News Summary
Florida lawmakers have approved a budget of $115.1 billion for the upcoming fiscal year, which includes significant tax cuts and funding for education and environmental initiatives. Despite bipartisan support, some representatives voiced concerns about unaddressed issues in the budget. The new spending plan reflects a reduction from the previous year’s budget and aims to balance economic growth with fiscal responsibility, amid discussions of potential future federal funding cuts.
Tallahassee, Florida – Florida lawmakers have approved a $115.1 billion budget for the 2025-2026 fiscal year, concluding a contentious legislative session that ran over six weeks past its original end date of May 2. The state Senate passed the spending plan, known as SB 2500, unanimously, while the House approved it with a vote of 103-2. The finalized budget will take effect on July 1, 2025, but it is subject to potential vetoes by Governor Ron DeSantis.
This budget reflects a decrease of approximately $3.5 billion compared to the current fiscal year’s budget and is also smaller than DeSantis’ proposed budget of $115.6 billion introduced in February. Key components of the budget include a $1.3 billion package of tax cuts, a long-sought goal for business advocates, especially the elimination of the commercial-lease tax.
House Speaker Daniel Perez described the session as “a long and winding road,” noting the challenges lawmakers faced in reconciling their differences on budget allocations and tax breaks. Tensions between House leadership and the Governor emerged over various issues, particularly concerning property tax rebates, which Senate President Ben Albritton hopes to revisit in the 2026 session.
In addition to tax cuts, the approved budget entails provisions for debt repayment and pay raises for most state employees. Lawmakers allocated $580 million for debt repayment and mandated a $250 million annual repayment of state bonds. Furthermore, all state employees are set to receive a 2% pay increase, while law enforcement and firefighters might see increases of 8% to 13%.
Education funding also saw an increment, with per-student funding increasing by 1.59%, from $8,987.67 to $9,130.41. This financial support aims to continue enhancing the quality of education in Florida’s schools. The budget also earmarks significant funds for environmental initiatives, including $691.5 million for Everglades restoration and $675.2 million for water improvement projects, alongside $170 million dedicated to flood and sea-level grants.
Despite the overwhelming support for the budget, some dissent emerged, particularly from the two representatives who voted against it. One lawmaker labeled the budget a “missed opportunity” for working families, emphasizing that several beneficial issues were overlooked due to legislative conflicts.
The tax package passed alongside the budget (HB 7031) features provisions for an annual tax holiday for back-to-school items, alongside sales tax exemptions for essential goods such as hurricane supplies, sunscreen, and admissions to state parks. Additionally, a new implementing bill (SB 2502) will empower the governor’s Office of Policy and Budget to review local government budgets, a move that has drawn criticism from some lawmakers.
The legislative session concluded with indications that concerns exist regarding potential future federal funding cuts, particularly in essential programs like food stamps and Medicaid. Against this backdrop, a proposed ballot measure for 2026 aims to increase the rainy-day reserve fund ceiling from 10% to 25% of general revenue collections, with $750 million anticipated to be set aside for the next two fiscal years, contingent on voter approval.
As the state prepares for the upcoming fiscal year, the new budget signals Florida lawmakers’ ongoing efforts to balance economic growth with fiscal responsibility. While the implications of the approved budget will unfold in the coming months, the decisions made during this legislative session reflect a complex interplay of priorities within the state.
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Additional Resources
- Tallahassee.com: FSU’s Board of Trustees Approve $2.97B Operating Budget for 2025-26
- Wikipedia: Florida State University
- WTSP: Florida TaxWatch Spending Plan Lawmakers Pass State Budget
- Google Search: Florida state budget
- Tallahassee Reports: Lawmakers Pass $115.1B Budget, End Session
- Google Scholar: Florida budget 2025
- Tallahassee.com: New Florida Budget Beefs Up Reserves
- Encyclopedia Britannica: Florida budget
- Tallahassee.com: Florida Legislature Budget Vote
- Google News: Florida legislature budget
