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Months and months of pay cuts
Florida’s recession is worse than anything this state has seen in more than a half century, when it comes to money in your pocket.
The Bureau of Economic Analysis said Thursday that Florida now has had three consecutive quarters -- a total of nine months -- in which the personal income of state residents has declined.
That hasn’t happened since the BEA began keeping records in 1948. Florida hasn’t even had two consecutive quarters of falling income until now.
Personal income is a measure of all the income to residents of the state. BEA said job losses, low interest rate payments and cuts in dividend income, plus direct pay cuts are to blame for the decline.
“Salaries have taken a drastic hit,” said Jorge Roca, a recruiter for Spherion in the Miami Office. He says it’s not uncommon to see a candidate in a sales position who was making $150,000 in salary plus commission now be offered a position that offers total compensation of $60,000 to $70,000.
The worst period for Floridians’ income in 61 years could have been even worse, had it not been for Social Security, unemployment and other so-called “transfer payments” that held steady.
“Those are very important in all the states because that’s really the only thing supporting personal income these days,” said BEA economist David Lenze.
Florida recorded a 0.9 percent fall in personal income in the first quarter of this year, compared to the fourth quarter of 2008.
The nation as a whole saw personal income fall 0.5 percent. In the fourth quarter, U.S. personal income fell 0.4 percent.
Florida’s first-quarter decline was larger than income cuts in all but seven states.
Expect more of the same for the remainder of this year, experts say. Roca, the recruiter, says the number of jobs to be filled has been growing, but pay levels remain depressed because employers have so many candidates to choose from in the ranks of the unemployed.
Harriet Johnson Brackey, the personal finance writer for the Sun-Sentinel, has been an award-winning business...
Comments
HEY FPL YOU READING THIS????
Posted by: FPL YOU HEAR | June 18, 2009 1:14 PM
We had our 401k suspended. They took 9 percent of our pay. There was NO merit increase. Next will be layoffs.
Posted by: steve | June 18, 2009 1:29 PM
Income has declined and property taxes, insurance, FPL costs increase. Why the decline? Because Florida has the most corrupt state government in our nation.
Welcome to Florida, the crookshine state of policiticans. Go check out the personal income levels of state, county, city elected & appointed officials. You can bet not one of them are showing any decline.
Those of us poor floridians who can leave are leaving, those of us still here are trapped.
Posted by: Tallahasseesucksbutt | June 18, 2009 1:34 PM
Can you forward this to the greedy @#$%$ at FPL?
Posted by: SSS | June 18, 2009 1:42 PM
Are you paying attention to this BSO and the CC office! Get your acts together We can not afford you. Cut your budgets, your OT and staffing levels or we will need to cut you in the next election.
Posted by: Taxed to death | June 18, 2009 2:04 PM
When Jeb Bush was Governor, he and the Republican legislature cut taxes to the wealthy and corporations.
He and the Republicans refused to do anything about the corrupt sales tax exemptions that cost taxpayers hundreds of millions each year.
The Florida Republican Party is owned by the insurance industry - don't believe me? Just look at your ever increasing home insurance rates. Are Allstate or State Farm hurting?
George Bush eliminated the estate tax on the nation's 5,000 billionaire families which now costs Florida taxpayers a staggering $732 million a year!
It is us who have to pay the cost of government when the wealthy don't pay their fair share.
But our voters keep voting Republican and the wealthy get richer and richer.
Am I the only one who sees cause and effect?
Unlike many, I am not afraid to put my real name on this posting.
Posted by: Steve Kelley | June 18, 2009 2:10 PM
WELL GET READY FOR WHATS TO COME FROM YOUR NEW ADMINISTRATION...YOU WILL BE PAYING FOR EVERYBODY THAT CANT PAY.... IF YOUR MIDDLE CLASS YOUR GOING TO GET BENT OVER ...YOU WILL BE CONTROLLED BY GOVERNMENT...THEY WANT TO CHOOSE YOUR DOCTOR...WHAT CARS YOU WILL DRIVE...AND HOW MUCH YOU CAN MAKE...AND WHAT YOU EAT...BECAUSE IF YOU EAT UNHEALTHY THEY WONT HONOR YOUR HEALTH INSURANCE BECAUSE YOU WERE NEGLIGENT.THEY WANT TO CONTROL THE MEDIA BECAUSE THEY DONT WANT ANYBODY TALKING AGAINST CURRENT POLICIES..MEANWHILE THEY CANT GET THE POST OFFICE TO RUN RIGHT AFTER 100 YEARS....RAN SS SECURITY AND MEDICARE IN THE GROUND
Posted by: LOU | June 18, 2009 2:32 PM
At least we're not Detroit!
Posted by: Max | June 18, 2009 3:31 PM
Steve needs to take an economics class. Is there a state in the union not having the same problems as Florida? Democrats have run my state for decades and they're cutting programs left and right for the same reasons everyone else is. You also might want to look at the local government because they have a lot more control over your taxes than does the state gov. The problem is much deeper than tax collection. Inflated house prices, over-inflated salaries, rising cost of living due to higher salaries and rising cost of materials, etc. Taxing high achievers out of existence is not the solution. Japan tried that and it failed miserably.
Posted by: John | June 18, 2009 7:12 PM
Here you go Floridians: For all you "tax em more" folks.
I hope the link works.
6 States Hitting Residents With Big Tax Hikes:
http://finance.yahoo.com/taxes/article/107205/6-states-hitting-residents-big-tax-hikes.html;_ylt=Ar11dPkqRvOF7J9ObH2uHC.7YWsA?mod=taxes-advice_strategy
Posted by: John | June 18, 2009 8:20 PM
Remember when Bush was President and people had jobs? Hussein's Hope & Change Depression. People with money have zero confidence in him and are not spending money. Look at Democrat controlled states like CA, MI, OR, IL - unemployment is 14% and rising in those states. Send the illegal aliens home too so taxpayers do not have to pay for all their freebies.
Posted by: Freddie | June 19, 2009 12:41 AM
TO John above..sorry but 90% of the other states are NOT having the same problem as Florida..increases to the residents of this state for property taxes, insurance, FPL and more cost of living are already so above the norm for "welfare pay." Which is what you get in Florida. Other states such as GA,NC pay far less for cost of living than we do even if their salaries are comparable. My friend in NC pays 19 dollars a month for her water bill...$90 a month for her electric $350 year for her insurance..and so on..her home is over 3500 sq ft and 3 years new...
Posted by: Kate | June 19, 2009 8:44 AM
Oppose the Waxman-Markey Carbon Cap and Trade Tax bill that is currently being rushed through Congress. Such an oppressive tax bill (that stands to cost every American family an average of $3,100 annually) should not be rushed through Congress and dumped on unsuspecting Americans--especially during these dire economic times.
Instead, this bill should be roundly opposed and defeated—especially considering recent polling that suggests a fast-growing majority of voters (57 percent) oppose cap-and-trade.
This is not the time to saddle Americans with a bill that experts are predicting will cost billions and potentially dry up 7 million jobs over the next 20 years!
Posted by: Greg H | June 19, 2009 12:14 PM
Kate,
I live in NC. Democrat controlled through-and-through. We pay both property taxes AND a State income tax. Inland, our insurance rates are low but not on the coast where the risk is highest... like you. Our cost of living is just as high. They still come back with additional fees and tax hikes even with a lottery and State Tax.
Everyone is going through the same crunch you are going through.
Posted by: John | June 19, 2009 10:35 PM
Oh, our billings change from month to month due to more volatile weather. Heating gas bills rise to nearly $180, (2K sq ft) in peak months. Natural Gas prices change based on market values. Electric in our peak warm months goes as high as they do in Florida. We only have a few real warm months to worry about. Water? Averages about $50 p/mo for 3 of us. I lived in Fl and NC and I can assure you the cost of living is about the same with the exception of home insurance. But we are not at the same level of storm risk as South Florida.
Your friend is giving you baseline numbers. Remember our weather changes and A/C is not required all year long.
Posted by: John | June 19, 2009 10:46 PM
Have faith. The Supreme Leader will send checks to low income people
Posted by: savant | June 21, 2009 4:50 PM
In Wisconsin here we pay both property tax and payroll tax. On my $800.00 paycheck I pay Wisconsin $65.00. I pay $95.00 per year for auto registration.On my $180,000 home I pay $4900.00 in property taxes MY average utility bill for heating and a/c is $212.00 a month. Wisconsin has a gas tax of $0.57 per gallon which gives us the highest gas prices in the country, at last check it was$0.32 above the national average according to AAA. Everything is taxed here. That is why we are considered to have the 5th highest tax burden in the USA. And yet they still want more.
Posted by: cst34mil | June 22, 2009 11:54 AM