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June 27, 2025 | Legislative Reporter On June 16, after six weeks of overtime and uncertainty, Florida’s legislators passed the 2025-2026 state budget SB 2500 and adjourned sine die. The final budget totals $115.13 billion, including $560 million in supplemental funding for local projects. This year’s budget represents a $3.8 billion reduction from the previous year and reduces the size of state government by nearly 2,000 positions. Despite the reductions, the final budget preserves essential services and maintains investment in the state’s top priorities. The budget retains $12.4 billion in total reserves, including $7 billion in unallocated General Revenue, $4.9 billion in the fully funded Budget Stabilization Fund, and $500 million in the Emergency Preparedness and Response Fund. In addition to the budget, the House and Senate approved HJR 5019, a proposed constitutional amendment for the 2026 ballot to increase the amount of funds that may be retained in the budget stabilization fund from 10 percent to 25 percent of general revenue collections. The amendment also requires an annual transfer to the budget stabilization fund equal to $750 million until the cap is reached and allows withdrawal for critical state needs with two-thirds legislative approval. The Legislature also passed HB 5017 creating a state Debt Reduction Program. The initiative provides a recurring $250 million transfer from General Revenue to the State Board of Administration each year to accelerate the early retirement of outstanding state bonds. Both bills align with the Senate President’s and House Speaker’s priorities to reduce state spending while providing long-term fiscal safeguards for Florida and delivering tax reductions for all Floridians. The budget now goes to Governor DeSantis. He has 15 days upon receiving the budget to sign it and issue vetoes. Despite this timeframe, it is anticipated that the governor will act on the budget prior to the start of the fiscal year on July 1. Speaker Perez Press Release | Senate President Albritton Press Release Here is quick overview of the final funding for the programs and projects prioritized by APA Florida: FY 2025-26 Budget: SB 2500 Environment and Agriculture Everglades Restoration Water Quality, Stormwater Upgrades, Wastewater Infrastructure Blue-Green Algae Task Force Innovative Technologies for Algal Blooms and Nutrient Enrichment Biscayne Bay Water Quality Improvements Septic to Sewer and Water Improvements Rural and Family Lands Protection Florida Forever Florida Communities Trust Florida Recreation Development Assistance Program / State Park Improvements Statewide Flooring and Sea Level Rise Resilience Plan Housing SHIP SAIL Hometown Heroes Economic Development & Arts Job Growth Grant Fund Visit Florida Cultural and Museum Grants Transportation FDOT Work Program
$810 million $461 million $10.8 million $10 million $20 million $436.5 million $250 million $18 million $0 $0 $15 million $150 million $163.8 million $71.2 million $50 million $50 million $80 million $24.5 million $13.54 billion
Tax Package: Alongside the budget, the Legislature passed HB 7031, a $1.29 billion tax relief package for Floridians. The biggest tax savings in the package come from the repeal of the 2 percent business rent tax, totaling $904.8 million, effective Oct. 1, June 27, 2025 | Legislative Reporter
APA FLORIDA