Florida’s Lean Budget Stands in Stark Contrast to New York’s Bloated Spending
Governor Ron DeSantis has made a striking comparison between Florida and New York, highlighting the differences in population growth and budget management. According to DeSantis, Florida, which boasts a population of over 22.6 million, has a significantly smaller budget than New York, where the enacted budget for the coming fiscal year reaches $229 billion. Our state now has millions more residents than New York does, and yet their budget is more than 2X the size of the budget of the state of Florida! he stated, underscoring the imbalances in fiscal management between the two states.
Florida has enacted a $116.5 billion budget for fiscal year 2024-25, reflecting a commitment to fiscal restraint. DeSantis took significant action to achieve this by vetoing nearly $950 million in budget items—an impressive 86% of recent vetoes. His use of the line-item veto reflects a strategic approach to managing state finances, especially as Florida’s population continues to surge.
According to the U.S. Census Bureau, as of mid-2023, Florida’s population surpasses that of New York by over 3 million residents, which raises critical questions about budget efficiency and governance. While New York grapples with rising costs and population declines, Florida manages to maintain steady spending despite its growth. This flat-line budget, down less than 0.001%, speaks to the state’s commitment to balancing its financial responsibilities.
DeSantis has characterized New York’s approach as inherently flawed—“New York throws money at problems and still ends up with bad outcomes,” he said. His assertion holds weight, particularly in light of the population migrations favoring Florida, where individuals are increasingly relocating for better opportunities. In the last two years, Florida has led the nation in interstate migration, gaining more residents, while New York has experienced significant declines. Such shifts have real economic implications, with IRS data showing that New York lost over $24 billion in adjusted gross income to Florida in just one year.
Florida’s financial model relies heavily on sales taxes, which contribute more than 80% of its general revenue. While critics argue that this creates a regressive system, it also stabilizes revenue and stimulates economic activity. This consistent approach has helped shield Florida from the pitfalls of a volatile budget.
Critics, including former New Jersey Governor Chris Christie, argue that Florida’s spending has grown too rapidly, claiming a 30% increase over five years. However, a closer examination reveals a more complex picture. The state’s GDP increased by over 38% from 2017 to 2022, indicating substantial economic capacity to support growth. Moreover, a significant portion of Florida’s budget comes from federal funds—$37.9 billion in 2024—primarily from pandemic relief. Despite this reliance on temporary support, DeSantis remains focused on limiting long-term dependence on federal funding.
DeSantis aims to maintain a budget that prioritizes fiscal health without succumbing to the pressures of temporary financial assistance. He stated, You don’t build fiscal health on borrowed money, encapsulating his philosophy on responsible governance. The stricter budget structure in Florida, with 42% coming from general revenue and the remainder from dedicated trust funds and federal allocations, forces essential prioritization, ensuring careful allocation of resources.
In contrast, New York’s approach continues to involve substantial investment, despite a shrinking populace. The state remains committed to areas such as Medicaid and public services, even as critics point to Florida’s lower per capita spending. DeSantis argues against a quantity-over-quality mindset. Their roads aren’t better than ours. Their education’s not better than ours. So where is the money going? he challenged, raising valid concerns about New York’s spending efficacy.
Florida’s infrastructure consistently ranks among the best nationally, with assessments from the U.S. Department of Transportation recognizing its roads and bridge conditions. Education rankings also reflect positive outcomes, particularly in K-12 performance when evaluated for efficiency. In this regard, the resources allocated create more comprehensive benefits for residents.
Florida’s estimated reserves of $17 billion—15% of the total budget—position the state favorably for economic fluctuations. This reserve ratio is more than double that of most states, providing a solid financial cushion. New York, despite its larger budget, holds a rainy-day fund of under $10 billion, revealing a stark contrast in fiscal preparedness.
Even with substantial reserves, Florida confronts challenges stemming from its demographic shifts. An aging population and elevated in-migration place additional demands on healthcare and infrastructure. Nevertheless, Florida’s revenue model, primarily reliant on consumption, could become more precarious with rising consumer debt and decreasing savings among households. Budget planners remain prudent with conservative revenue projections, anticipating potential downturns.
DeSantis has proposed further shifts in tax policy to prioritize relief for Florida residents. He recently rejected a call for a $5 billion sales tax cut in favor of property tax reductions. I don’t want to give Canadians a tax cut, he expressed, emphasizing the need to focus on benefits for full-time residents over seasonal visitors. His strategy may involve utilizing reserves to alleviate local property tax burdens, potentially saving homeowners an estimated $1,000 annually.
This ideological shift reflects a broader commitment to fiscal conservatism, limiting unnecessary spending while ensuring robust support for residents. DeSantis aims to reinforce a tax structure that prioritizes full-time Floridians and fiscal stability, steering the state toward long-term resilience.
The numbers paint a striking contrast between the two states. Since 2010, Florida has welcomed 2.5 million new residents while consistently cutting taxes and holding substantial reserves. Conversely, New York has seen a net loss of over 500,000 residents, alongside an ever-expanding budget. People want to live in a place where the streets work, schools function, and the government doesn’t bleed them dry, DeSantis concluded, succinctly capturing the essence of Florida’s appeal and governance philosophy.
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