The 2025 Florida TaxWatch Annual Report captures a milestone year: the culmination of Dominic M. Calabro’s decades of leadership and the announced transition to Lt. Governor Jeff Kottkamp as incoming President & CEO on January 1, 2026.

Since January 2025, the federal interest rate has remained unchanged at 4.25 to 4.5 percent. The rates have been steady in hopes of curbing inflation and bringing it down to two percent, as unemployment numbers were not concerning until now. The latest revision data, however, will likely push the Federal Reserve to cut rates in their next meeting this month to 4.00 to 4.25 percent.

New EDR projections show a widening state funding gap—more than $50 million in FY 2025-26—with total demand still trending upward through 2045.

With the Trust Fund projected to face a nearly $1.7 billion shortfall by FY 2029-30 without action, Florida TaxWatch outlines a pragmatic path that reduces costs by treating pain more effectively—not just shifting them to employees.

Florida's economy, valued at $1.76 trillion, entered 2025 on a strong footing but is projected to see its growth moderate to pre-pandemic levels over the next decade. This forecast from Florida TaxWatch indicates a shift from the high growth of recent years to a more sustainable, albeit slower, pace. While the state's population is expected to increase by 2.3 million by 2034, the rate of new residents moving to Florida is projected to decline, influenced by rising living costs.

Florida's property tax system is at a critical juncture, with total levies surging by 108% over the last decade, far exceeding the combined rate of population growth and inflation. This rapid increase, generating $55 billion in 2024 for local governments, has intensified the financial strain on homeowners and raised fundamental questions about the nature of property ownership, which currently resembles a form of "perpetual rent" to the government. This report from Florida TaxWatch analyzes the current landscape and explores five distinct options for reform, ranging from the complete elimination of property taxes for homeowners to more immediate statutory changes aimed at increasing transparency and accountability.

Construction is a cornerstone of Florida's economy, contributing $97 billion (5.7 percent) to the state's GDP in 2024. However, rising material costs are presenting significant challenges to the industry, impacting everything from large-scale infrastructure projects to residential home building and affordability for Florida taxpayers. This report from Florida TaxWatch examines the national and statewide trends driving these price increases and their potential consequences.

Florida TaxWatch’s The Taxpayers’ Guide to Florida’s FY2025-26 State Budget explains the Legislature’s $114.8 billion spending plan (after $376 million in line-item vetoes)—a 3.2% decrease from FY2024-25—while maintaining $12.6 billion in reserves. General Revenue (GR) spending rises by $556 million, and the recurring GR base increases by $1.9 billion, even as total positions fall to 111,886 (-1,871).

Apportionment Changes Amid Policy Proposals explains how Florida’s 2020 Census undercount—about 750,000 residents (3.48%)—reduced the state’s political representation and likely cost billions of dollars in federal funding over the decade. The report examines what Florida stood to gain if the count had been accurate and how proposed changes to who is counted could affect future apportionment.

Florida has proven ideas, demonstrated wins, and active tools; now it needs permanence. By embedding efficiency into the annual budget cycle—backed by transparent tracking and regular reporting—the state can convert sporadic initiatives into sustained savings and better service delivery for taxpayers.

Principals are second only to teachers in their impact on student learning—and in Florida’s highest-need schools, effective leadership is the catalyst for outsize gains. Florida TaxWatch convened a roundtable on May 14, 2025 with the latest Principal Leadership Awards (PLA) winners to surface the strategies behind sustained improvement. Drawing on data-driven selection (FL-VAM) and firsthand practice, this summary distills what works and why it matters for schools serving predominantly at-risk students.

Florida continues to face a severe affordability gap in housing. In 2022, 35% of households were cost-burdened, and by 2024 the state was short more than 323,000 affordable units for households at 0–30% of Area Median Income (AMI). The Legislature’s 2023 Live Local Act—amended in 2024 and 2025—was designed to accelerate supply by combining incentives (notably property-tax exemptions) with strong preemption and streamlined approvals for qualifying projects. The law requires that at least 40% of units in eligible projects remain affordable for 30 years, and it allows multifamily development in commercial, industrial, or mixed-use zones without rezoning, subject to administrative review.