Florida GOP Legislature Aims to Bolster State Reserves Amid Financial Uncertainty
In this hurricane-prone state, Republican legislators say they are preparing to weather a political and financial storm. In other states led by Democrats, the moves by lawmakers could be labeled “Trump proofing.” But no matter the framing, Florida’s GOP-controlled Legislature is about to wrap up work on the state’s budget with a series of significant steps designed to shore up reserves and curtail spending.
The rationale given by Republican leaders includes everything from making the state’s budget resistant to a possible recession (without mentioning the economic impact of tariffs imposed by President Donald Trump) to acknowledging “uncertainty” associated with Congress and potential cuts to Medicaid, food aid and federal agencies responsible for helping with emergency efforts.
“Should we have the expectation that if the federal government is spending less to get their budget and debt under control that we should be held harmless? I don’t think it works that way,” said Senate President Ben Albritton (R-Wauchula.) “The question is: ‘Do I believe this budget prepares Florida for what could be coming out of the ‘DOGE’ cuts or just the changes that come out of Washington D.C.?’ And I would say yes.”
Lawmakers in Tallahassee got to this point following a protracted and bumpy session, during which legislative leaders clashed over spending levels and tax cuts. State House Speaker Daniel Perez (R-Miami) initially wanted to permanently lower Florida’s sales tax rate, but he encountered headwinds from Senate Republicans as well as Gov. Ron DeSantis. DeSanta contended the sales tax rate cut would benefit tourists and would undercut his push to cut local property taxes.
After being unable to come to a deal during their normal 60-day session, legislative leaders reached an accord late last week. The final deal calls for $2.25 billion in “revenue reductions,” but part of that total includes steering extra money into state reserves while also dedicating money to paying down existing debt. The Legislature also intends to pass a proposed constitutional amendment that would ask voters to permanently increase the size of reserves.
Perez said his push was less about tax cuts and more about paring back spending he asserts had gotten out of control during DeSantis’ time as governor.
But he also argued it would give Florida extra money that could be tapped into if another recession happens. During the Great Recession of the late 2000s, Florida Republican legislators resorted to large budget cuts, but they also drew down reserves and voted to raise taxes and fees to make up the difference
“None of us know what the future holds,