Despite Florida’s economic recovery, almost half of Florida households have been left behind. These households struggle to survive on income less than that required for the most basic family survival budget. Fundamental changes in Florida’s job market and economy point to underlying weaknesses in the state’s jobs and growth strategy, offering some explanation as to why so many families are left behind. Lawmakers should stop relying on ineffective tax cuts and business subsidy policies and instead adopt commonsense policies that enable Floridians to earn their prosperity.
The 2017 ALICE report, a publication of United Way of Florida, provides a comprehensive review of the economic and social realities facing Floridians who are working and earning income above the poverty line but cannot afford basic costs of living. These households are called “ALICE,” which stands for Asset Limited Income Constrained Employed. The report is based on data for the period 2007 to 2015.
Florida’s economy has largely recovered from the recession, yet far too many Floridians are still struggling to pay for basic costs of living. Of Florida’s 7.5 million households, 44 percent cannot afford to pay for food, health care, housing, child care and transportation. This figure includes the 14.5 percent of households below the federal poverty level (FPL) of $24,250. The ALICE families constitute an additional 29.5 percent of Florida households. ALICE households earn an income above the FPL, but below the ALICE household survival budget level (the actual cost of necessities in Florida) adjusted for differences in counties and household types. In 2015, the minimum income required to pay for basic needs ranged from $44,028 to $68,952 for a family of four, depending on the family’s county of residence.
Additionally, the ALICE report highlights fundamental shifts in the state’s economy that are key to understanding why so many families are left behind and the dangers of relying on ineffective policies to create jobs and grow the economy. Florida’s economic recovery has been lopsided and dominated by low-paying jobs, according to the report. Also, there was a notable shift toward more job losses among Florida small businesses, largely due to a lack of resources. These shifts are not captured by commonly used economic indicators, so they are not often highlighted or part of the annual budget and policy debates. However, these shifts provide information important to inform lawmakers’ spending decisions regarding priorities such as reducing poverty, creating quality jobs and diversifying the state’s economy.
Florida’s economy is service based; its recovery has been driven by growth in service sector industries. Four of Florida’s top service industries recorded double-digit growth in terms of their contribution to GDP between 2007 and 2015. Education and health services grew the most by 19 percent, according to the report. Likewise, leisure and hospitality industries grew by 16 percent, the second highest among all industries.
Conversely, non-service industries largely declined. The manufacturing and construction industries shrank by 10 percent and 24 percent, respectively, in their contribution to GDP between 2007 and 2015. The agriculture industry already contributes the least to GDP.
Most new jobs created by Florida service industries pay low wages. In 2015, 19 of the 20 most common service sector jobs paid less than the level required for the ALICE household survival budget, according to the report. The decline in non-service sector activities relative to GDP, particularly in manufacturing, suggests non-service sectors are less likely to be drivers of economic growth or the creation of high-paying jobs in the future. Service sectors with high paying jobs employ a small share of ALICE workers.
The decline of non-service industries relative to GDP suggests Florida’s economy is less diversified than before the crisis, making it more vulnerable to future crises. Efforts to diversify the state’s economy after the recession have focused on tax cuts policies and subsidies for selected industries. The above findings suggest these policies have failed to diversify the state’s economy.
In addition, the increased dependency on service industries make the state’s budget more vulnerable in the future. Florida’s budget depends primarily on sales and use taxes, most of which are generated within the service sector, to fund core public services. In the Fiscal Year 2008-09, Florida lost more than $3 billion in tax revenue, over the previous year. It took four years after the recession ended for state revenues to return to pre-recession levels. The loss of revenues resulted in budget cuts to vital programs like education and health care that affected millions of Florida families. When public services are lost to budget cuts and are not completely restored in the economy’s recovery, the state shifts the burden to families to pay more out of pocket for services.
Labor markets are continuously changing in terms of workers’ participation and type of work. In Florida, there is a rise of short-term jobs and project work, also called freelance or contingent labor. Low wage jobs, mostly in the service sectors, are increasingly shifting away from being full-time jobs that include benefits to part-time jobs that have no benefits. In addition, freelance and contingent labor work is without benefits or traditional work hours, according to the report.
Florida’s job market is not as robust as it seems. While the state unemployment rate was 5.4 percent in 2015, its underemployment rate was 11.5 percent. The underemployment rate includes unemployed workers plus those workers who are high-skilled, but working in low-paying jobs, and part-time workers who would prefer to be full-time.
While the number of jobs created is important, the quality of jobs matters. Permanent and full-time jobs with high-wages and good benefits enable households to pay for necessities, invest in their future and save for retirement. Conversely, gigs, part-time and contingent work with low-wages and less benefits are high risk jobs. Workers relying on these types of jobs are one illness, car accident or mortgage payment away from falling into poverty, indebtedness or homelessness.
Moreover, contingent workers are more likely to experience job instability, have worker-safety issues, and feel less satisfied with their work arrangement and benefits, according to the report. These make it more difficult for the state to end poverty, increase household self-sufficiency and reduce the number of people depending on public assistance programs. In fact, contingent work can lead to greater dependence on public support programs because of low wages and benefits.
Generally, job loss in small businesses is high. However, during the recession and continuing through 2015, there has been a shift toward higher levels of job loss in Florida’s small business sector, notes the report. Small businesses cannot quickly adjust to market changes and do not have the resources to fall back on during lean times; accordingly, many small businesses are forced to downsize or close, resulting in high levels of job losses. In the second quarter of 2014, 87 percent of all ventures created in Florida closed, moved to another state or merged with another business.
Higher than usual job losses in the small business sector suggests current policies aimed at helping small businesses grow, create and retain good paying jobs are poorly targeted and ineffective. Since the recession, lawmakers have made tax cuts and subsidies for businesses the centerpiece of the state’s jobs and growth strategy. Annual tax cuts and subsidies are pitched as support for small businesses, but benefit large businesses and corporations. Most small business do not benefit from tax cuts because they generally have little taxable income. Most business subsidies target businesses with more than 1,000 employees, while more than 98 percent of employers in Florida are small businesses with less than 500 employees. Thus, small businesses received little to no direct benefit from state spending on tax cuts and business subsidies. Further, tax cuts and subsidies for large businesses stifle competition, making it harder for small businesses to compete.
While Florida’s economy has recovered from the crisis, 44 percent of Florida households cannot afford to pay for necessities. Florida’s recovery has been driven by growth in service sectors while non-service sectors continue to shrink, making the state’s economy and budget more vulnerable to future financial crises. While job growth after the recession was positive, most jobs created are low-paying jobs with less job security and fewer benefits. ALICE households surviving on low-paying jobs face high risk of falling into poverty, indebtedness or homelessness. Small businesses, which lead job creation in the state, experienced higher than usual job losses due to the lack of resources. These findings suggest that state policies aimed at growing and diversifying the state economy and promoting job creation are poorly targeted and ineffective.
Lawmakers should increase public investment in core services such as affordable healthcare, transportation, housing and childcare, which would ease the burden on families struggling to make ends meet. The state can free up millions of dollars to invest in these priorities by abandoning ineffective tax breaks and business subsidies. Additionally, Florida lawmakers should reform the state’s jobs and growth strategy to better support new sectors, small businesses and the creation of quality jobs. This is important for making Florida’s economy more resilient to future crises.
 Ibid, p.32.
 Supra Note 1. p.31.
 Ibid, p.35.
 Ibid, p.36.
 Ibid, p.33.
American Rescue Plan Act Changes. The American Rescue Plan Act of 2021 extended PEUC and PUA benefits through the week ending September 6, 2021. It also increased the maximum duration of PEUC benefits ($300 a week) to 53 weeks and the maximum duration of PUA to 79 weeks. Although PEUC and PUA did not end until September 6, 2021, Florida withdrew from the Federal Pandemic Unemployment Compensation Program (FPUC) effective June 26, 2021. FPUC provided persons who were out of work due to COVID-19 with an additional $300 a week in unemployment insurance.
Reemployment Assistance weeks reverted to 12 effective January 1, 2022. DEO determines the maximum number of weeks available to RA claimants based on a statutory formula that looks at the average unemployment rate for the most recent third calendar year quarter (i.e., July, August, and September). Based on the downturn in unemployment, the maximum number of weeks for RA reverted to 12 effective January 1, 2022.
RA work-search and work registration requirements reinstated on May 30, 2021. Persons filing an application for RA benefits beginning March 15, 2020, are not required to complete work registration in Employ Florida through May 29, 2021. In addition, work search requirements for individuals requesting benefits for the weeks beginning March 15, 2020, were also reinstated on May 30, 2021.
Mobile app deployed. DEO has deployed a mobile app for RA applications.
DEO announces extended benefits. DEO announced implementation of Extended Benefits (EB).
Resources and guidance. For a list of resources and guidance from the United States Department of Labor on unemployment insurance and COVID-19, go here.
For DEO’s “Reemployment Assistance Frequently Asked Questions and Additional Resources,” updated 12/30/2020, go here.
For DEO’s latest claims data, go here.
DCF opens offices. DCF has reopened its brick-and-mortar storefronts, which were previously closed due to coronavirus.
DCF adds call center numbers. DCF has added a call center number for Monday through Friday, from 7 a.m. to 6 p.m. Call center numbers now include 850-300-4323, 866-762-2237, or TTY 1-800-955-8771.
Certification periods extended by 6 months only through August 2020. Certification periods for cash, food and medical assistance were extended by 6 months for individuals and families scheduled to recertify in April through August 2020. FNS’ approval of the SNAP extension for August is here. However, effective September 1, 2020, SNAP, TANF and Medicaid recertifications have been reinstated, although DCF says that no one will lose Medicaid due to recertification.
DCF allows phone interviews. Phone interviews are now being used for TANF cash and SNAP food assistance.
Mandatory work requirements suspended only through May 2021. Under a directive from Governor DeSantis to waive work requirements for safety net programs, DCF waived work requirements for individuals participating in the Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) through May 2021. To do this, DCF explains that it partnered with the Department of Economic Opportunity to apply “good cause” statewide for TANF and SNAP recipients who would otherwise be subject to participation in mandatory work requirements as a condition of receiving those benefits. Through May 2021, persons who were sanctioned in the past due to work requirements will be able to reapply and participate in SNAP or TANF again.
Work requirements were reinstated effective June 1, 2021.
Emergency allotments (EA) ended. DCF automatically supplemented SNAP allotments of current recipients up to the maximum for a household’s size for July 2021. However, EA was discontinued beginning August 1, 2021.
The SNAP benefits increase by 15 percent ended in October 2021. Floridians who participate in SNAP to put food on the table will receive a temporary 15 percent supplement to SNAP under COVID relief passed by Congress and extended by the American Rescue Plan Act through September 2021.
FNS permanently increases SNAP through revamp of the Thrifty Food Plan. Effective October 2021, FNS has mandated a permanent increase to SNAP through a revamp of the Thrifty Food Plan. DCF says that the increase amounts to about 6% for Floridians.
Time limits suspended. SNAP time limits are suspended during the COVID-19 public health emergency. No one in Florida should be barred from SNAP due to time limits, even if they exhausted their time limit in the past.
Florida granted waiver to allow families to purchase groceries online. DCF has been granted a federal waiver to permit the State of Florida to launch a pilot project statewide effective April 21, 2020, that allows families to purchase groceries online with their Electronic Benefit Transfer (EBT) card instead of going into stores.
No Medicaid terminations from March 2020 through the end of the federal public health emergency. The national public health emergency has existed since January 27, 2020 and has been renewed by the Secretary of the U.S. Department of Health & Human Services in 90-day increments since that time. The most recent renewal is effective January 16, 2022.
Redetermination/recertification times are reinstated. As of October 1, 2020 AHCA's website is alerting recipients that the Department of Children and Families is now mailing letters for case reviews to check if a household is still eligible for Medicaid and/or Medically Needy. AHCA is urging people receiving these letters to take steps now to re-apply. But note, Medicaid coverage will not end during the COVID-19 Public Health Emergency. In January 2021 DCF conducted one-year “automated renewals” for people whose sole income is social security and SSI and are enrolled in an SSI-related Medicaid program (e.g., MEDS/AD, Medically Needy and Medicare Savings Programs). People getting VA income were not included in the automated renewal.
Extended application time. Effective with applications filed in February 2020, the time for submitting documentation required to process an application is extended for 120 days from the date of the application and eligibility will still be effective the first day of the month the application was received. Effective July 1, 2021, this policy has been rescinded. Medicaid applications submitted on or after July 1, 2021 may be denied on the 30th day after application or the day after verification information is due. Applications filed prior to July 1, will be allowed 120 days to provide requested verification to establish Medicaid eligibility.
Exclusion of additional unemployment payments in determining eligibility. The $600/week of additional unemployment insurance payments under the CARES Act will not be counted as income in determining Medicaid eligibility. (However, these payments will be counted as income in determining marketplace subsidy calculations.)
Coverage of Medicaid services during the state of emergency
COVID-19 Vaccines for Medicaid Enrollees. In an executive order published March 16, 2021 Governor DeSantis revised the vaccine distribution plan, which applies to the general public including Medicaid enrollees, to lower the age requirement to 40 effective March 29, 2021 and then effective April 5, 2021 all Floridians are eligible to receive any COVID-19 vaccination approved by the Food and Drug Administration.
Medicaid enrollees eligible to receive the vaccine may visit myvaccine.fl.gov to find a location distributing the vaccine and to schedule an appointment.
On March 12, 2021, AHCA published instructions for Medicaid enrollees on how to obtain Medicaid transportation once they have scheduled an appointment for a vaccine. AHCA states: "Florida Medicaid will take you to get the COVID-19 vaccine at no cost. All you need to do is set up a time to get your vaccine. Next, let your Medicaid plan know you need a ride and they will take care of the rest. If you are not enrolled in a plan, call the Medicaid Helpline at 1-877-254-1055 to find out the name and phone number for a transportation service."
The state has also recently launched a new email system to help bring COVID-19 vaccines to homebound seniors. Seniors will be able to sign up to have the vaccine come to them by emailing a request to HomeboundVaccine@em.myflorida.com.
AHCA has posted Medicaid Alerts and FAQs providing more detail on Medicaid service changes in response to COVID-19. They address a wide range of topics including, but not limited to: telemedicine guidance for medical, behavioral health, and early intervention services providers; long-term care provider network flexibilities allowing more types of providers to deliver specified long term care services; and continuity of care for adult day care center enrollees during the time these centers are closed.
AHCA is loosening coverage restrictions for behavioral health services. Effective May 5, 2020, all prior authorization requirements for mental health or substance use disorder treatment are waived and service limitations (frequency and duration) are lifted. For behavioral analysis services, current authorizations will be extended through an "administrative approval process" which does not require providers to reassess beneficiaries currently getting services. Effective July 1, 2021 service limits will be reinstated for behavioral health services and effective July 15, 2021 Medicaid prior authorization requirements will be reinstated for behavioral health services.
Per a May 29, 2020 provider alert, during the state of emergency AHCA will be reimbursing providers for telemedicine well-child visits provided to children older than 24 months through age 20. Providers are directed to actively work to schedule follow-up in-person visits to administer immunizations and other physical components of the exam which cannot be accomplished through telemedicine.
Coverage of home and community-based waiver services (HCBS) - In response to the public emergency, Florida obtained approval from the federal government to make changes in HCBS waiver programs, including the Long Term Care and Developmental Disabilities programs. The changes are effective retroactively from January 27, 2020 to January 26, 2021. Details can be found here. They include, but are not limited to:
Note on COVID-19 testing, treatment, and vaccines for the uninsured. Florida has not opted to receive 100 percent federal Medicaid funding for COVID-19 testing of people without health insurance. Under the 2021 American Rescue Plan Act this option has been expanded to cover COVID-19 treatment and vaccines for the uninsured as well. Since the state has not taken up this option Floridians must look to an uneven patchwork of free testing, treatment, and vaccine resources scattered around the state. AHCA advises that uninsured people may receive free testing from their county health department or a federally qualified health center and that “many communities provide testing for free for individuals who do not have insurance. Please [click here] to find a test site in your area. Uninsured individuals should ask before the test whether testing is free of charge." There are no state agency instructions on where uninsured people can receive free treatment. However, more information on possible sources for free treatment is available here.
Residency proof no longer required at some vaccine sites, “paving the way for migrants.” - On April 29, 2021 Surgeon General Rivkees issued a new public health advisory specifying that COVID-19 vaccines are available to “a Florida resident” or someone “who is present in Florida for the purpose of providing goods or services for the benefits of residents and visitors of the State of Florida.” This new policy applies to all state-run and federally supported vaccination sites. It rescinds an advisory issued in January that had restricted vaccinations to people who could show proof of Florida residency
2021 unemployment compensation claimants can access free or reduced cost health insurance through the ACA marketplace. The Affordable Care Act (ACA) Marketplace was re-opened in February 2021 to give people who need health insurance a new “special enrollment" opportunity to get covered. The 2021 American Rescue Plan eliminated or vastly reduced premiums for many people with low or moderate incomes.
Starting July 1, 2021, people who received or have been approved for unemployment compensation for any week beginning in 2021 can access free or reduced cost comprehensive health insurance plans through the ACA marketplace. This benefit is available regardless of someone's current income. To get this benefit, people must enroll in the marketplace no later than August 15, 2021. For help with enrollment, contact Covering Florida at 877-813-9115.
School children in distance learning still eligible for free or reduced cost meals. Students in distance learning for 2020-21 can still receive school meals through the National School Lunch Program if they are eligible. The student or parent/guardian may pick up meals at the school but should contact their school for more information.
For a list of current child nutrition program waivers for Florida from USDA, go here.
Congress allows increased fruit and vegetable benefits. At present, WIC provides $9 for children and $11 for women monthly for fruits and vegetables. The American Rescue Plan Act makes funding available for a four-month increase in the benefit of up to $35 monthly, if a state chooses to do so.
DOH attains waiver allowing remote issuance: Department of Health (DOH) obtained a waiver of the requirement that participants pick up their EBT cards in person at recertification or during nutritional education appointments.
WIC participants allowed to substitute certain food. Under a waiver from USDA, WIC participants in Florida are allowed to substitute milk of any available fat content and whole wheat or whole grain bread in package sizes up to 24 oz. when 16 oz. packages are unavailable.
USDA waived physical presence requirements: Although the scope and logistics are unclear at this time, USDA has given DOH permission to waive the requirement that persons be physically present at each certification or recertification determination in order to determine eligibility under the program through May 31, 2020.
USDA extends certification periods through May 31, 2020, for some participants.
For a list of current WIC waivers for Florida from USDA, go here.
HHS provides guidance. HHS has issued guidance on the flexibilities in TANF to respond to COVID-19.