The ongoing federal government shutdown has a “tangible impact” on Florida tax revenues and capital investment, according to government watchdog Florida TaxWatch.
The independent non-profit group released a report today outlining the extended shutdown’s impact on the state economy. “What the Government Shutdown & Debt Ceiling Crisis Mean to Florida,” focused on key industries such as tourism. The group said closure of Florida National Parks and other federal facilities is having a detrimental effect on one of the state’s most vital industries.
“Small businesses that depend on visitors to the state’s parks have seen drops in income during this period,” the report says, “and some may go out of business because of it.”
Capital investment is also at risk due to higher uncertainty in the financial markets and lower consumer confidence levels. This results in reduced spending and investment, both necessary for economic growth and sustainability.
“Tourism, retail and Florida industries that rely heavily on capital investment will be the first to feel the effects of a government shutdown,” Dominic M. Calabro, President and CEO of Florida TaxWatch, said in a statement. “Since Florida collects 70 percent of its revenue through sales and use taxes, decreased purchasing activity will negatively impact the state budget.”
An extended shutdown is “a risky situation for Florida’s upcoming budget projections,” the group said. It will have enough influence to lower revenue estimates for the 2014-15 state budgets.
