Two: Don't Make Financial Promises Taxpayers Can't Keep
Florida’s state and local elected officials have been gambling with taxpayer dollars. They continue supporting unsustainable government programs, like Medicaid, defined-benefit public pension plans and Citizens Property Insurance, because they don't want to tell us a truth we may not like hearing – these programs are financially unsound.
Reform the unsustainable government programs – like Medicaid and defined-benefit pension plans - that have placed too much risk on the backs of Florida’s taxpayers.
We need to pursue reforms that will make healthcare more affordable and accessible, provide a retirement plan for our public workers that protects the interests of employees and taxpayers, and remove taxpayer-subsidized, government-run companies from the insurance market. Elected officials must stop making promises that taxpayers can’t afford. They must be honest with us, and make decisions that will protect us now and in the future.
- Florida’s Retirement System (FRS) serves more than 1 million government employees, making it the fourth largest public pension program in the country. Source: James Madison Institute
- The FRS currently has more than $21 billion in unfunded liabilities. Source: State Board of Administration
- Florida currently has an optional defined contribution plan, however only 16% of employees elect to be enrolled in it, versus the 84% in the pension plan. Source: James Madison Institute
- Public sector pension programs guarantee a rate of return that is 3 to 4 times higher than what private sector workers are able to earn. Source: The Heritage Foundation
- The State of Florida currently contributes $5.5 billion per year to the FRS, but would need to double that contribution to $11 billion a year for the fund to remain solvent. Source: James Madison Institute