The Appropriation Committees of the Florida House and Senate passed their proposals to fund the state government for FY 2016-17. The gap between the two chamber is $1.58 billon. Both proposals are greater than the budget submitted by Governor Rick Scott.
The House spending plan totals $79.98 billion. This is $1.58 billion more than current spending and $730 million more than the Governor recommended. The Senate budget totals $80.97 billion, $1 billion more than the House.
Major differences include:
Taxes– The House Finance and Tax Committee has approved a “$1 billion†tax cut package. The impact to state revenue in the upcoming budget year is only $305.6 million, but much more in future years. The Senate has not released a complete tax package but its budget contemplates much less in tax cuts.
Trust Fund Sweeps– The House budget would take $402 million from trust funds to shore up available General Revenue, including $172 million from affordable housing and $79.5 million from economic development. The Senate budget sweeps $120 million (none from housing or economic development.)
Public Education Capital Outlay (PECO)– The Senate provides $369 million for education fixed capital outlay, the House provides $474 million. The biggest difference is the House gives $90 million to charter schools, the Senate does not provide charters any PECO funding.
Economic Development Tools – Gov. Scott recommended a $250 million fund to use to incentivize business to invest in Florida—in addition to $38 million in current economic development “tools.†The Senate provides $250 million, but that includes all tools. The House only provides $18 million.
Environmental Funding– The two chambers are about $200 million apart, with the House spending more on Everglades restoration and land acquisition and the Senate spending more on springs restoration.
Public School Funding– While the two chambers are close on per-student funding, how to pay for that (state revenue vs. local property taxes) may become an issue.
Florida TaxWatch has on its website a full update of the sales tax exemption for manufacturing machinery and equipment permanent, business rent tax reduction,funding for seaports, Department of Transportation funding , pre-arrest diversion programs, and expanding registered nurse and physician assistant scope of practice.
