(The Center Square) – According to numbers released by the Florida House of Representatives, a tentative budget deal would result in a 2.8% increase in general fund appropriations for fiscal 2026.
The new fiscal year, which starts on July 1, could have $49.96 billion in general fund spending if the two chambers pass the budget conference report. The state’s general fund is primarily funded by the state’s 6% sales tax and other tax revenues.
With federal and dedicated funds, such as the Florida Lottery, the total budget is likely to be about $119.8 billion. Lottery revenues are allocated specifically for K-12 education.
The two chambers are working on the details of the compromise in joint budget hearings that will continue this week before a final vote (after the constitutionally mandated 72-hour cooling off period) scheduled for June 16.
The two sides are nearly $62.5 million apart when it comes to funding for the state’s higher education system, with the Senate seeking a larger outlay, $8.73 billion in total funds (general, federal and dedicated funds) versus the House’s proposal of $8.66 billion.
The biggest sticking point is workforce education, with the Senate seeking $124.4 million and the House seeking nearly half of that outlay at $67.3 million.
On K-12 education, the two chambers are nearly $250 million apart, with the Senate seeking a total outlay of $20.9 billion and the House countering with $20.6 billion.
Under the funding allocation released by the House, K-12 education would receive $16.09 billion in general funds and higher education would receive $6.52 billion from the general fund.
The state’s entitlement programs and Medicaid would receive a general fund appropriation of $17.53 billion.
Criminal justice would receive $6.53 billion, while transportation, tourism and economic development would be allocated $552.6 million.
Agriculture, environmental protection and natural resources would receive nearly $1.54 billion from general fund revenues. General government would be allocated $674.6 million, while what was termed “administered funds and statewide issues would receive $527.4 million.
Tax relief in the budget package would be about $2.25 billion that includes the elimination of the business rent tax ($900 million) and permanent sales tax exemptions ($350 million). The deal also includes $250 million in debt reduction.
According to the state constitution, 5% to 10% of the general fund revenues must be redirected to the state’s rainy day fund, known as the Budget Stabilization Fund.
Any revenues in addition can be redirected to non-recurring appropriations or tax relief.
Last year, lawmakers appropriated $48.6 billion, which constitutes about 42% of the state’s total budget, which was $116.5 billion. The rest consists of federal funds (about 33%) and 26% from state trust funds,
