FLORIDA CITY DEBT-A CASE STUDY*

Abstract

FLORIDA CITY DEBT was a familiar subject in governmental circles two decades ago when municipal bankruptcy directed congressional attention to debt composition by the judiciary. Twenty years thereafter is a desirable time for stock-taking by a case study that embodies so many of the fiscal problems found elsewhere to a varying degree. Florida affords an excellent laboratory because this state was notorious during the 1930's for debt defaults, tax delinquency, and unbalanced budgets. By 1952, Florida's local governments were in the clear by the almost complete cure of defaults. Only four small cities continued in default, while defaults in eight school districts persisted only for small sums. Although the counties were free of defaults, the emergence of a new (and now cured) default by the Ferdandina Port Authority shows that maladministration, as well as economic declines, can induce defaults.