Florida Legislature Approves $115.1 Billion Budget with Tax Cuts and Raises, Awaits Governor DeSantis's Signature

After a six-week extension beyond the scheduled end date, Florida lawmakers have wrapped up one of the state's most contentious sessions by passing a $115.1 billion budget bill. The budget, which awaits Governor Ron DeSantis's signature, was affirmed with remarkable unanimity in the Senate and only two dissenting votes in the House, according to a report from NBC Miami.

The spending plan, slimmed down by about $3.5 billion from the current fiscal year's budget, includes a wide range of provisions. Highlights include a commercial-lease tax elimination, pegged at $1.3 billion in cuts, and pay raises for most state employees. However, working off the heat of friction with DeSantis and with each other, legislators took 102 days—past the typical 60—to hash out the final budget, as The Miami Herald details.

Tax cuts are a significant component of the new budget, with measures instituted to sustain tax holidays for back-to-school purchases every August, and exemptions on items ranging from hurricane relief supplies to sunscreen and life jackets. Furthering fiscal prudence, a proposal linked to the tax package seeks to increase the Budget Stabilization Fund's ceiling, colloquially known as the 'rainy-day fund', to 25% of general revenues. Moreover, according to statements by House Speaker Daniel Perez, the legislature aims to preserve this fund for future economic turmoils or disasters as discussed in the NBC Miami report.

In an unexpected turn opposed by many Democrats, part of the implemented bill could empower the governor’s Office of Policy and Budget to scrutinize the budgets of local governments—a provision that raised eyebrows and elicited concern during the final hours of deliberation. Furthermore, the Miami Herald reveals that over 1,700 vacant positions across various state departments face elimination in the current budget trimming exercise, including crucial health agencies. Both sources note that despite the cutbacks, key environmental projects like the Everglades restoration maintain their funding, underscoring a commitment to some degree of continuity in state priorities.

While the elimination of the business rent tax largely benefits corporations, individual taxpayers were left hoping for broader relief. Missing from action was the anticipated overarching property tax rebate championed by DeSantis with the House rejecting the measure. According to The Miami Herald, DeSantis's proposed $1,000 homestead property tax rebate plan did not find traction with either legislative chamber. As part of the reduced spending agenda, the budget includes a marginal increase in per-student funding in schools—a slight nod to future generations amidst the sea of cuts.

Already approved by both the House and Senate, and with the end of the fiscal year on the horizon, the completed budget teeters on the cusp of becoming a functional roadmap for the state, or the subject of DeSantis's veto power.