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What kind of (small - medium) sized "local" businesses do state government use?

Im looking to open a small-medium sized business servicing the public, but mainly the Florida State government.

It is not clear from your question you looking to have a contract with Florida Government, or you are thinking of opening a business that would be very helpful to public in Florida. Evaluate what is it you are good at and where you could succeed.
State governments contract with various businesses depending on their current need for services. It's done through RFP process. and it is a complicated process. It does not happen automatically. Go to your states website and look for procurement.

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