TALHASSEE – Lawmakers will not be able to negotiate a new state budget in time to close the legislative meeting scheduled for next week as the Senate and House of Representatives are unable to reach a tax cut and spending agreement.
Senate President Ben Albritton, R-Wauchula, and House Speaker Daniel Perez, R-Miami, told members Thursday afternoon that leaders have not reached an agreement on the important first steps needed to begin formal budget negotiations. This includes what is known as “allocation.” This is the overall amount that will be donated to various areas of the budget, such as education and healthcare.
Lawmakers will need to finish budget preparation by Tuesday to close the session scheduled for May 2nd. This is because a constitutional 72-hour “cooling-off” period is required before the spending plan is approved.
“We are disappointed to report that we have not yet reached an agreement on the allocation with the house,” Albritton said.
The House and Senate passed budget proposals this month with a gap of over $4 billion. The House proposal totaled $112.95 billion, while the Senate weighed $1173.6 billion.
Perez gave a furious speech on Thursday, saying that Congress has been “crazy about spending” in recent years, and that the Senate fight is willing to approach the House’s lean budget proposal.
“The Senate’s hope is that the House should adopt the Senate budget with only minor changes,” Perez said. “Not only is it unacceptable, it’s also loved.”
Albritton and Perez told lawmakers they could return home this weekend as official budget meetings are not being launched. It was not immediately clear whether the leader would extend the session after May 2nd, or whether he would later return lawmakers to complete the budget.
“We are not moved by threats, time or ultimately,” Perez said of the home.
As leaders have worked behind the scenes to start the process of retraction meetings, a huge difference is focused on tax cuts.
The House has proposed a tax package totaling about $5 billion (HB 7033), with the cuts being largely attributed to plans to permanently lower the state’s sales tax rate from 6% to 5.25%.
The Senate proposed a $1.83 billion tax cut package (SB 7034) that includes elimination of sales taxes for clothing and shoes under $75. It also offers a one-time credit for annual vehicle registration fees and a series of sales taxes “holidays” including new ones that last for more than three months on hunting equipment.
Meanwhile, Governor Ron Desantis is pushing for property tax cuts.
Albritton said Wednesday the Senate provided the House with a repeat tax cut of $1.3 billion, primarily through clothing and shoe sales tax cuts, as well as a one-off cut of $1.5 billion. He said the Senate is worried about making deeper repeat cuts due to potential shortages in the future.
“Cutting taxes is hardly going to work if they have to lift on the roads,” Albritton said. “Reducing waste and inefficiency plays a serious and important role in government liability expenditures at all levels.”
However, Perez said the House concluded that the state should cut taxes to curb spending.
“The best way to solve your spending problem is to remove the temptation to spend,” Perez said.
Albritton has indicated that the Senate has agreed to the House’s proposal to cut taxes on commercial leases from 2% to 1%.
“I appreciate their perspective and praise their resolve to pursue a better government, and I have great respect for the speaker and his entire team,” Albritton said. “At the end of the day, I’m just uncomfortable with the suggestions that seem likely to lead to shortages in the out-year period, if not a significant shortage.”
A panel of economists known as the Revenue Estimation Council warned lawmakers in March that “uncertainty exists” in their economic model.
The panel has raised its general revenue forecast for the current fiscal year and next year to around $1.3 billion. However, in the report’s enforcement summary, the panel pointed to “weak” states and national economic variables, saying “the forecast environment is much more stable in the short term than in the summer. From this point onwards there is even more economic uncertainty.”
Lawmakers must pass the budget prior to the commencement of July 1st of the 2025-2026 fiscal year. Desantis also has the power to veto line items over budgets.
Jim Turner and Jim Sanders, Florida news service
