Florida Legislature reaches preliminary budget agreement

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a day ago

The Brief
Legislative leaders in Florida say they've reached a budget deal that includes nearly $2 billion in tax relief.
The agreement paves the way for lawmakers to negotiate full spending details next week.
A final vote is expected by June 16, just in time for the July 1 fiscal deadline.
TALLAHASSEE, Florida - The Florida Legislature has tentatively reached a budget agreement, Florida House speaker Daniel Perez told state leaders in a memo late Friday.
What we know
After weeks of stalled negotiations, Florida House Speaker Daniel Perez and Senate President Ben Albritton announced late Friday that they've agreed on a budget framework for the 2025–2026 fiscal year.
By the numbers
The $900 million plan eliminates the tax on commercial leases, a long-pursued priority for business groups, and includes $350 million in permanent sales-tax exemptions aimed at helping Florida families.
It also allocates $250 million to debt reduction and $750 million to the state's rainy-day fund.
What they're saying
House Speaker Daniel Perez, R-Miami, and Senate President Ben Albritton, R-Wauchula, issued memos that indicated they expect to pass a budget for the 2025-2026 fiscal year on June 16. The memos came after weeks of behind-the-scenes talks aimed at trying to kick-start the conference negotiating process.
"I appreciate everyone's patience during this unusual and protracted allocation process. I am pleased to inform you that we have reached an agreement with the Florida Senate," Speaker Perez said in the memo, adding that the budget conference would begin next week.
"We will also be taking up a joint resolution to amend the Florida Constitution to raise the cap on the Budget Stabilization Fund (BSF) from 10% to 25% and require an annual payment ($750 million) into the BSF until the cap has been reached," he said.
"In total, the framework set forth in these allocations provides for a fiscally responsible, balanced budget that reduces state spending, lowers per capita spending, and reduces the growth of state bureaucracy," Albritton wrote in his memo.
"The budget authorizes early payoff of state debt, accounts for significant, broad-based tax relief, and builds on historic state reserves for emergencies," he added.
The backstory
The budget impasse stems from deep divisions between the House and Senate over how to cut taxes.
The House initially pushed a $5 billion plan that would have slashed the state's sales-tax rate, while the Senate favored targeted tax holidays and commercial-lease tax reductions.
Although leaders said on May 2 that they'd agreed to a $2.8 billion tax cut package, that tentative deal fell apart publicly when Perez accused Albritton of backing out. Albritton countered that senators felt a blanket sales-tax cut wouldn't be felt meaningfully by Floridians.
Big picture view
The delay in passing a budget highlights ongoing friction within Florida's Republican-led government, particularly when it comes to fiscal priorities.
With a $117 billion proposed state budget, decisions around tax policy reflect competing visions of how best to ease the cost burden on residents and stimulate the economy. The current deal leans on more targeted tax relief, signaling a shift toward smaller-scale benefits rather than across-the-board cuts.
Dig deeper
Among the negotiated agreements that Speaker Perez noted in his memo:
$2.25 billion in recurring revenue reductions
Elimination of the business rent tax ($900 million)
Permanent sales tax exemptions ($350 million)
$250 million in debt reduction
The Florida House will convene on Thursday, June 5 at 9 a.m. The House Budget will convene that same day in the afternoon.
Florida Gov. Ron DeSantis unveiled his budget proposal in February and tasked the Florida Legislature to take it up quickly. However, state lawmakers had to extend their talks as they were unable to reach an agreement.
Among Gov. DeSantis' budget wishes:
Repeal of the state's business rent tax
Creation of a new venture capital tax credit program, funded at $100 million
A 14-day back-to-school sales tax holiday on school supplies, clothing, and computers
Two 14-day disaster preparedness sales tax holidays on hurricane supplies
A one-month summer sales tax holiday on outdoor recreation items
A 7-day tool time sales tax holiday on tools
Second Amendment sales tax holiday between Memorial Day and Fourth of July on ammunition, firearms, and accessories
A two-month boating fuel tax holiday on gas
A year-long exemption of the mortgage tax
A 2-year delay of the natural gas fuel tax set to start Jan. 1, 2026
What we don't know
The memos released by legislative leaders did not specify which items will be covered by the $350 million in sales-tax exemptions. They also omitted any reference to the property-tax relief that Gov. Ron DeSantis had previously championed. The lack of detail leaves questions about how the exemptions will be structured and which families or income brackets may benefit most.
What's next
Conference committees will start meeting on Tuesday to negotiate details of the different parts of the budget, such as education, healthcare and criminal justice. Unresolved issues will go Thursday to House Budget Chairman Lawrence McClure, R-Dover, and Senate Appropriations Chairman Ed Hooper, R-Trinity, for further negotiations.
The fiscal year will start July 1, which, if a budget passes June 16, will give Gov. Ron DeSantis two weeks to use his line-item veto authority.
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The Source
House Speaker Daniel Perez issued a statement late Friday, May 30. Gov. Ron DeSantis unveiled his budget goals in February 2025.