The Florida budget came together gradually, then suddenly.
Lawmakers released the final product Friday, two weeks before a deadline that would’ve sent the state government into a never-before-seen shutdown.
But there’s still work to do. The Legislature is planning on meeting late Monday to officially vote on and pass the budget.
From there, it goes to Gov. Ron DeSantis, who has line-item veto power over things he doesn’t like.
Also on Monday’s agenda: a tax package that was a point of friction in negotiations between the House and Senate.
The road to these final votes was long and bumpy.
“We’re suffering from a lack of sleep,” said Senate Budget Chair Ed Hooper late Friday afternoon.
Monday will be day 105 of a session that usually lasts 60 days.
“We all come from different corners of this state with different experiences and different situations,” noted House Budget Chair Lawrence McClure. “And so that conversation took a little bit longer than expected.”
How did we get here?
A big point of contention between the chambers: permanent tax cuts.
For a while, House Speaker Daniel Perez called for an across-the-board sales tax reduction, costing $5 billion annually.
Eventually, leadership landed on a compromise: $2.5 billion in recurring tax cuts as a result of negotiations, with $1.6 billion in sales tax reductions.
The deal exploded when DeSantis said it was “going to be dead on arrival” if it reached his desk. In the aftermath, Perez accused Albritton of “breaking” his word.
The tax plan
That harsh rebuke came in mid-May, after the session should have been wrapped up.
Exactly a month later, the chambers unveiled the proposal expected to be voted on — and likely approved — Monday. It’s a $1.3 billion tax cut.
While the initial plans predominantly featured direct-to-consumer cuts, the brunt of the latest proposed tax package is geared at businesses.
For example, the biggest cut of the cuts — more than $900 million annually — goes toward nixing the sales tax on business rent.
“The notion that businesses don’t employ people that are a part of families is nonsense,” McClure said on Friday, after a reporter said the majority of the tax plan went to businesses, not families.
“If those tax breaks give relief to corporations to allow them to grow and prosper in Florida, that is good for the employees, the Floridians that work for those companies,” the House budget chair added.
The tax package also includes yearly tax holidays for hurricane and back-to-school supplies. There are also permanent tax exemptions set for bug spray, sunscreen, life jackets and more.
Floridians will have “more money in their pocket,” Hooper said.
“The tax burden will be less in some areas,” he continued. “I mean, nobody's going to get rich and go to have a European vacation. But look, it’s a smaller budget than last year.”
The budget and the future
That budget comes in at just over $115 billion, which is not only less than what passed last year but lower than what DeSantis pitched.
It cuts a long list of vacant job positions but gives a 2% pay raise for state employees. Further money is set aside for salary increases for workers like teachers and law enforcement.
A huge factor in this year’s spending decisions: state economists had projected billions of dollars in potential budget deficits in the years to come.
Lawmakers are expecting Florida to receive less federal funding in future years, with President Donald Trump in office and Republicans controlling the U.S. Congress.
That’s mixed with fears of a possible recession.
“Hopefully next year's Legislature and future legislatures will be the beneficiaries, where otherwise they would have been making equally if not more difficult decisions than we did this year,” McClure said.
Lawmakers are also moving to stockpile the state’s Budget Stabilization Fund with cash. Commonly called the "rainy day fund," it helps the state in the case of shortfalls.
Lawmakers also plan to vote on Monday to put a proposed constitutional amendment on the 2026 election ballot that would allow the state to put more money in that fund.
Florida last drew from that fund during the Great Recession.
Additionally teed up: a measure that would direct $250 million every year toward reducing the debt.
Will DeSantis be happy?
Over the last several months, DeSantis has been in a public feud with lawmakers, namely those in the House.
Shortly after Perez called for the sales tax reduction, DeSantis called for a one-time $1,000 property tax rebate.
How he’ll take the proposed tax package — and the budget overall — is a big unknown.
The governor did see victories in the appropriations, including $23 million for the Florida State Guard, an emergency response team he played a central role in reviving.
And while DeSantis can veto parts of the budget, a two-thirds vote by the Legislature can undo that.
If you have any questions about the state government or the legislative process, you can ask the Your Florida team by clicking here.
This story was produced by WUSF as part of a statewide journalism initiative funded by the Corporation for Public Broadcasting.
