Florida in strong financial shape
- Florida has maintained its AAA score from Fitch Ratings, indicating a strong ability to meet financial obligations and the lowest expected default risk.
- The state’s revenues, primarily from sales tax receipts, are projected to grow based on economic and demographic estimations, despite a constitutional ban on a personal income tax.
- Florida’s creditworthiness is supported by expenditure flexibility, minimal debt and retiree benefit expenses, and a low long-term liability burden, according to the report.
Just a day after Fitch Ratings reaffirmed Florida’s triple-A financial status, state economists increased annual revenue estimates by nearly $3 billion. The revised revenue estimates will play a critical role in shaping the state’s fiscal year 2024-2025 budget, impacting funding for key programs like education, health care, and prisons.
The rating signifies the lowest anticipated default risk and is reserved for entities demonstrating a strong ability to honor financial obligations.
“Florida’s revenues are primarily driven by sales tax receipts, and have exhibited more economic sensitivity than other U.S. states on average,” reads the report. “Fitch anticipates Florida revenues will grow on a real basis based on the state’s economic and demographic fundamentals. The state exhibits very broad revenue-raising authority despite a constitutional restriction on the levy of a personal income tax.”
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