With nearly 14 million people, Florida is the fourth most populous
state in the nation. Its population is more homogeneous than the
other study states, but is growing in diversity, with nearly 12
percent identified as Hispanic and 14 percent as African-American.
Florida has grown faster than the rest of the nation in each decade
since it became a territory in 1821. Between 1980 and 1990, the
population increased by 33 percent, moving it from the seventh
to the fourth largest state. Much of this growth was the result
of the immigration of retirees, foreign immigrants from Latin
and South America and young adults attracted by jobs generated
by the state's robust economy. Florida's population is expected
to continue growing during the 1990s, albeit at a slower rate
(growth is projected at 19 percent for the decade).
Florida is also distinct in its large temporary population, which
is comprised of tourists, visitors and part-time residents. These
temporary "residents" account for a large portion of the state's
economic activity in the form of jobs, income, and tax revenue.
They also place demands on transportation, the health care system,
law enforcement, and a number of other service areas. On the whole,
the state is sensitive to tax policies that shift burdens heavily
onto part-time residents or visitors.
Florida is experiencing rapid growth in its younger and older
populations. The state ranks first in the percentage of people
over age 65, and 23 percent of the state's population is 17 years
of age or younger. The rate of growth for each of these groups
is increasing faster than the state's population as a whole. While
Florida ranks last in the seven study states in terms of the percentage
of its population age 24 or younger (see Table 1), the state expects
considerable growth in this age group over the next decade. Of
the case study states, Florida ranks the lowest in the number
of new high school graduates per 1,000 population, and it has
the highest high school dropout rate. Florida also ranks low in
relation to the other case study states in the percentage of the
population that have baccalaureate, graduate or professional degrees.
Contextual Variables for Florida Compared to Selected States (Numbers in Parentheses Represent Rank Among the Seven Study States) |
||||
(1-2) |
(3-5) |
(6-7) |
Average |
|
| Population (in Millions) (1995) | ||||
| Per Capita Income (in Thousands) (1995) | ||||
| Potential Tax Revenue (1995-96)** | ||||
| New High School Graduates per 1,000 Population (1995-96)? | ||||
| Role of Private Higher Education§ | ||||
| Role of Governor? | ||||
| % of Population with Associate Degree (1990) | ||||
| % of Population with Baccalaureate Degree (1990) | ||||
| % of Population with Graduate or Professional Degree (1990) | ||||
| % of Population 24 Years Old or Younger (1995) | ||||
| % of Population that is Anglo (1990) | ||||
| % of Population Who Do Not Speak English in Home (1990) | ||||
| % of Population in Poverty (1994) | ||||
| High School Dropout Rate (1992-1994 Average) | ||||
| * This figure is expressed as an Index: National Average = 100.
Sources: Unless otherwise noted, data are drawn from Chronicle of Higher Education Almanac 43, no. 1 (September 1996), pp. 49-50. |
||||
As with many other states, Florida experienced a major recession
from late 1990 through early 1992. Throughout this recessionary
period, Florida's elected officials were faced with difficult
choices that resulted from slower than expected growth in state
revenues. Public opinion favored reducing spending rather than
increasing taxes. At the same time, the number of recipients qualifying
for Medicaid, AFDC, and food stamps was growing as a consequence
of high unemployment during the recession. Also, as a result of
the in-migration during the 1980s, children of baby boomers began
creating additional pressure for public school spending.
About 70 percent of the state's general fund revenue comes from
sales taxes. Florida's constitution prohibits the enactment of
a state income tax. The property tax is the most important revenue
source for local government in Florida, along with fees and charges.
Florida voters passed a property tax limitation in 1992 during
the depths of the recession. The voters' animosity toward property
taxes seems to have carried over into other areas, particularly
user fees, making it more difficult for state leaders to find
alternative revenue-generating strategies. While Florida is considered
one of the nation's "low" tax states, a study by Florida TaxWatch,
Inc., found that between 1977 and 1993, total taxes paid by Floridians
to federal, state and local governments grew 363 percent.
During more prosperous times, serious discussion of tax reform
was possible in the state. In 1988, Florida voters mandated the
formation of a Tax and Budget Reform Commission of the state's
top lawyers, business executives and political leaders. Its mission
was to examine the appropriateness of the state's tax structure,
determine the ability of the state and local governments to tax
and adequately fund government operations to the year 2000, and
identify revenue needs to the year 2000. It was given the authority
to propose constitutional amendments regarding tax and budget
reforms directly to the voters for approval, thereby bypassing
the Governor and the state Legislature. The commission's efforts
at budgetary reform (performance budgeting procedures and formats,
multiyear forecasting, etc.) were more successful than those of
tax reform. The commission was deeply divided on tax reform measures,
to the disappointment of many who hoped the commission would recommend
a state income tax and tax services. The recession in the early
1990s seems to have ended any serious discussion of tax reform
in the state.
The first two years of the 1990s were the worst for the Florida
economy. The biggest three spending areas of Florida's state government
are education, transportation, and health and welfare. Deep cuts
came from all three areas during the recession. A "hodge-podge"
of revenue enhancement strategies and spending cuts helped the
state make it through the recession. Automobile tax fees, fees
for deed transfers and marriage licenses, and tuition increases
at the state universities and community colleges were among the
sources of new revenue.
The recession in Florida began to abate in early 1993, although
the recovery has not been as sharp as past ones. Public sentiment
about new taxes, however, has not abated. In 1997 a constitutional
limitation in state revenue will take effect for the first time.
The legislation that defines this new limitation states, "Growth
in state revenues is limited to the average growth rate in Florida
personal income over the preceding five years. The limitation
is a single cap, applying to all state revenues-general revenues
and trust funds. Growth is measured over the previous year's maximum
revenues." Charles B. Reed, chancellor of the State University
System (SUS), predicted that money would be much tighter for higher
education as the limit on revenue growth takes effect and pressure
builds for increased spending on corrections and other state services.
Services and trade, the fastest growing industries in Florida, will generate over 60 percent of new jobs between 1991 and 2005. State officials predict that all but six of the projected fastest growing occupations will require a bachelor's degree.
A number of features make state government distinctive in Florida.
The first is the initiative process, which enables a specified
number of voters to directly propose a new law and place it on
the ballot at a subsequent election. If the proposed language
is approved by a majority of the voters, it becomes law. Observers
note that Florida may be headed down the same path as California
in terms of citizen-led initiatives. The number of constitutional
amendments focusing on fiscal restraint is increasing. A second
feature of the Florida political landscape is "sunshine": all
meetings where the public's business is conducted must be open
and publicly announced. A final feature of Florida's political
context is the introduction of eight-year term limits for the
Governor and members of the House and the Senate.
The Governor and Lieutenant Governor
The current Governor, Democrat Lawton Chiles, defeated the Republican
incumbent, Bob Martinez, in the 1990 election and was reelected by a narrow margin
in 1994, defeating Jeb Bush, son of President George Bush and
an influential Miami realtor. Florida is commonly referred to
as having a constitutionally "weak" Governor; the Governor can
propose budgets and veto single line-items, but the Governor's
cabinet is elected rather than appointed, thereby limiting his
ability to implement his political agenda. The current seven-member
cabinet is made up of three Republicans, one of whom is the Commissioner
of Education.
The Governor makes appointments to the Board of Regents of the
State University System and the boards of trustees for the local
community colleges. In addition, he appoints the members of the
Postsecondary Education Planning Commission (PEPC) and the State
Board of Community Colleges (SBCC).
Several of those interviewed described former Democratic Governor
Bob Graham as one of the most influential leaders in higher education
during the 1980s. Graham had the good fortune to work with a Legislature
of the same party, and he made higher education one of his top
issues for the state. The current chancellor for the University
System, Charles Reed, served as Graham's chief of staff. Since
the emergence of a more competitive political system in Florida,
the Governor's influence over major policy issues has weakened.
The role of the Lieutenant Governor in Florida, as in many other
states, is primarily one of a figurehead.
The State Legislature
The Appropriations Committee in the House and the Ways and Means
Committee in the Senate make most of the important decisions about
state priorities and spending, including higher education.
Although the Governor is responsible for developing a budget for
the state, many of those interviewed described his budget as "unrecognizable"
at the end of the process, or "ignored" by the Legislature altogether.
These descriptions are particularly apt since Florida has moved
toward a more competitive, two-party state. Prior to the development
of the state budget, the Governor, Lieutenant Governor, the cabinet,
and the legislative leaders agree on revenue estimates (called
"consensus estimates") for the state. All parties then work from
the same estimates in developing the budget. The Governor submits
his budget to the Legislature and the Legislature develops its
own budget. The leaders of the House and Senate agree on the "lump
sum" levels to be provided to different areas of state government
and each of the committees is responsible for setting its priorities
for spending within those levels. The conference process resolves
disagreement over spending priorities between the House and the
Senate. Once the conference committees reach agreement, the House
and Senate usually support the outcome and the budget goes to
the Governor for his approval.
The legislative appropriations process drives higher education
policy in Florida. The influence of the chairs of the Appropriations
and Education Committees with regard to higher education funding
and policy is significant. Committee chairs change as often as
every two years in the state, sometimes creating a confusing and
constantly changing array of priorities for higher education.
The Senate is seen as the "activist" body in formulating higher
education policies, focusing its attention in recent years on
performance-based budgeting, student credit hours, tuition, and
the "deregulation" of higher education. Long-time legislative
observers in the state agreed that the Senate's activism in higher
education is not the result of recent political changes in the Senate. As one
observer stated, "The Senate has always had a more contentious
relationship with the State University System."
In recent years the House has focused attention on how to accommodate
the growing demand for higher education in the state. House leaders
have paid particular attention to how many first-time-in-college
(FTIC) freshmen are permitted to enroll at the State University
System. One legislative observer stated that House members are
under political pressure to increase FTIC freshmen, particularly
at the University of Florida (UF) and Florida State University
(FSU), the two most "oversubscribed" institutions in the state.
Several administrators in the State University System (SUS) offices
and on campuses also mentioned the influence of the legislative
staff, particularly in the "activist" Senate. For most of the
professionals who work in higher education, the Senate's involvement
in matters of higher education policy is not seen as positive.
The Florida legislative staff often conduct independent studies
of higher education that can result in legislation being proposed.
The most recent example is a study on student credit hours, which
was conducted by the Legislature and which resulted in legislation
that capped the state-funded hours to earn a degree. (This initiative
is discussed in more detail below under "Issues for Higher Education.")
Many of those interviewed, particularly campus administrators, complained bitterly about the micromanagement of higher education by the Florida Legislature. One faculty member described legislative action as being focused around specific, fragmentary strategies, rather than deriving from an overall policy vision for higher education. A university administrator described how he was inundated with requests for information from the Legislature. Another said that even though the SUS budget comes as a lump sum, many provisos about expenditures are attached.
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