SINE DIE - 2023 Florida Legislative Session is Over
New state budget is $117 billion, but that is not all
of the spending
The budget conference came to
agreement on the new state budget on Monday, ending the process--as has become
standard--by tacking on $670 million through the sprinkle lists. The conference added
considerable funding to the budget. Negotiations began with
a $113.0 billion House budget and a $113.7 billion Senate budget. The budget now stands at $117.0 billion. This does not include more than $6.0 billion appropriated in the
"back of bill," technically appropriated for the current fiscal year
so it does not count in the budget total. The Legislature appropriated another
$1.5 billion in other substantive bills.
This spending brings unallocated general revenue reserves down to $5.3
billion. While still at a high level, these reserves were previously
estimated to be $15.7 billion at the end of the current fiscal year.
Budget highlights include pay
raises for state employees and teachers, a $350 million education reserve fund
to compensate public schools for higher than anticipated use of the new voucher
program, $300 million to address sea level rise, increased Medicaid
reimbursement for nursing homes, pediatric physicians, and other providers, and
a $350 million hurricane recovery grant program.
$1.3 billion tax relief package
include a reduction in the Business Rent Tax
Including many of the tax relief proposals recommended by
Governor Ron DeSantis back in February, the Legislature passed a $1.3 billion tax
relief package that is focused on helping families. It includes several sales
tax holidays and exemptions for baby and toddler products, oral hygiene
products, gas stoves and energy star appliances, and much more.
The bill also includes a full one percentage
point reduction in the Business Rent Tax rate, a top priority and longtime
recommendation of Florida TaxWatch, which will place Florida companies and
taxpayers in a more competitive position, reduce overhead costs for thousands
of small businesses, and ultimately grow our state’s economy. The bill also
places a three-year freeze on the local communications services tax – consistent with another Florida
TaxWatch recommendation and a significant step in the right direction to
relieve nearly all Florida families and businesses from this burdensome and
highly regressive tax.
While there were many issues in this session
that had clear partisan divides, nobody was complaining about the two big
fiscal measures. The budget and the tax
package both received unanimous votes.
Other Legislation
Early in the session, the Legislature passed major legislation dealing
with school choice, housing, tort reform, and the creation of a wildlife
corridor.
This last week saw passage of a data privacy bill that, while still
containing some potential concerns, is a much better bill than the versions considered
in the last two sessions. Many of the
problems highlighted by Florida TaxWatch have been addressed. The effective data of the bill was delayed
until July 1, 2024, so this debate is likely not over. Enterprise Florida and many other economic
development programs and incentives were eliminated. VISIT FLORIDA was saved, as recommended by
Florida TaxWatch.
Other bills Florida TaxWatch followed passed in the last week including
expanding telehealth, increasing eligibility for KidCare, strengthening problem
solving courts. A bill prohibiting the
application of credit card “swipe fees” to sales taxes died on the calendar in
both chambers.