Okaloosa County BOCC — March 17, 2015 — 76127 economic evaluation of florida s investment in beaches — reading text

consumption of fixed capital (CFC), and intermediate purchases of goods and services less sales to other sectors and own-account production of structures and software. It excludes current transactions of government enterprises, interest paid or received by government, and subsidies. Real Output (Fixed 2009 $(M)) – Consists of sales, or receipts, and other operating income, plus commodity taxes and changes in inventories. Total Employment (Jobs) – This comprises estimates of the number of jobs, full time plus part time, by place of work. Full time and part time jobs are counted at equal weight. Employees, sole proprietors, and active partners are included, but unpaid family workers and volunteers are not included. Population (Persons) – Reflects first of year estimates of people, includes survivors from the previous year, births, special populations, and three types of migrants (economic, international, and retired) 21  APPENDIX D: ADDITIONAL STORM DAMAGE RESOURCES Below is an excerpt from the State of Florida Long-Range Financial Outlook for Fiscal Years 2015-16 through 2017-18: State Costs for Hurricanes, the Florida Hurricane Catastrophe Fund, and Citizen’s Property Insurance Florida’s financial stability is vulnerable to the potential impacts of natural disasters, especially major hurricanes. This vulnerability can take several different forms, but one of the most immediate is to the state’s long-term financial health. After the 2004 and 2005 hurricanes, the Legislative Office of Economic and Demographic Research undertook an in-depth analysis of the revenue and budgetary impact on state government from weather events of this magnitude. Popular belief has spread the misconception that hurricanes are somehow beneficial to the state from an economic perspective. However, the reality is much more complicated. From past events, there appear to be four distinct phases of activity related to hurricanes—each of which has unique economic responses. The table on the following page details the unique effect of each phase. Contrary to the oft-repeated myth that government makes money during hurricanes, state government typically has expenditures greater than the incremental increase in the revenue estimate and becomes a net loser when all expenditures are taken into account. In reviewing the final impact of the 2004 and 2005 hurricanes, after the state’s hurricane-related expenditures are subtracted from the estimated additional revenues, the bottom line for both years was clearly negative. This means that the state had to spend more than the generated revenues. 22 Hurricanes: Economic Phases Phase Defining Characteristics Statewide Economic Consequences Preparatory Phase  Purchase of Emergency Supplies Demand...Localized increase in demand (approximately 72 hours (canned food, batteries, radios, for specific items, and potential non- in advance of the candles, flashlights, charcoal, gas, affected area increase in lodging hurricane to landfall) demand, but largely undetectable propane, water, ice, shutters, boards / plywood, etc.) State Budget...Shifting of costs from  Evacuation Expenses normally provided services to o In-State...hotels and lodging, emergency management, as well as transport costs like rental unanticipated overtime and shelter cars and gas costs o Out-of-State...leakage State Revenues...Slight uptick, but largely undetectable Crisis Phase  Rescue and relief efforts (largely Demand...Localized decrease in overall (landfall to several public, charitable, or free) demand; significance depends on the weeks after landfall)  Roads closed due to debris event  Private structures and public State Budget...Government agencies infrastructure damaged provide goods and services and incur  Utility disruptions new expenditures that may or may not  Businesses and non-essential parts be matched at a later time by the of government closed federal government  Temporary homelessness State Revenues...Detectable downtick;  Violence and looting significance depends on the event Recovery Phase  Increased spending related to Demand...Localized increase in overall (subsequent to the Crisis deductibles, repair, and demand, and prices likely increase for Phase and generally replacement some items lasting up to two or o Private Savings / Loans three years) Employment...Will temporarily see o State Spending gains as relief and recovery workers o FEMA and Federal Spending move into the area o Insurance Payments  Competition for scarce resources State Budget...Reallocation of state and (contractors, roofers, supplies, local government spending to the affected area construction workers, building materials, debris removal, etc.) State Revenues...Discernible and significant uptick Displacement Phase  Reduction in normal purchasing Demand...Localized decrease in overall (subsequent to the behavior for items that were demand, but largely undetectable at the Recovery Phase and bought or replaced ahead of state level lasting from two to schedule six years) State Revenues...Slight downtick, but  Demographic and labor shifts largely undetectable related to dislocated households and economic centers 23