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Budget Watch - The Governor’s FY2020-21 Budget and Tax Recommendations

Governor Ron DeSantis has released his $91.4 billion recommended spending plan for FY2020-21, providing a starting point for budget negotiations for when the next legislative session convenes on January 14, 2020. This could be considered his first recommended budget, since he released the last one less than a month after he took office, and agencies had submitted their budget requests three months before.

The Governor is proposing a relatively small spending increase of $418.7 million (0.5 percent). This is due in part to it containing $1 billion less in federal funds than in the current budget. General Revenue (GR) spending would increase by a little more than $1 billion. The proposed budget is only $347.8 million less than was requested by state agencies this fall and funds 980 fewer positions than requested.

Still, the Governor was able to work in significant spending for his top priorities, including $603.2 million to raise teachers’ starting salary and $634.7 million for water restoration and protection. His budget also recommends a net increase in state employee positions of 549 FTEs. 

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Florida TaxWatch Provides Analysis of the Governor’s Property Tax Amendment and Legislation, Recommends Florida Taxation and Budget Reform Commission Lead Debate

Florida TaxWatch Provides Analysis of the Governor’s Property Tax Amendment and Legislation, Recommends Florida Taxation and Budget Reform Commission Lead Debate

The Florida Legislature is meeting in special session to consider Governor DeSantis’ proposed constitutional amendment and linked legislation to provide significant property tax relief to Florida homeowners. The proposal has many provisions, but the main ones would increase the homestead exemption to $150,000, beginning January 1, 2027, and then increase it to $250,000, beginning January 1, 2028. This exemption will apply to all property taxes. In addition, the cap on the annual increase in the assessment of non-homestead properties would be reduced from 10% to 5%, but this change would not apply to school property tax levies. Any property taxes remaining after the changes would be restricted to being used solely for core services such as public safety, education, infrastructure, debt, and retirement benefits.

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