CAPE CANAVERAL, Fla. — Florida Gov. Ron DeSantis made a stop in Cape Canaveral last week to announce some sales tax holidays - periods when Floridians can purchase particular retail goods without paying sales tax.
Before making the announcement, DeSantis touted Florida's per capita debt related to the entire country. "Since I've been governor, we have the lowest per capita state debt in the United States," he said.
THE QUESTION
Does Florida have the lowest per capita debt of any state in the U.S.?
THE SOURCES
Dr. Nevena Trajkov, Jacksonville University
THE ANSWER
WHAT WE FOUND
This claim is true -- but it's not necessarily good news for the average Floridian.
The governor's office cites the Washington, D.C.-based think tank Tax Foundation as its source behind DeSantis' claim that Florida has the lowest per capita debt in the U.S. While the Tax Foundation has the Sunshine State at No. 50 in per capita debt, Florida Tax Watch, says the state is No. 47. Florida Tax Watch is an independent, nonpartisan, nonprofit taxpayer research institute and government watchdog, according to its website.
Dr. Nevena Trajkov, a political science professor at Jacksonville University, says her calculations put Florida closer to Florida Tax Watch's projections. The conclusion, she says, is Florida has one of the lowest per capita debt ratios in the U.S. While this appears to be a good thing, Trajkov said the ranking comes at the expense of Floridians.
She said as the state lowers its debt, local governments and households see their debt increase.
"The ranking gives a false picture of what goes on in Florida," Trajkov told First Coast News. The ranking "means the state isn’t spending. They’re tightening the reins, giving fewer dollars to citizens. ... There have been cuts in revenue to local organizations and the state isn't doing much to alleviate that new burden."
Florida Tax Watch makes note of the impact the state's low debt has on local governments. "While Florida’s total state debt per capita ranks 47th out of the 50 states, Florida per capita local debt ranks 19th," according to Florida Tax Watch.
The situation is even more dire for Florida households. According to National Business Capital, Florida makes the Top 10 - coming in at No. 6 - in "States Most Impacted by Household Debt."
“You can have a real crisis on your hands and say ‘We have the lowest – one of the lowest – per capita state debt in the U.S.,' but how does that translate to the Floridian? Not much. This is concerning for Florida, particularly the household debt and how it skyrocketed," Trajkov said.
"People can’t find adequate housing and the state isn’t doing much to alleviate that new burden," she added. "If they can afford to buy a home, can they afford the insurance?" Trajkov added that rising home insurance rates in Florida is a major crisis. "People are forgoing buying homes because they can’t afford the insurance. Those who own homes are incurring more debt because of high insurance prices."
