About the Government Cost Savings Task Force

Florida's families, businesses, and government are currently struggling with unique and momentous economic challenges. Not only are we facing declining revenues and budget shortfalls, but also our state, and the nation as a whole, is enduring the fallout of an economic crisis that has caused a declining tax base, an increased need for government services, and forced reductions to funding for core government services. Continuous declines in our state’s general revenue have occurred over the past few years as a result of a frail housing market, a weakened tourism industry, and stagnant population growth. Simultaneously, the need for services has increased as Florida’s population ages and unemployment rates remain at record highs.

Background

Five years ago, Floridas General Revenue collections reached a record high, topping $27 billion for FY 2005‐06. The economy in Florida and around the nation was riding an economic wave that was flooding the state’s coffers with unprecedented tax revenues from every source. However, times have changed. In March 2010, the Legislature returned to Tallahassee to fill a more than $3 billion budget shortfall. This year’s budget situation is even more dire with a projected shortfall of more than $5 billion. These challenges, while daunting, also present opportunities for change that Floridians cannot afford to miss. And, as a community of leaders, the Floridians of today and tomorrow – including our children and grandchildren – will judge us accordingly.

Purpose

In the current fiscal and economic climate, government must operate better and more efficiently. Short‐ and long‐term cost‐savings solutions are needed now. It is the time for bold leadership, fiscal stewardship, and a change in the culture of government to one that encourages innovation, achieves cost‐savings, and embraces streamlining in order to improve efficiency. The Government Cost Savings Task Force has been convened to bring together leaders from across the state to meet this challenge. The efforts of this Task Force will help put Florida back on target for a healthy and growing economy. The Task Force will hone its focus to four of the most important cost‐saving areas in Florida: Pensions, Procurement, Criminal Justice Reform, and Healthcare.

The Challenge

In May 2010, the Florida Legislature passed a budget totaling $70.1 billion, which includes nearly a billion in assumed federal stimulus dollars. However, increased Medicaid spending and federal loan payments have left us vulnerable to another large budget deficit. Furthermore, hundreds of millions in raids from various state trust funds with little to no excess funds were transferred into the general revenue fund to help plug the large budget gap in the last year. With the imminent cessation of federal dollars, increased liabilities left to the state, and the potential of oil reaching our shores, Florida has been left in a precarious situation fraught with more difficult decisions.

The FY 2010‐11 Budget contains many reductions and cuts to core service programs in the state. Among them: community care for the elderly, at‐risk services for pregnant woman and infants, child abuse and neglect services, adoption subsidies, and independent living for children in foster homes. Such cuts to core services have dire consequences not only for the individual, but for the state itself, as it faces more crisis situations that incur higher costs in the long run. Without initiating smart ways to increase efficiency, Florida risks losing the important opportunity to wisely invest in its future and, ultimately, its economic wellbeing.

Solving these challenges requires action, innovation, and leadership – from both inside and outside of government. Florida can and must take the necessary strong steps to ensure that the maximum value of each taxpayer dollar is achieved. While trust funds are drained and federal stimulus dollars wane, we must innovate and collaborate to find short‐ and long‐term opportunities to improve efficiency, enhance productivity, and achieve real cost savings.