House budget unveiled at $4.4 billion less than Senate, cuts revenues by slashing sales tax

Days after the Senate proposed its budget for consideration, House Speaker Danny Perez unveiled the fiscal plan prepared by his chamber.

The budget is $112.95 billion, about $4.4 billion below the Senate’s proposed budget and $2.7 billion less than Gov. Ron DeSantis’s proposal. Perez said the fiscally hawkish budget would cut wasteful spending and help everyday Floridians by slashing state sales taxes.

“So often when politicians talk about improving affordability, our strategies involve spending money on more government programs. We have forgotten a fundamental truth; tax dollars don’t belong to the government, they belong to the people,” Perez said.

“This year, we’re flipping the script by giving the people of Florida their own money back to them. This budget reflects our chamber’s values of conservative fiscal stewardship and accountability. This budget also reflects decisive action to rein in recurring spending and refocus on the true needs of everyday Floridians. By reducing unnecessary expenditures and cutting wasteful spending, we are ensuring that taxpayers see more of their dollars at work for them — and back in their pockets, too.”

The signature tax savings in the House budget come from cutting the state sales tax from a current 6% to 5.25%. But that approach differs from what DeSantis has called for or that Senate President Ben Albritton has endorsed. DeSantis has pushed for the elimination of Florida property taxes, a different approach, while the Senate has only said it’s open to considering structural tax change at some point.

As for spending, the House budget wants to put $12 billion back to state reserves.

The budget provides $100 million for “veteran teachers” after years of DeSantis pushing to increase starting pay to recruit new teachers. The budget fully funds Bright Futures and increases per student investment by an additional $60, and sets aside $765 million for maintenance and capital programs supporting education from kindergarten through undergraduate higher education.

The environmental budget sets aside $300 million for rural and family land conservation, $200 million for the Resilient Florida Conservation grand program and $600 million for drinking water initiatives.

In justice spending, the budget provides $55 million for facility repairs and maintenance and another $14 million for county and circuit judges and pay adjustments for State Attorneys’ and Public Defenders’ offices.

House appropriators include $285 million for affordable housing programs and the Hometown Hero housing program, which assists first-time homebuyers with startup costs.

Meanwhile, the budget preserves KidCare and Medicaid funding and backs up 81% of the costs of an Intellectual Development Disabilities Pilot program.

The budget comes in $6 billion under the current budget year.

“Our subcommittee chairs and members have worked tirelessly to scrutinize every dollar in this budget, identifying real savings and making responsible choices for the future of our state,” said House Budget Chair Lawrence McClure, a Dover Republican.

“For the first time since the Great Recession, this budget will spend less than the previous year’s – an unprecedented step toward restoring true fiscal discipline. As a part of that commitment, we are taking a firm stance against DEI initiatives by ensuring that every entity receiving state funds upholds Florida’s values of individual freedom and equal opportunity rather than promoting divisive ideological agendas. Special interests may claim otherwise, but the truth is clear: We are prioritizing the needs of Floridians above all else. This is a budget that truly puts the people first.”

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