(The Center Square) – Republican leaders in the Florida Legislature passed a budget this week that is smaller than the one before, provides $1.3 billion in tax relief and will bolster the state’s rainy day fund.
The $115.1 billion budget passed late on Monday night is $3.5 billion less this year’s outlay of $118.6 billion, a 3.2% cut. Lawmakers also managed to shoehorn $1.3 billion in tax relief and $830 million to pay off the state’s debt into the budget, which was passed just weeks before the start of the state’s new fiscal year on July 1.
“On the heels of historic state revenue balances and influxes of time-limited federal stimulus funds related to the pandemic, our revenue forecasts, while still growing, have stabilized,” said Senate President Ben Albritton, R-Wauchula. “This year we are right-sizing our budget for the long-term, spending less, while setting aside robust rainy day funds, and accounting for meaningful, broad-based tax relief. Floridians expect us to spend their tax dollars wisely.
“Florida has a great framework for accountability and transparency, but we can always do better. Throughout this budget we are implementing new ways to collect meaningful data to measure outcomes and ensure taxpayer resources are being utilized wisely.”
The amount of tax relief, $1.3 billion, is smaller than what was sought originally by House Speaker Daniel Perez, R-Miami, but is the largest recurring one in state history. The package includes the phaseout of the state’s business rent tax, with Florida being the only state to mandate such a levy.
August will have a permanent sales tax holiday for school supplies and another one in the fall for fishing and hunting supplies. Lawmakers also removed sales tax from disaster preparedness supplies.
The tax relief bill also allows local governments to reduce or repeal certain discretionary sales surtaxes with a two-thirds vote.
“This tax package is not just the largest recurring tax cut in state history; it is a structural reform that reins in the size of government and puts Floridians back in control of their own money,” Perez said. “We delivered permanent tax relief for working families, our most vulnerable and small businesses. From affordable housing to disaster preparedness to local infrastructure, these reforms will make Florida more livable and more competitive.
“And by reducing recurring revenue, we’ve removed the temptation for future lawmakers to grow government beyond what’s necessary. It’s not just conservative, it’s transformational.”
The House passed a $5.3 billion sales cut that would have cut the state’s 6% sales tax rate to 5.25%, which Gov. Ron DeSantis said would be “dead on arrival” if it made it to his desk.
As for K-12 education, the Florida Education Finance Program was allocated $29.5 billion, a $945 million increase compared to last year. Per-student funding would increase to $9,130, which is the highest in state history and lawmakers also added $102 million for salary hikes for experienced teachers.
Everglades restoration projects will receive a record $810 million.
For disaster response, appropriators provided $500 million in state funds and $350 million in federal funds.
The budget also includes $100 million for improved health care services for the state’s prisons, $55 million in salary increases for state law enforcement officers and state firefighters, $20 million for the Florida Highway Patrol to purchase new vehicles, body armor and in-car video systems.
The Legislature will put an initiative on the November 2026 ballot that would increase the constitutionally-mandated cap on the state’s rainy day fund from 10% to 25% of revenues.
Lawmakers will appropriate $750 million annually into a reserve annually to increase the fund, which is now up to 9.2% of revenue or $4.4 billion.
Lawmakers adjourned after 90 days of work on May 23 without a budget deal and had to return in special session to complete the budget.
