Florida's Economic Pillars

 

 

 

 

 


Florida’s quality of life has helped spur the state’s rapid growth over the past three decades. But the decline of key indicators in recent years suggests that Florida expansion is leveling off.
 
 

 

The quality of life gauge remains at a neutral position due to:

  • Housing crisis not yet over; prices down, foreclosures up
  • Fewer living in poverty or among working poor; modest gains in rural areas
  • Increase in cost of living (energy, food and insurance)

 

 

Florida’s future population estimates have recently been scaled back and public school enrollment has fallen short of expectations for three consecutive years in what state analysts say is a decline in new arrivals caused by a sagging economy and the departure of many families associated with the stalled construction and development industries.

The combination of Florida’s high foreclosure rate, an unemployment rate outstripping the national average, and deep state budget cuts are expected to contribute to a retrenching state economy through the first quarter of 2010. Recovery then is expected to take place slowly over the next year.

State forecasters, however, warn that even with the rebound, Florida’s economy may return only to the robust levels of the late 1990s. The sizzling job growth, real estate market, and government program expansion that marked the 2002 through 2006 period, are unlikely to be revisited because of changing market and demographic factors, they conclude.

A relatively bright spot in the economic decline is that the slowdown has tempered the high cost-of-living factors that earlier coursed through the state, particularly in Southeast Florida, Fort Myers, Orlando and Sarasota. Business and living costs remain low compared to many competing states, according to most analyses. Statewide and local crime rates have decreased significantly since the late 1990s, but have begun to show an uptick in many urban areas.

Florida’s health and wellness remain a concern. Florida ranks among the bottom quartile of states for employer health coverage, access to health professionals and the number of uninsured low-income children.

According to Families USA, a national non-profit group, more than one in six Florida children is uninsured, ranking the state third in the nation in the number of uninsured. Over the past three years, the number of children without health coverage has climbed by 11 percent to 797,000 kids. Forecasters expect that number likely to grow because of the financial crisis.

With the economic slowdown, Florida may struggle to implement the “pay as you grow” approach to funding transportation, schools and water, central provisions of the state’s 2005 growth management laws. Similarly, state and local budget cuts could hurt affordable housing, arts, culture, historic preservation and other programs that are seen as important to quality of life.