Study: Seniors mean $1.4-billion to the state

But despite the economic benefit they provide, the head of the AARP in Florida warns that elderly services are lacking.

©Associated Press
July 8, 2002

TAMPA -- Contrary to popular belief, a new study suggests that Florida's retirees and senior citizens contribute much more to the state's economy than the state spends on them.

Not only are Florida seniors mostly self-supportive, they provide the state a net economic benefit of $1.4-billion, according to the study by the consulting firm Thomas, Warren and Associates. The study was paid for by WCI Communities, a developer of senior communities.

But the head of the AARP in Florida warned those numbers don't tell the whole story, noting that services for the state's growing elderly population are stretched thin and continue to be underfunded.

The study found that in 2000, Florida residents 50 and older provided the state with about $2.7-billion in economic benefits from sales tax and state fees, while costing the state about $1.28-billion in health and human service costs. The difference -- about $1.4-billion -- was the net economic benefit.

While over-50 residents make up about one-third of the state's population, they account for 52 percent of all spending, the study said. Those spending habits accounted for more than 4-million jobs, meaning that two out of every three jobs in Florida is affected by their spending.

On top of that, the state's 50-and-over residents paid about $4.4-billion in property taxes in 2000, 47 percent of the total $9.4-billion collected on residential and rental property.

"Mature residents provide tremendous economic benefit in terms of the taxes they pay, they impose very few costs on the community, and they spend a lot of money," said Gene Warren, president of Thomas, Warren and Associates, which conducted the study using 2000 Census figures and state and federal spending reports.

But Bentley Lipscomb, state director of AARP, a nonprofit organization representing people over 50, was critical of the study. He said that not enough money is being allocated by the state for nursing home costs through Medicaid, causing a crisis in Florida.

And it's gotten worse because people are living longer, he said.

"(The study) is somewhat misleading in that it would have you believe the state of Florida is spending what it should be in providing services to older people," Lipscomb said, noting that the state's Department of Elder Affairs has 15,000 people on a waiting list for services.

Still, state officials say they must continue to court retiring seniors because of the huge economic impact.

© 2006 • All Rights Reserved • St. Petersburg Times
490 First Avenue South • St. Petersburg, FL 33701 • 727-893-8111

Contact the Times | Privacy Policy
Standard of Accuracy | Terms, Conditions & Copyright