On Friday, House Speaker Daniel Perez revealed a fiscally conservative budget proposal of $112.95 billion for Florida, positioning it as a more restrained spending plan than those proposed by both Governor Ron DeSantis and the Florida Senate.
- Why this matters: The House budget comes in $4.4 billion below the Senate’s proposal and $2.7 billion less than DeSantis’s plan.
“So often when politicians talk about improving affordability, our strategies involve spending money on more government programs. We have forgotten a fundamental truth; tax dollars don’t belong to the government; they belong to the people. This year, we’re flipping the script by giving the people of Florida their own money back to them.” —Speaker Perez
Sales Tax Cut
The budget’s signature feature is a proposed reduction in the state sales tax from 6% to 5.25%, which Perez characterized as giving taxpayers back their own money. This approach differs significantly from DeSantis’s push to eliminate Florida property taxes and the Senate’s more cautious stance on structural tax changes.
- The fiscally hawkish budget aims to put $12 billion back into state reserves while also cutting overall spending by $6 billion compared to the current budget year. House Budget Chair Lawrence McClure described the reduction as “an unprecedented step toward restoring true fiscal discipline” not seen since the Great Recession.
Education Priorities Shift to Veteran Teachers
Education funding includes $100 million specifically for “veteran teachers” with at least two years of full-time teaching experience in Florida public schools. This marks a shift from Governor DeSantis’s recent focus on increasing starting salaries to recruit new teachers. The budget fully funds the Bright Futures scholarship program and increases per-student investment by an additional $60.
Environmental Conservation
Environmental initiatives receive substantial funding, with $300 million earmarked for rural and family land conservation—$50 million more than the Senate’s proposed budget. Additionally, the House allocates $200 million for the Resilient Florida Conservation grant program and $600 million for drinking water initiatives.
Justice System and Healthcare Funding
The justice system would receive $55 million for facility repairs and maintenance, with an additional $14 million allocated for county and circuit judges and pay adjustments for State Attorneys’ and Public Defenders’ offices. The budget preserves funding for healthcare programs, including KidCare and Medicaid, and supports 81% of the costs for an Intellectual Development Disabilities Pilot program.
Bad News: Affordable Housing Sees Reductions
On affordable housing, the House budget includes $285 million for various programs, including the Hometown Heroes initiative. However, this represents a significant reduction compared to both the Senate’s and Governor’s proposals. The House wants to allocate just $50 million for Hometown Heroes, while the Senate proposed $150 million, and DeSantis recommended $100 million.
Next Steps
The House and Senate must reconcile their differing budget priorities before sending a final proposal to Governor DeSantis for approval.