DeSantis’ proposed $116B budget includes cuts to Black Business Loan Program, tax holiday for guns | Florida News

Gov. Ron DeSantis late Sunday quietly posted budget recommendations for the 2025-’26 fiscal year, a contrast to the usual pomp for which budget proposals are announced.

The budget proposes several tax decreases, including a new tax holiday for guns and ammo during the Summer months, called “Second Amendment Summer.” It also calls for the cancellation of more than $2 million in funding for the Black Business Loan Program, which provides loans for “Black business enterprises that cannot obtain capital through conventional lending institutions but that could otherwise compete successfully in the private sector,” according to Florida State Statute. 

The Republican apparently has an eye on austerity, naming his proposal “Focus on Fiscal Responsibility” and calling for the Legislature to pass a $115.6 billion budget, one $3 billion lower than the current budget year. With the proposal, DeSantis calls for eliminating a net 741 government positions in order to “operate a lean and streamlined government.”

“We know what works, and we need to continue to double down on those efforts,” DeSantis said in a press conference on the budget.

“We’re showing that you could be fiscally responsible, respect taxpayers and yet still deliver on the main promises that you made and the main public needs of our people.”

Some state agencies would be hit harder under the proposal, while others would see a boost in staffing.

While the budget eyes cuts, the General Revenue portion of the budget is $50.2 billion, about a $383.4-million increase over the 2024-’25 budget.

“we’ve more than tripled our rainy day fund over these last six years. We are also proposing to continue and to expand our accelerated debt repayment program,” DeSantis said. “So we started this a couple years ago, understanding that even though Florida had low debt per capita, we had an opportunity to retire it sooner, and that can considerable savings to taxpayers.”

The state’s reserves are now at $14.6 billion, or 12.5% of the total budget.

“Florida’s continued prioritization in maintaining reserves, and prudent fiscal management, is demonstrated by the state’s continued AAA credit rating from all major credit rating agencies, which now exceeds the U.S. Government’s credit rating,” a budget memo reads.

Democrats criticized the budget as one that ignores the economic challenges of Floridians.

“The Governor’s budget proposal focuses on grabbing headlines and trying to keep him relevant in the national spotlight while leaving Florida’s families behind. Florida is becoming too expensive for many Floridians, with the cost of insurance, groceries, and health care skyrocketing faster than our wages,” said House Minority Leader Fentrice Driskell, a Tampa Democrat.

“DeSantis is so out of touch that he brags about ballooning the ‘rainy day fund’ to nearly five billion dollars while so many needs are going unmet. Ask any teacher in Florida and they’ll tell you that money is desperately needed to help our kids get the best education possible. Ron DeSantis, and all elected Republicans, should remember that they serve all of the people of Florida, not just one part-time resident at Mar-a-Lago.”

The drop in positions under the budget would be in the Department of Health, where DeSantis proposed nixing a net 484 positions as he slashes the total budget by more than 10.7%. He also wants 325 fewer positions in the Department of Children and Families, though he wants to increase its budget in dollars by almost 1.5%. But he wants to increase the budget for the State Court System by about 4.6%, while increasing staffing by a net 112 positions.

Of note, the Governor’s proposed budget is still higher than the $114.4-billion budget DeSantis proposed in December 2023, but less than the $116.5 billion he signed off on in June for the current year.

Some notable proposals, DeSantis wants to phase out rent taxes, by dropping them to 1% in 2026 and then eliminating the tax altogether at the start of 2027. He wants an investment tax credit program for early stage and cutting-edge research, innovation, science and engineering, and lays out plans for a program. In addition to the new tax holiday for guns, which would run from Memorial Day through Fourth of July, he calls for a tax holiday for return-to-school, two tax holidays for disaster preparedness and for a continuation of a Freedom Month with tax breaks on live events, movies and museums, along with other summer outdoor activities.