Property tax cuts, sales tax cuts, spending for schools and health care programs all remain in limbo for next year as legislative budget negotiators are still at odds.
And the impasse between the House and Senate means lawmakers will go into overtime on the 60-day legislative session to pass a budget – the only constitutionally-required job of the Florida Legislature each year.
In the meantime, they have passed only 53 of the almost 2,000 bills that were filed for this year. The session had been scheduled to end May 2.
“We are all familiar with the timelines for getting the budget on the desk and concluding session on time,” Senate President Ben Albritton, R-Wauchula, told members on the floor April 24. “It’s clear at this point, those timelines have come and gone.”
The main sticking point is overall spending, including how much to cut in taxes. House and Senate negotiators need to agree to a topline number on that before formal talks on the rest of the state’s spending can begin. Lawmakers must have a budget in place by April 29 to meet the state constitution’s required 72-hour “cooling off period” before they can vote on the budget.
The House’s tax cut plan is centered on a reduction in the sales tax, from 6% to 5.25%, and would cut about $5.5 billion in taxes, with about $5 billion being state revenues and the rest coming from local governments. The Senate’s plan is about $2.2 billion, and would eliminate the sales tax on clothing items worth $75 and less, in addition to the sales tax holidays the Legislature has routinely passed in recent years, such as on back-to-school items.
Rep. Lawrence McClure, R-Dover, the House’s chief budget negotiator, said the House had made good faith offers to the Senate but a gap in overall spending and cuts remains. “There’s a philosophical discussion. We in the House believe that we don’t need to spend as much money,” McClure told a reporter April 23.
The budget passed by the House earlier in the month is less than $113 billion. That’s about $4.4 billion less than the Senate’s spending plan and $5.6 billion less than the current budget.
House and Senate members have said they’re wary of a potential shortfall of $7 billion in two years as state economists project if current spending trends continue. Albritton stressed again April 24 that he doesn’t want to slash taxes by so much that it hands a shortfall to future legislatures.
“Make no mistake about it, I am committed to passing historic, unprecedented tax relief. However, it won’t be at the expense of the long-term financial stability of our state,” Albritton said.
He noted that major programs would suffer if heavy cuts were imposed: “The free state of Florida is still growing, and growing quickly. There is a cost associated with maintaining our transportation, clean water, and health care infrastructure, ensuring universal school choice for every family, hurricane response and recovery, Everglades restoration and of course, public safety.”
In talks between the chambers, McClure said the House had moved closer to the Senate position, and made an offer in the afternoon of April 23. Later that evening, the Senate made a counter offer of $2.8 billion in tax cuts, which when local taxes are included would come to more than $3 billion.
The Senate offer added shoes to its permanent elimination of sales tax on clothing valued at $75 or less, included a reduction in the business rent tax from 2% to 1%, had a one-time credit for vehicle registration fees and a set of sales tax holidays for back-to-school items, disaster preparedness items, tools and outdoor goods throughout the year.
Albritton said he is still working with House Speaker Daniel Perez, R-Miami, and called him a “strong and dedicated” partner. “We all know time is running out on this session. I hope to have further updates for you early next week,” he said.
Gray Rohrer is a reporter with the USA TODAY Network-Florida Capital Bureau. He can be reached at grohrer@gannett.com. Follow him on X: @GrayRohrer.
This article originally appeared on Tallahassee Democrat: State budget deadlock forces Florida Legislature into overtime