Gov. DeSantis’ $115B proposed state budget and Florida’s special session: A closer look

February 10, 2023 — This Week’s Top Stories in Florida

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Gov. DeSantis’ $115B “Framework for Freedom” budget

Twitter.com via @GovRonDeSantis

Before a crowded room at the Florida Capitol last week, Gov. Ron DeSantis unveiled his $114.8 billion “Framework for Freedom” state budget proposal for the 2023–24 fiscal year. The proposal prioritizes spending for K-12 education, environmental protection, highways and roads, state employee salaries, and calls for $1.5 billion in year-round tax cuts while establishing $6.9 billion in General Revenue reserves. This surplus would deliver a total reserve fund of $15.7 billion and ensure the state will be able to weather a national economic downturn in the coming year, as many analysts predict while maintaining programs and delivering tax relief to Floridians. Everyday household and personal goods like toiletries, oral hygiene products, over-the-counter pet medications, gas stoves, and baby and toddler necessities like clothing, diapers, cribs, strollers, and baby wipes are covered under the governor’s recommended sales tax exemption. Also included is a 1-year sales tax exemption on children’s books, children’s toys, kid’s athletic equipment, pet food, ENERGY STAR appliances, and a so-called “household rescue year” that aims to reduce inflation impacts on households by excusing sales tax on consumer discretionary non-exempt products under $25. Qualifying items would include laundry detergent, toilet paper, hand soap, and trash bags, among others. Two back-to-school sales tax holidays are set to return under the governor’s proposal as are the 14-day hurricane preparedness and “Freedom Summer” sales tax holidays, with the latter covering outdoor recreation goods like tents, kayaks, and fishing rods over 15 weeks. The $1.5 billion in temporary and permanent sales tax exemptions as part of the “Framework for Freedom” budget adds to the $2 billion tax cut plan championed by Gov. DeSantis for families and the $500 million Toll Relief Program which began on January 1, 2023.

Education remains among the largest budget item in Gov. DeSantis’ 2023–24 proposal as he seeks to set aside $26 billion for public education, with over $14 billion directed to Pre-K through 12th-grade schools that would increase spending per student to the highest ever at $8,453. The plan also sets aside more than $400 million for school safety and mental health initiatives, $614.5 million to fully fund the Bright Futures Scholarship program, and the creation of a $100 million fund for higher ed institutions to attract “highly qualified faculty.” Florida’s voluntary pre-kindergarten program that provides free education to approximately 155,000 four- and five-year-olds across the state would receive $451 million to expand. DeSantis is also calling for an increase of $200 million in funding to boost teacher pay, which would result in about $20 a week for most instructional personnel, and he asks for a total of $4.6 billion in state operating funding for the state university and college system. In keeping with recent tradition, the governor wants no tuition increases at the state higher education institutions for residents. Florida’s four HBCUs are also receiving attention in the governor’s budget and would collectively receive $126 million, with over $95 million in operating funds earmarked for Florida A&M University. In addition, protecting and improving the environment is a priority for DeSantis with $1.1 billion to be used for projects designed to improve water quality, including $614 million for the Everglades and $370 million to reduce the negative impacts of toxic algae blooms as recommended by the Blue-Green Algae Task Force. Another $50 million would go toward the restoring two dozen natural springs in North Florida — $25 million less than currently budgeted if lawmakers approve the budget.

Just a few years ago, Florida’s 97,000 state workers were among the lowest paid in the nation, lagging well behind other states, but headway has been made by Gov. DeSantis in the last two years, in part due to the tight labor market and added pressure in the post-pandemic economy. That trend continues into the next budget cycle with the governor recommending $695 million to retain state personnel and recruit for important vacancies. This includes 5% pay raises for all state employees, a “historic” but unspecified increase for state law enforcement officers, boosting correctional officers to $23 per hour, and adding 10% increases to the statewide average for certain “hard-to-hire” positions. DeSantis’ ask also goes beyond salary increases as he seeks to increase employer contribution for employees in the Florida Retirement System (FRS) by an additional 3%, bringing the total contributions to 6% of the worker’s salary for retirement. Increasing pension benefits by 4% for retired FRS members to offset the inflationary spike is another highlight of the budget plan.

Another important feature of the DeSantis-backed budget request is a $13.4 billion allocation to the Florida Department of Transportation to move forward on road projects and accelerate infrastructure improvements across the state’s major roadways. Numerous healthcare initiatives are also funded in the proposal, which includes $143 million to enhance care for pregnant and postpartum women that improves outcomes for women at high risk for maternal morbidity. Another $531 million in funding will support behavioral health services via mental health treatment facilities, “competency restoration services,” and aid the 988 Suicide and Crisis Lifeline toll-free hotline. More than $166 million in funding will go toward cancer research, including $20 million to create the Florida Cancer Innovation Fund to support innovative research and practices that aims to elevate Florida’s edge in healthcare services. DeSantis has also turned his attention to the opioid crisis by calling for $334 million to provide treatment access, prevention services, recovery support, and medication treatment options. The tranche of state dollars will further research and activities that seek to reduce overdoses and addiction-related unemployment, hospitalization, and homelessness.

Gov. DeSantis’ multi-billion budget is not without controversy, however. Among the items requested is another $12 million to relocate migrants to Democratic cities across the U.S., similar to his action in August to fly 49 migrants from Texas to Martha’s Vineyard. DeSantis has defended this budgetary inclusion by claiming that the program has had a “deterrent effect” on migration to Florida. Additionally, the Republican governor is seeking to expand his newly-created Office of Election Crimes and Security by nearly three-fold, upping staffing levels from 15 current positions to 42. The office attracted criticism last year following the arrests of 20 previously convicted felons for voter fraud after voting in the 2020 election despite being ineligible. Evidence and interviews that followed revealed they were likely unaware they had committed crimes with intent.

The spending recommendation put forth by the governor will need approval by the State Legislature during the annual 60-day legislative session that begins March 7. The budget recommendations proposed by DeSantis will serve as the inception of negotiations between his office and lawmakers with changes likely to be made before the session’s conclusion in May. But if past history is any indication, the GOP-led Legislature will largely sign off on the governor’s $115 billion ask with little resistance expected from leadership in the House or Senate. In fact, during the budget process last year, DeSantis originally put forth a $100 billion state budget but lawmakers approved a $110 billion final spending plan, which the governor signed last June. The proposed budget totals nearly $5 billion more than last year’s $109.9 billion “Freedom First Budget,” which was $8.3 billion higher than the year before that. As recommended, the current budget total would mark a 26% growth in state spending since DeSantis became governor in 2019.

The state legislature’s two-week special session

Tori Lynn Schneider/Tallahassee Democrat

State lawmakers have convened in Tallahassee for a two-week special session less than one month before the regular 60-day legislative session begins. The last-minute meeting was called by House Speaker Paul Renner (R-Palm Coast) and Senate President Kathleen Passidomo (R-Naples) just three days prior to the start of the special session on Monday. Legislators will address a series of issues, which most notably, will include establishing state control of Disney’s Reedy Creek Improvement District, the governing jurisdiction and special taxing district that controls Walt Disney World Resort. Other topics tackled by lawmakers during the special session include additional funding for hurricane recovery, elections crime enforcement, immigration, and name, image and likeness deals in college athletics.

Last year, Gov. Ron DeSantis went on the offensive against Disney after they stood in opposition to the state’s controversial so-called “Don’t Say Gay” law, which prohibits lessons on gender identity and sexual orientation in grades K-3. In retaliation for the company’s pushback, lawmakers passed legislation last April during a special session that would dissolve the Reedy Creek Improvement District. The district enables Disney to control its 39 square miles of property and provide municipal services, including water, wastewater, electric utilities, solid waste, and recycling collection/disposal, emergency medical services, establish a fire department, and the ability to levy and collect property taxes. The Florida House of Representatives overwhelmingly passed the 189-page legislation that would overhaul Reedy Creek in an 82–31 vote before moving on to the Senate where it similarly passed 26–9. HB 9B was filed by Rep. Fred Hawkins (R-St. Cloud) and would not dissolve the taxing district, as was proposed last year by Gov. DeSantis and approved by lawmakers. Instead, the bill will change the governance of Reedy Creek by allowing the governor to appoint a five-member Board of Supervisors to oversee the district versus allowing Disney to hand-pick their governing body to those with close company ties. The change will also establish eligibility restrictions for board members by limiting anyone who has worked for or with a theme park or entertainment company in the last three years from serving. A state-appointed board, which would require Senate confirmation, would effectively end Disney’s self-governing status; however, the revised district would continue to have the same quasi-governmental authority that it currently possesses. This ensures the district retains “the authority necessary to generate revenue and pay outstanding indebtedness,” the bill reads, and that “no bond or other instrument of indebtedness previously issued by the district or any district project financed” through debt is affected by the passage of HB 9B. This includes Reedy Creek’s nearly $1 billion in outstanding municipal bonds that would have burdened the taxpayers of Orange and Osceola counties with the debt if the district was abolished. Additionally, the now-approved legislation discontinues the name “Reedy Creek” and replaces it with the “Central Florida Tourism Oversight District,” which would be in place after a two-year transitionary period. The bill now heads to Gov. DeSantis’ desk, where he is expected to sign it into law. Meanwhile, Walt Disney World Resort President Jeff Vahle said they are “monitoring” the legislation.

Also on the docket of Florida’s special session is a $700 million Hurricane Ian aid package that boosts recovery efforts by local governments. The vast majority of the dollars ($650 million) will be directed into the state’s emergency fund while the remaining $50 million creates an emergency bridge loan program for localities affected by Hurricane Ian last September and Hurricane Nicole last November. The loans are meant to maintain government operations or shift operations to “meet disaster-related needs.” SB 2B which cleared the House and Senate unanimously, was sent to the governor for his signature. Immigration is also a focal point of lawmakers as they seek to expand Gov. DeSantis’ controversial migrant relocation program by establishing an “Unauthorized Alien Transport Program,” per the proposed bill. SB 6-B by Sen. Blaise Ingoglia (R-Spring Hill) appropriates $10 million to the Florida Department of Emergency Management to transport any migrants, anywhere in the United States to sanctuary cities or a Democratic state. The bill aims to manage the influx of migrants to Florida by dissuading their arrival and repeals language in the state’s 2022 appropriations bill that set aside $12 million to move migrants throughout the U.S. The new program is intended to facilitate the transport of “inspected unauthorized aliens” to mitigate what lawmakers say is the federal government’s failed response to the immigration crisis and its unwillingness to address the negative repercussions of an unsecured border. Sen. Ingoglia said the money set aside can be used for flights, housing, food, and other necessities for migrants who volunteer to be relocated. Migrants will be offered to be transported to a sanctuary city or Democratic-controlled state, which Republicans say have the resources to accommodate migrants with their friendly immigration policies. Interestingly, Gov. DeSantis’ state budget proposal for 2023–24 had requested $12 million for migrant transportation — $2 million less than in the current legislation. Regardless, the bill passed the Senate in a 27–12 vote and was approved 77–34 by the House.

The special session saw the Florida House of Representatives move quickly to unanimously approve a bill that would repeal the state’s name, image and likeness (NIL) law in college athletics. HB 7B sponsored by Rep. Chip LaMarca (R-Lighthouse Point) passed overwhelmingly 113–0 and subsequently sailed through the Senate in a 34–0 vote. The bill will allow Florida to remain competitive with other states in recruiting talented college athletes to promote and profit off their name, image, and likeness. Since 2021, the state has restricted coaches and schools from providing NIL-related compensation toward players or arranging deals, which has had negative implications for recruiting athletes who seek to build their individual brands. The changes passed by the State Legislature will allow universities and coaches to take a more direct role in facilitating compensation deals — eliminating the competitive disadvantage Florida schools have been under since the NCAA made NIL rule changes in June 2021. With the impending signature of Gov. DeSantis, NCAA guidelines must still be followed by teams and coaches, including the prohibition of pay-for-play deals, restricting schools from compensating players directly, and the ban of using NIL offers to influence recruiting or retention of players.

The prosecution of election crimes remained a focus of GOP lawmakers during this week’s special session as Gov. DeSantis has vowed to crack down on voter fraud, including his approval last year of the controversial Florida Office of Election Crimes and Security. Lawmakers passed SB 4B in both chambers along party lines, allowing the Office of Statewide Prosecution (OSP) to handle cases of election crimes that occur in the state. The legislation seeks to address issues that arose following the high-profile arrests and the subsequent unsuccessful prosecutions of individuals for voter fraud last August. At the time, Gov. DeSantis announced the 20 arrests in a news conference in which he said the previously convicted felons voted in the 2020 election despite being ineligible to cast a ballot. Since then, the flawed cases have either been dismissed by judges or dropped by state attorneys altogether for lack of jurisdiction as it has been determined the OSP, who brought the cases, cannot prosecute crimes occurring within one judicial circuit. The changes by legislators broaden OSP’s prosecutorial authority to include any election crime involving voter registration, referendum and petition activity, voting in an election for a federal or statewide office, and voting-related crimes that occur in two or more judicial circuits. Therefore, if someone was alleged to have fraudulently voted for president or governor in the state, the OSP could investigate and prosecute the case. It is likely the state will try the voter fraud cases that were dismissed or dropped by prosecutors last year following the governor’s signature of the legislation. Florida’s statewide prosecutor, Nick Cox, is appointed by the state attorney general, currently Ashley Moody, a Republican.

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