Week 5

After Delay, House & Senate Finally Release Budget Proposals

House — $113.6 Billion    Senate — $115.0 Billion

As the Session passed its mid-way point this week, there was no budget proposal, no property tax plan, no tax package, and the Legislature has only passed two bills. Priority legislation from each chamber, passed early in the session, is languishing in the other. Despite positive words from leadership, there appears to be significant disagreement on many issues.

As this week came to a close, it seemed the first look at a proposed state budget would have to wait another week. After two House subcommittees had no budget discussion, the Senate budget chair issued a memo saying they would not be releasing the budget before next week, but “our goal remains to roll out our budget in concert with our House partners.” The House scuttled that plan when it released its budget after 5:00 on Thursday (no legislative activity on Friday). The Senate responded later Thursday night, saying they would release their budget on Friday. The budget process so far has been unusual, to say the least.

The House budget totals $113.6 billion, $1.4 billion less than the Senate and $1.2 billion (1.1%) less than current spending. It is also $3.8 billion (3.2%) less than the Governor’s recommendation. The Senate’s $115.0 billion budget is a very slight increase over current spending. Surprisingly, both chambers propose to increase General Revenue spending from the current level. The Senate proposes a 4.0% GR increase.

The House proposes to increase per-student public school funding by 2.7%, paid for mostly with state funds, thanks to a reduced school property tax millage rate. The Senate’s per-student increase is only 1.6%, and it keeps the same millage rate.

After Appearing Dead, New House Bill May Save Emergency Fund

On Wednesday, the Senate passed SB 7040 to re-create the Emergency Preparedness and Response Fund, which is slated to terminate at midnight on Monday. The Fund was created in 2022 to provide the Governor with funds to spend on declared emergencies. Nearly $5 billion has been spent through the Fund. The bill passed despite objections that the Fund lacked adequate controls and concerns over the amount spent on non-natural disasters (immigration enforcement). Just as it appeared the House would not act and the fund would end, the House budget was released late Thursday along with legislation recreating the fund retroactive to February 17. The bill restricts the Fund’s use to natural emergencies and adds accountability and transparency provisions.

Legislation Advancing this Week

• SB 1556 requires city and county utilities to reinvest utility revenue back into the system, as recommended by Florida TaxWatch. It also requires utilities to, every 5 years, develop a budget forecast and strategies that ensure continuous maintenance and improvements to provide optimal service at consistent rates.
• HB 1177 creates a sales tax exemption for tangible personal property, including machinery and equipment, that is leased by Space Florida to private entities. It also extends the governmental property tax exemption to property being used by a private lessee pursuant to a project authorized by Space Florida.
• SB 428 expands eligibility for the Swimming Lesson Voucher Program which provides free swimming lessons to eligible low-income children.
• SB 302, supported by TaxWatch research, directs the Department of Environmental Protection to develop, by 2027, design standards and a rule-based statewide permitting process for green infrastructure and nature-based coastal resilience projects and encourages local governments to promote and implement these solutions.
• HB 561 streamlines reinstatement for educators with expired professional certificates, providing teachers with a faster process for returning to the classroom.
• SB 1706 expands the My Safe Florida Condominium Pilot Program to all condo properties in the state but tightens eligibility by requiring the condos to have been built before 2008 and at least 80 percent of the units are occupied by a person or family whose income is 80 percent or less of the area median income.
• SB 1028 is attempting to remove more policies from state-run Citizens Property Insurance Corporation, to continue to return it to the insurer of last resort. The bill creates a commercial line clearinghouse that would allow surplus lines insurers to offer Citizens policyholders alternative coverage. If the policyholder is offered equal or better coverage at less than 120% of their current premium, they must accept the new policy or pay Citizens the difference.
• HB 767 would require residential property insurers, when requesting a rate increase, to submit a consumer-friendly rate transparency report, including a clear breakdown of reinsurance costs, claim costs, defense expenses, and other fees or profits. The state would be required to maintain a consumer resource center online.
• SB 78 provides for a 2-year refund period for sales and use tax paid for “home hardening products”—impact-resistant doors, garage doors, and windows. Only homestead residential properties valued at less than $700,000 are eligible.
• HB 311 creates a corporate and insurance premium tax credit for employer contributions to employees’ home purchases. Credits are limited to $5,000 per employee and $500,000 per employer.
• HB 665 creates a sales tax exemption for motor vehicles sold to 100% disabled veterans.