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Statewide Policy Analysis Tools
The 2010 Legislature passed SB 1178 (Chapter 2010-101, Laws of Florida) which created Section 216.138, Florida Statutes. The statute provides the Senate President and the House Speaker with the authority to request additional analysis of legislation using tools and models not generally employed by the consensus estimating conferences.
The Office of Economic and Demographic Research (EDR), in consultation with the principals of the consensus estimating conferences and with input from the public, initiated the Statewide Policy Analysis Tools project to develop the protocols, procedures, techniques and model(s) necessary to perform the additional legislative analyses required by statute.
On December 1, 2010, EDR submitted a report of its findings and recommendations to the President and Speaker. The report details the policy analysis techniques, protocols and procedures to be implemented. The policy analysis techniques include cost-benefit, return-on-investment, dynamic scoring and other techniques appropriate for the legislation being evaluated. The protocols and procedures address the format for reporting results, proposed linkages to appropriations and revenue forecasting processes (consistent with the constitutional balanced budget requirement), and proposed statutory changes. The 2011 Legislature passed legislation containing the proposed statutory changes and it was signed into law (Chapter 2011-076, Laws of Florida).
EDR has contracted with Regional Economic Modeling, Inc. (REMI) for REMI Tax-PI. REMI intends for Tax-PI to be a state-of-the-art dynamic fiscal and economic impact model for evaluating the total fiscal and economic effects of tax policy changes. EDR is working with REMI in the development of Tax-PI to ensure that the model has the capability of incorporating key elements of Florida's tax and budget structure. The REMI Tax-PI model is intended to primarily be a bridge to the completion of the statewide model. Thereafter, it will be used as an alternative model.
In regard to the statewide model, EDR has engaged a contractor experienced in creating dynamic computable general equilibrium models to assist in the development of a Florida-specific model. The model should be operational by December, 2011. This model in combination with the REMI Tax-PI model should provide the Legislature with the long term dynamic impact estimates of proposed fiscal policy changes envisioned by the 2010 legislation.
Last Revised: November 8, 2012
