taxpayer Survey shows 60% of U.S. adults feel they pay too much in taxes and 88% don’t think that the government uses tax revenue wisely.
The lesson here? People in high-tax states don’t necessarily receive superior government services, nor do residents of low-tax states receive low-quality services. Proper control of spending, with metrics, brings efficiencies and often better service as a result.
So congratulations to our fiscal stewards in Florida’s state and local governments! We’re all winners as a result. Coupled with the move of 30-year mortgage rates dropping again (now 3.33%), there is some good news to celebrate this week.
Tax cuts passed by Florida lawmakers this year were signed into law last week by Governor DeSantis, bringing back the sales tax holidays on back-to-school supplies and hurricane preparedness items. The seven-day disaster preparedness tax holiday runs May 29-June 4 and the three-day back-to-school tax holiday runs August 7-9. They are among several tax changes in the bill (HB 7097), which was scaled back by lawmakers in early March as the COVID-19 outbreak emerged. The measures will reduce tax collections going into the general revenue fund by just under $37 million and reduce local government revenue by $10.8 million.
LMA Newsletter of 4-13-20
