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.
“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.
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.
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.
TALLAHASSEE, FL — Late Friday, Florida lawmakers announced that they had reached an agreement on a budget that will ensure $2.25 billion is transferred to tax cuts and reserves. The agreement also lays out a plan for lawmakers to avoid a possible state government shutdown this summer.
A permanent decrease in the overall sales tax rate, which Gov. Ron DeSantis in the midst of a savage Republican dispute in Sunshine State.
In order to finalize a budget in June, Perez and Senate President Ben Albritton reached an agreement late Friday on top-line level spending levels. Albritton stated in a memo to senators that the goal is for lawmakers to begin budget conference meetings on Tuesday and work on the budget over the next two weeks before voting it out by June 16.
Albritton wrote, “The framework outlined in these allocations provides for a fiscally responsible, balanced budget that restricts the growth of state bureaucracy, lowers state spending, and lowers per capital spending.”.
The extent and scope of possible tax cuts, as well as the amount of spending that should be approved in the upcoming year, have been the subject of weeks of disagreement between Albritton and Perez. DeSantis and the Republican-controlled Legislature, according to Perez, had overspent in recent years.
The proposed agreement’s specifics, such as how much state tax money will go toward environmental, health, and educational initiatives, were not made public by the state House and Senate on Friday night. Albritton’s representative stated that those figures would be made public on Monday.
However, the deal asks the Legislature to cut “recurring revenue” by $2.25 billion, which includes doing away with the sales tax on business leases and what are being referred to as “permanent sales tax exemptions targeted toward Florida families.”. Albritton had suggested earlier in the year that sales taxes on apparel and shoes under $75 be permanently eliminated; however, this was not further explained.
But the $2.25 billion also includes $750 million for the state’s primary budget reserve and $250 million annually for debt repayment, which is another of DeSantis’s top priorities.
The leaders of the legislature also declared that they would ask voters to expand the state constitution’s required Budget Stabilization Fund. Currently, 10% of the net revenue received for the state’s primary budget account can be allocated to the fund. Legislators want voters to mandate that the state set aside $750 million annually until the fund’s authorized amount of 25 percent is reached.
The proposed amendment would appear on the ballot in November 2026. In the two years prior to the ballot measure being put to a vote, Perez and Albritton have committed to maintaining $1.05 billion in reserves.
The House first proposed a massive $5 billion permanent reduction in the state’s sales taxes, while the Senate first introduced wildly divergent spending plans with a $4 billion spending gap during their regular 60-day session.
Lawmakers were compelled to prolong the session past the customary 60 days because of their disagreement over the budget, even though it was originally scheduled to conclude in early May. On the day that was supposed to be the last day of the meeting, Albritton and Perez announced that they had reached an agreement to permanently lower the state sales tax rate and cut taxes by $2.08 billion.
However, after DeSantis threatened to veto the sales tax plan, claiming it would jeopardize the governor’s efforts to lower property taxes, that agreement fell apart. According to a memo written by Albritton earlier this month, many senators were also worried about the effects of such a significant cut. Perez responded angrily, accusing Albritton of betraying his word.
