When the Beaches Close: Impact of COVID-19 upon County Fiscal Health in Florida
24 Pages Posted: 8 May 2020 Last revised: 11 May 2020
Date Written: May 6, 2020
The impact of COVID-19 and the use of shelter in place orders upon county-level government revenues and the future fiscal health of these municipalities is an ongoing concern for county government officials. Florida presents a unique case as the state relies on the sales tax revenue driven by in-state sales for over 60% of state revenue. This study presents findings on two measures of fiscal health (operating ratio and revenue loss per capita) under various scenarios of loss to county revenues through declines in general sales, local option sales, and fuel taxes. Findings suggest that counties within the panhandle in Florida may have to tap into reserves to make up for revenue loss.
Keywords: Florida; COVID-19; Sales Tax; Fiscal Health; County Government
JEL Classification: H71, H72, H83
Suggested Citation: Suggested Citation