TALLAHASSEE, Florida — In this hurricane-prone state, Republican legislators say they are preparing to weather a political and financial storm.
In other states led by Democrats, the moves by lawmakers could be labeled “Trump proofing.” But no matter the framing, Florida’s GOP-controlled Legislature is about to wrap up work on the state’s budget with a series of significant steps designed to shore up reserves and curtail spending.
The rationale given by Republican leaders includes everything from making the state’s budget resistant to a possible recession (without mentioning the economic impact of tariffs imposed by President Donald Trump) to acknowledging “uncertainty” associated with Congress and potential cuts to Medicaid, food aid and federal agencies responsible for helping with emergency efforts.
“Should we have the expectation that if the federal government is spending less to get their budget and debt under control that we should be held harmless? I don’t think it works that way,” said Senate President Ben Albritton (R-Wauchula.) “The question is: ‘Do I believe this budget prepares Florida for what could be coming out of the ‘DOGE’ cuts or just the changes that come out of Washington D.C.?’ And I would say yes.”
Lawmakers in Tallahassee got to this point following a protracted and bumpy session, during which legislative leaders clashed over spending levels and tax cuts. State House Speaker Daniel Perez (R-Miami) initially wanted to permanently lower Florida’s sales tax rate, but he encountered headwinds from Senate Republicans as well as Gov. Ron DeSantis. DeSantis contended the sales tax rate cut would benefit tourists and would undercut his push to cut local property taxes.
After being unable to come to a deal during their normal 60-day session, legislative leaders reached an accord late last week. The final deal calls for $2.25 billion in “revenue reductions,” but part of that total includes steering extra money into state reserves while also dedicating money to paying down existing debt. The Legislature also intends to pass a proposed constitutional amendment that would ask voters to permanently increase the size of reserves.
Perez said his push was less about tax cuts and more about paring back spending he asserts had gotten out of control during DeSantis’ time as governor.
But he also argued it would give Florida extra money that could be tapped into if another recession happens. During the Great Recession of the late 2000s, Florida Republican legislators resorted to large budget cuts, but they also drew down reserves and voted to raise taxes and fees to make up the difference
“None of us know what the future holds,” said Perez. “When we had a recession, the state of Florida was not prepared for that recession. We began to scramble. … We did not have the money that was necessary to protect Floridians. After this bill passes we will be in a better place.”
Florida currently has billions in reserves, including a mandated “Budget Stabilization Fund.” They were able to reach that point because the state’s economy grew in the aftermath of the Covid epidemic, while Florida was also flush with billions that came from Congress as part of massive aid packages.
Lawmakers are still tinkering with the current budget, but they are expected to land on a final total this month that puts overall state spending below the amount spent during the current fiscal year that ends on June 30.
The Legislature is also taking steps to claw back billions in unspent money. On Thursday, lawmakers sent DeSantis a bill that would free up $2.1 billion that Florida had set aside three years ago to assist private insurance companies struggling with backup financing due to the state’s property insurance crisis. The money would have eventually reverted back to the state’s main budget account, but legislators decided to speed that up.
As the session has gone on, top Republicans have initially side stepped questions about how much federal grant money state universities lost due to cuts pushed by Elon Musk and the Department of Government Efficiency efforts. Likewise, there has been little debate or discussion about potential impacts to other programs that are heavily reliant on federal aid such as Medicaid.
Florida is also still waiting on money it previously requested from the Federal Emergency Management Agency in response to a flurry of hurricanes that have ripped through the state in recent years.
“There may not be a FEMA next year, none of us know that,” state Senate budget chief Ed Hooper (R-Palm Harbor) said while defending the legislative proposal to set aside extra money for the reserves.
Under the current plan legislators will set aside $1.5 billion over the next two years that will eventually roll into the “Budget Stabilization Fund” if voters ago along with the idea of increasing the size of that reserve.
Some Democrats — who contend the state already doesn’t spend enough on teachers, health care and other programs — raised questions this week about the efforts to put money away in a “lock box,” questioning how easily the Legislature could tap into the fund. The proposal going before voters says the state could withdraw money fund for a “critical state need,” even though that term isn’t defined.
“It’s important to have flexibility because you never know what will come your way,” said state Rep. Christine Hunschofsky (D-Parkland).
But Republican legislators backing the idea said they wanted to make sure the money was only used to deal with a financial crisis or emergency for the state.
“We are doing this so we are truly prepared for a break-the-glass situation,” said Rep. Lawrence McClure (R-Dover), the House budget chief.
