City Government Burden on Tallahassee Economy Growing

Tallahassee Reports has completed an analysis that indicates that the COT government spending has increased as a percentage of the Tallahassee’s Gross Domestic Product from 2005-2008. Gross Domestic Product (GDP) is the measure of all goods and services provided.

Using Bureau of Economic Analysis (BEA) data on Gross Domestic Product and City of Tallahassee expenditure data, the analysis indicates the COT GDP grew 11.6%, while COT government expenditures increased 33% from 2005 to 2008. (Government Expenditures includes all government funds.)

When isolating the General Fund expenditures, the analysis indicates a growth rate of 12.5 % over the period of 2005-2008, compared to the GDP growth rate of 11.6%.

The table below shows yearly government expenditures as a percentage of the GDP.

Year % GDP
2005 4.71%
2006 5.38%
2007 5.34%
2008 5.64%
2009 5.80% (EST)

The calculation for 2009 is an estimate taking into account the current recession and COT expenditure estimates for 2009.

The above table indicates an increasing percentage of resources being removed from the Tallahassee economy to address the needs of government.

3 Responses to "City Government Burden on Tallahassee Economy Growing"

  1. Mark Daniel – Does the City also lose money to Dominos’ or would it be better if there were a publicly owned pizza service in TLH? As delicious as government subsidized pizza sounds (and think about that fast delivery!) the answer is no, it would not be better and the City loses nothing by letting the market provide these types of services. It gains in the way of taxes & permits.

  2. Mark, the bad thing about the COT expenditures is that there is no real wealth generated. No businesses are started with that. I’d be in favor of any sort of competition to Comcast, but my experience with the City of Tallahassee utilities has not been positive.

  3. One good thing about Tallahassee expenditures is the money mostly is spent locally, with the exception of fuel costs.

    Do a comparison of the enormous drain on the economy—where the money is fully removed from Tallahassee–by such monopolies as Comcast (which has grown to become at least a $50,000,000 annual drain on the local economy). Using the standard 7X multiplier effect, Tallahassee alone loses $1/3 Billion from not having its own cable TV/Internet frachise. In some cases, government ought to grow.

    If you have access to the state tax reports from the cable company, the exact figures could be obtained and the horrendous loss to our economy could be measured. This would be a figure worth shouting from the rooftops.

    Keep up the good work! I look forward to every report.

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