Florida Legislature Agrees on Budget Framework with $2.8B Tax Cuts

Introduction to the Budget Agreement

The Florida legislature has agreed on a "framework" for a budget deal, which includes $2.8 billion in tax cuts. This agreement was announced by House Speaker Daniel Perez and Senate President Ben Albritton on the final scheduled night of a contentious 60-day legislative session.

Details of the Budget Deal

The budget for the 2025-2026 fiscal year will total less than Gov. Ron DeSantis’ proposed $115.6 billion spending plan, though the exact amount was not specified. The tax-cut package will include a reduction of the state’s 6 percent sales-tax rate, a priority for Perez.

Reaction from Lawmakers

Perez acknowledged the difficulties and challenges the extension of the session presents, but believes it is better to take the time to get the budget right rather than rushing through it. Albritton emphasized the importance of safeguarding taxpayer dollars and improving accountability, transparency, and oversight of government spending.

The Legislative Process

During the extended session, lawmakers will focus solely on the budget and related bills. This means that many other bills that did not pass during the 60-day session will not be considered. Lawmakers need to pass a budget before the start of the fiscal year, and DeSantis has line-item veto power before the budget takes effect.

History of Budget Disagreements

The House and Senate have been at odds over the budget and tax cuts for weeks, with leaders holding talks behind the scenes to try to work out their differences. This is not the first time lawmakers have disagreed on the budget, with Sen. Don Gaetz noting that it is their obligation to agree on a budget before the end of the fiscal year.

Previous Sessions

Other sessions have had acrimonious endings, such as the 2011 standoff between then-House Speaker Dean Cannon and then-Senate President Mike Haridopolos. Sen. Gayle Harrell, who has seen sessions deteriorate in the final hours, noted that this session is "probably the most tense in the last week that I’ve seen."

Conclusion

The agreement on a budget framework is a significant step forward, but there is still much work to be done. Lawmakers will need to come together to finalize the details of the budget and tax cuts, and DeSantis will have the opportunity to review and veto certain line items. The outcome of this process will have a significant impact on the state’s finances and economy.

FAQs

1. What is the total amount of tax cuts included in the budget deal?
   • $2.8 billion
2. What is the proposed reduction in the state’s sales-tax rate?
   • The exact reduction is not specified, but it is a priority for Perez to reduce the 6 percent sales-tax rate.
3. When will lawmakers return to the Capitol to negotiate the details of the budget?
   • The week of May 12
4. What is the deadline for passing a budget?
   • Before the start of the fiscal year, which is July 1
5. Does DeSantis have any power over the budget after it is passed?
   • Yes, he has line-item veto power before the budget takes effect.