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Miami Herald
17-06-2025
- Business
- Miami Herald
Florida Legislature passes $115.1 billion budget at the 11th hour
One of the more-contentious legislative sessions in recent history came to a close late Monday as lawmakers approved a $115.1 billion budget for next fiscal year and prepared to send it to Gov. Ron DeSantis. The Senate unanimously passed the spending plan (SB 2500), while the House approved it in a 103-2 vote. Lawmakers finished the annual session at 11:19 p.m. — more than six weeks after the scheduled May 2 end of the session. 'Here we are at the end of the long and winding road,' House Speaker Daniel Perez, R-Miami, said as the House convened Monday. The budget, which will take effect with the July 1 start of the 2025-2026 fiscal year, remains subject to DeSantis vetoes. But it would be about $3.5 billion smaller than the budget for the current fiscal year and is less than a $115.6 billion plan that DeSantis proposed in early February. Lawmakers also approved a $1.3 billion package of tax cuts, dominated by the elimination of a commercial-lease tax that has long been a target of business lobbyists. The budget includes moves ranging from paying down state debt to giving most employees pay raises. Sen. Ileana Garcia, a Miami Republican who chairs the Senate Criminal and Civil Justice Appropriations Committee, described the spending plan as 'lean yet strategic.' The only dissenting votes on the budget were cast by Rep. Angie Nixon, D-Jacksonville, and Rep. Dotie Joseph, D-North Miami. While she voted for the budget, Rep. Anna Eskamani, D-Orlando, said it represented 'a lot of missed opportunities.' 'There was just so much time spent on conflict and controversy, that a lot of issues that would benefit working families got left behind,' Eskamani said. The House and Senate could not reach agreement on a budget and tax cuts before the scheduled end of the 60-day session and returned this month to hash out their differences. In addition to disagreements between the House and the Senate, Perez also has clashed this year with DeSantis. As an example, the House proposed cutting the state's overall sales-tax rate, while DeSantis wanted to give property-tax rebates to homeowners. Perez said he wouldn't 'shy away' from talks that may conflict with the Senate or governor. 'Our goal was to be a co-equal branch of government, have an opinion that matters, an opinion of value,' Perez told reporters Monday. 'I do believe now more than ever that the House's opinion matters.' Lawmakers did not pass DeSantis' property-tax rebates or reduce the overall sales-tax rate. But Senate President Ben Albritton, R-Wauchula, and Perez said cutting property taxes remains a goal that lawmakers will revisit during the 2026 session. Albritton said a focus of this year's session was 'normalizing the revenues of the state of Florida' after an influx of federal money in recent years stemming from the COVID-19 pandemic. 'We knew in the beginning we wanted to have a large-scale conversation about government efficiencies and work toward an even greater level of fiscal responsibility and accountability,' Albritton told reporters Monday. 'That's what you've seen. Now, was that compounded with some of the other things on the peripheral that made it look like there were some huge arguments going on? Sure, but, we stayed true to task. …. That's the way the system is supposed to work. I don't view this on day 105 (of the session) as a failure.' In addition to the $904 million elimination of the sales tax on commercial leases, the tax package (HB 7031) also would require holding a tax 'holiday' every August on back-to-school items, such as clothes, school supplies and personal computers. While such holidays have been held most years, they have needed annual approval; the tax package would make them recur every year. The tax package, which was approved 93-7 by the House and 32-2 by the Senate, also includes sales-tax exemptions for hurricane supplies such as certain types of batteries and portable generators. Other parts of the package include tax exemptions on such things as sunscreen, insect repellant, tickets to NASCAR championship races, fire extinguishers, smoke detectors, life jackets, bicycle helmets and admission to state parks. Some of the heaviest debate Monday came on bills linked to the budget, including on what is known as an implementing bill (SB 2502). Democrats criticized part of that bill that could lead to the governor's Office of Policy and Budget reviewing the budgets of local governments. Sen. Carlos Guillermo Smith, D-Orlando, asked if the governor would 'send a bunch of 20-year-old bros' to review local governments. But Sen. Jason Pizzo, a Sunny Isles Beach lawmaker without party affiliation, backed the measure, saying he's seen cities in his district 'blowing untold amounts of money on really stupid things. On trips all over the world. On productions and shows.' The House approved the implementing bill in an 87-18 vote, while the Senate approved it 24-8. Among other concerns raised Monday by Democrats were the potential impacts of federal funding cuts in programs such as food stamps and Medicaid. Albritton said legislative leaders and the governor will address any impact 'when it gets here.' 'We don't know what those numbers are going to be yet, so our budget does not contemplate what they could be,' Sen. Jay Trumbull, a Panama City Republican who chairs the Senate Health and Human Services Appropriations Committee, said. Linked to the tax package is a plan (HJR 5019) to ask voters in 2026 to increase the ceiling of a rainy-day reserve, known as the Budget Stabilization Fund, from 10% of general revenue collections to 25%. The plan includes setting aside $750 million in each of the next two fiscal years in anticipation of the ballot measure passing. Legislative leaders said the reserve fund would help future lawmakers if the state faces disasters or economic downturns. 'If there is a recession, that [future] Legislature will thank this body for the hard decisions that we made today to save money that could have very easily been spent on a bunch of pork,' Perez said. The budget includes $580 for paying debt, and lawmakers approved a separate bill (HB 5017) that requires an annual $250 million repayment of state bonds. Also, the package includes 2% pay raises for most state employees, with state law enforcement officers and firefighters in line for additional 8% to 13% boosts. The spending plan also includes a 1.59% increase in per-student funding in schools, from $8,987.67 to $9,130.41. In addition, it includes $691.5 million for Everglades restoration, the same as in the current year, $675.2 million for water improvement projects and $170 million for flood and sea-level grants. News Service Executive Editor Jim Saunders contributed to this report.
Miami Herald
10-04-2025
- Business
- Miami Herald
Tax relief at issue as Florida House and Senate begin budget negotiations
The House and Senate on Wednesday passed proposed budgets that are billions of dollars apart, giving them a little more than three weeks to mesh their spending goals and reach an agreement on tax cuts. While the House has proposed cutting the state's overall sales-tax rate, the Senate on Wednesday outlined a less-aggressive proposal that would provide a permanent sales-tax exemption on clothes and shoes costing $75 or less. Senate President Ben Albritton, R-Wauchula, said he expects the House and Senate to 'end up somewhere in the middle' on a budget. The legislative session is scheduled to end May 2, with the state's new fiscal year starting July 1. 'We're going in the right direction. We're communicating well. We're working together,' Albritton said after a Senate floor session. 'And I have every expectation we'll get the plane landed.' Later, House Speaker Daniel Perez, R-Miami, said he expects lawmakers will reach budget agreements on time, while also saying 'we believe in our budget.' The Senate budget proposal (SB 2500) totals $117.36 billion. The House proposal (HB 5001) has a bottom line of $112.95 billion and is linked to a $5.4 billion tax package (HB 7031) that includes reducing the overall state sales-tax rate from 6% to 5.25%. Gov. Ron DeSantis has said he wants a one-time property tax break for homesteaded properties and to ask voters in 2026 to pass a constitutional amendment to reduce or eliminate property taxes. He also has requested the elimination over two years of a sales tax on commercial leases and sales-tax 'holidays' on school supplies, recreational items, hurricane supplies, ammunition and firearms. Echoing DeSantis, Rep. Mike Caruso, R-Delray Beach, said no one is 'clamoring' for the House sales-tax cut, which he said would only provide 'minimum immediate relief' while inadvertently benefitting 'out-of-state visitors and tourists.' 'I'd rather see the money go to real Floridians, the ones that call this state home,' Caruso said before joining a unanimous vote in support of the House tax proposal. House Ways & Means Chairman Wyman Duggan, R-Jacksonville, noted that DeSantis didn't recommend the one-time property tax cut until after the House 'rolled out the sales tax relief.' The House tax package also would reduce the commercial-lease tax from 2% to 1.25%, cut the sales-tax rate on electricity from 4.35% to 3.6%, reduce the tax rate on sales of new mobile homes from 3% to 2.25% and trim the rate on coin-operated amusement machines, such as pinball machines, from 4% to 3.25%. Albritton has cautioned against making cuts that lawmakers might have to readdress within a couple of years. On Wednesday, he pitched the proposed sales-tax elimination on clothes and shoes as being 'where it can help the most number of Floridians.' The Senate proposal also would direct the Legislature's Office of Economic and Demographic Research to study the effects of reducing or eliminating property taxes for homesteaded properties. Among other things, it would lead to holding a 'back-to-school' tax holiday in August; a tax holiday on disaster-preparedness supplies in June; a tax holiday on recreational items in July; a tax holiday on tools around Labor Day; and a 'hunting season' tax holiday in September and October on guns, ammo and other hunting supplies. The estimated $750 million package is expected to go to the Senate Finance and Tax Committee on Tuesday. The House and Senate budget proposals are below the $117.46 billion budget lawmakers passed last year before it faced DeSantis vetoes, mid-year adjustments and veto overrides. Senate Appropriations Chairman Ed Hooper, R-Clearwater, described the goal as 'right-sizing' state spending. The House voted 98-6 to approve its proposed budget, which includes cuts in spending on agencies and programs. Rep. Felicia Robinson, D-Miami Gardens, said the House should invest in programs that promote growth, as reducing services at a time the state has strong reserves will 'lead to job losses, reduced public services and a less stable economy.' 'I understand us trying to be conservative, but doing anything to the extreme can be detrimental,' Robinson said. The House and Senate agree on some issues, such as continuing to spend $80 million next year on the tourist-marketing agency Visit Florida. But they differ in other areas, such as the Senate proposing to spend $750 million for Everglades restoration and the House proposing $357 million. 'Over the last 10 years the Legislature has appropriated nearly $4 billion for Everglades restoration. Of this amount, over $1.1 billion remains unspent, $900 million from the last two fiscal years,' House Agriculture & Natural Resources Budget Chairwoman Rep. Tiffany Esposito, R-Fort Myers, said. 'We believe it's fiscally responsible to reduce our appropriation of funds until the dollars we've already appropriated have been spent.' Seeking to help the state's troubled citrus industry, the Senate would spend $200 million for research and to help packinghouses and growers, with $125 million included for new trees. The House has proposed $10 million to fight citrus canker disease, which has caused massive damage to the industry over the past two decades.
CBS News
10-04-2025
- Business
- CBS News
Florida House, Senate pass budget plans, let the negotiations begin
The state's House and Senate passed proposed budgets on Wednesday that are billions of dollars apart, giving them a little more than three weeks to mesh their spending goals and reach an agreement on tax cuts. While the House has proposed cutting the state's overall sales tax rate , the Senate on Wednesday outlined a less-aggressive proposal that would provide a permanent sales tax exemption on clothes and shoes costing $75 or less. Republican Senate President Ben Albritton said he expects the House and Senate to "end up somewhere in the middle" on a budget. The legislative session is scheduled to end May 2, with the state's new fiscal year starting July 1. "We're going in the right direction. We're communicating well. We're working together," Albritton said after a Senate floor session. "And I have every expectation we'll get the plane landed." Later, Republican House Speaker Daniel Perez said he expects lawmakers will reach budget agreements on time, while also saying "we believe in our budget." The Senate budget proposal (SB 2500) totals $117.36 billion. The House proposal (HB 5001) has a bottom line of $112.95 billion and is linked to a $5.4 billion tax package (HB 7031) that includes reducing the overall state sales tax rate from 6% to 5.25%. Gov. Ron DeSantis has said he wants a one-time property tax break for homesteaded properties and to ask voters in 2026 to pass a constitutional amendment to reduce or eliminate property taxes . He also has requested the elimination over two years of a sales tax on commercial leases and sales tax "holidays" on school supplies, recreational items, hurricane supplies, ammunition and firearms. Echoing DeSantis, Republican Rep. Mike Caruso said no one is "clamoring" for the House sales tax cut, which he said would only provide "minimum immediate relief" while inadvertently benefitting "out-of-state visitors and tourists." "I'd rather see the money go to real Floridians, the ones that call this state home," Caruso said before joining a unanimous vote in support of the House tax proposal. House Ways & Means Chairman Wyman Duggan noted that DeSantis didn't recommend the one-time property tax cut until after the House "rolled out the sales tax relief ." The House tax package also would reduce the commercial-lease tax from 2% to 1.25%, cut the sales tax rate on electricity from 4.35% to 3.6%, reduce the tax rate on sales of new mobile homes from 3% to 2.25% and trim the rate on coin-operated amusement machines, such as pinball machines, from 4% to 3.25%. Albritton has cautioned against making cuts that lawmakers might have to readdress within a couple of years. On Wednesday, he pitched the proposed sales tax elimination on clothes and shoes as being "where it can help the most number of Floridians." The Senate proposal also would direct the Legislature's Office of Economic and Demographic Research to study the effects of reducing or eliminating property taxes for homesteaded properties. Among other things, it would lead to holding a "back-to-school" tax holiday in August; a tax holiday on disaster-preparedness supplies in June; a tax holiday on recreational items in July; a tax holiday on tools around Labor Day; and a "hunting season" tax holiday in September and October on guns, ammo and other hunting supplies. The estimated $750 million package is expected to go to the Senate Finance and Tax Committee on Tuesday. The House and Senate budget proposals are below the $117.46 billion budget lawmakers passed last year before it faced DeSantis vetoes, mid-year adjustments and veto overrides. Senate Appropriations Chairman Ed Hooper, R-Clearwater, described the goal as "right-sizing" state spending. The House voted 98-6 to approve its proposed budget, which includes cuts in spending on agencies and programs. Democratic Rep. Felicia Robinson said the House should invest in programs that promote growth, as reducing services at a time the state has strong reserves will "lead to job losses, reduced public services and a less stable economy." "I understand us trying to be conservative, but doing anything to the extreme can be detrimental," Robinson said. The House and Senate agree on some issues, such as continuing to spend $80 million next year on the tourist-marketing agency Visit Florida. But they differ in other areas, such as the Senate proposing to spend $750 million for Everglades restoration and the House proposing $357 million. "Over the last 10 years the Legislature has appropriated nearly $4 billion for Everglades restoration. Of this amount, over $1.1 billion remains unspent, $900 million from the last two fiscal years," House Agriculture & Natural Resources Budget Chairwoman Rep. Tiffany Esposito said. "We believe it's fiscally responsible to reduce our appropriation of funds until the dollars we've already appropriated have been spent." Seeking to help the state's troubled citrus industry, the Senate would spend $200 million for research and to help packinghouses and growers, with $125 million included for new trees. The House has proposed $10 million to fight citrus canker disease, which has caused massive damage to the industry over the past two decades.
