(The Center Square) – Tax relief and continued reduction of tax-supported debt are leading praises of the Legislature from an independent nonpartisan taxpayer research institute in Florida.
The Taxpayers’ Guide to Florida’s FY2025-26 State Budget, produced by Florida TaxWatch, highlights moves in a $114.8 billion spending plan for education, human services, the environment, transportation and the general government and public safety areas. The total for the coming year is 3.25% less than 2024-25, most since 2011-12, and is mainly tied to federal funds and trust fund spending reduced by more than $2 billion.
Dominic Calabro, president and CEO of the nonprofit, said in a release, “Florida TaxWatch commends the Legislature for providing $2.1 billion in tax relief, especially the elimination of the Business Rent Tax, an anti-competitive tax that is unique to Florida. This has been a longstanding top Florida TaxWatch priority. Our 10-plus years of research on the topic led to the BRT tax rate being reduced from 6% to 2% and ultimately to its final elimination. This final cut will save all businesses that rent Florida property a total of $1.5 billion annually.”
The budget spends, respectively, $29.5 billion for education in the Formula for Education Finance Program and about $9,143 per student; eliminates gaming revenue for the Water Quality Improvement program; and spends $13.7 billion for highways, bridges, resurfacing, transit, ports, aviation and trails.
State employees get a 2% pay raise and 39 new judges will be gained in the Judiciary.
In the release, Executive Vice President Jeff Kottkamp said, “Florida TaxWatch also commends the governor and the Legislature for their commitment to reducing outstanding state debt. Florida has retired $7.3 billion in tax-supported debt since 2019. The new budget has a provision to use $580 million to continue this effort. In addition, this Legislature created the Debt Reduction Program that will use $250 million annually for accelerated debt reduction.”
Kottkamp is the nonprofit’s general counsel.
