With time running out, Florida's GOP-led Legislature forges budget deal
TALLAHASSEE, Florida — Florida legislative leaders said late Friday they have forged a budget deal that will guarantee $2.25 billion shifted into tax cuts and reserves while also establishing a path for legislators to avoid a potential shutdown of state government this summer.
The agreement does not include a permanent reduction in the overall sales tax rate, which at one point had been a top priority of state House Speaker Daniel Perez but had come under fire by Gov. Ron DeSantis amid a bitter feud between Sunshine State Republicans.
The deal announced late Friday by Perez and Senate President Ben Albritton is on top-line level spending levels that will be used to hammer out a final budget in June. In a memo to senators, Albritton said the plan is for lawmakers to start budget conference meetings Tuesday, with the goal to work over the next two weeks and vote out the budget no later than June 16.
'The framework set forth in these allocations provides for a fiscally responsible, balanced budget that reduces state spending, lowers per capital spending, and reduces the growth of state bureaucracy,' Albritton wrote.
Albritton and Perez have been at odds for weeks over the size and scale of potential tax cuts, as well as a disagreement on how much spending should be authorized in the coming year. Perez had maintained that the Republican-controlled Legislature and DeSantis had spent too much the last several years.
The state House and Senate on Friday evening did not release all the details of the proposed deal, including the amount of state tax dollars that will be allocated to specific areas such as the environment, health care and education. A spokesperson for Albritton said those numbers would be released Monday.
But the agreement calls for the Legislature to reduce 'recurring revenue' by $2.25 billion including the elimination of sales tax charged on commercial leases and what is being billed as 'permanent sales tax exemptions targeted toward Florida families.' This was not explained further, but Albritton earlier in the year had proposed the permanent elimination of sales taxes on clothing and shoes valued at less than $75.
The $2.25 billion, however, also includes $750 million for the state's main budget reserve while also setting aside $250 million a year to pay off outstanding debt — another top priority for DeSantis.
Legislative leaders also announced that they would ask voters to increase the size of the Budget Stabilization Fund mandated in the state constitution. The fund is currently capped at 10 percent of the net revenue collected for the state's main budget account. Lawmakers want voters to increase the amount authorized for the fund to 25 percent and to require the state to set aside $750 million a year until that cap is reached.
The proposed amendment would go on the November 2026 ballot. Perez and Albritton have promised to keep $1.5 billion in reserves over the next two years before the ballot measure goes before voters.
During their regular 60-day session, the state House and Senate initially pushed out starkly different spending plans that had a $4.4 billion spending gap as the House proposed a massive $5 billion permanent reduction in the state's sales taxes.
The session was supposed to end earlier in early May, but lawmakers were forced to extend it beyond the normal 60 days due to their budget disagreement. On what was supposed to be the final day of the session, Albritton and Perez said they had agreed to slash taxes by $2.8 billion, including a permanent reduction in the state sales tax rate.
But that deal blew up after DeSantis threatened to veto the sales tax plan, saying it would undermine efforts to cut property taxes the governor has been championing. Albritton earlier this month stated in a memo that many senators were also concerned about the impacts of such a large cut. Perez reacted harshly, saying Albritton had broken his promise.
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