The Florida State Legislature voted on June 16, the final day of the legislative session, to send a constitutional amendment to voters that would make changes to the state’s budget stabilization fund (BSF). It will need to be approved by 60% of voters in Nov. 2026.
The amendment would increase the maximum amount that can be retained in the BSF from 10% to 25% of net general revenue. It would also require an annual transfer to the fund of $750 million or 25% of general revenue collections, whichever is less. For fiscal year 2024-2025, the amount in the BSF was 9.3% of the state’s revenue.
The amendment would allow the legislature to suspend the transfer if the fund is used to cover revenue shortfalls or emergency spending, or the legislature determines and passes a bill by a two-thirds vote that there is a critical need that supersedes the transfer to the fund.
The state last drew upon the fund during the 2008 financial crisis. During debate about the amendment, House Speaker Daniel Perez (R-116) said, “None of us know what the future holds. I think this is just a preparation of being prepared for the unexpected, and none of us know what the unexpected is, but we have a sample to look at in the 2000s when we had a recession. The state of Florida was not prepared for that recession.”
Rich Templin, director of politics and public policy for the Florida AFL-CIO, opposes the amendment to increase the amount in the BSF. Templin said, “When we consider this joint resolution in the midst of this budgeting process that we are in, it seems that what we value is putting money into an account that may or may never be used as opposed to funding kids having access to healthcare, or education, or teacher salaries.”
The budget stabilization fund was created with the passage of Amendment 4 in 1992 by a vote of 83% to 17%. The amendment was proposed by the Taxation and Budget Reform Commission, a constitutionally mandated commission that convenes every 20 years.
Voters last decided on an amendment to the section authorizing the fund in 2006. Amendment 1 removed the language adopted in 1992 that authorized the gradual increase in the amount of revenue the fund retained from 1% to 5% over five fiscal years beginning in 1994.
In Florida, a 60% vote is required during one legislative session for the state legislature to place a constitutional amendment on the ballot. That amounts to a minimum of 72 votes in the state House and 24 votes in the state Senate, assuming no vacancies.
The state House approved the amendment (House Joint Resolution 5019) by a vote of 100-1. The state Senate passed the amendment on the same day by a vote of 29-4.
This session, the state legislature voted to send another amendment to voters next year that would exempt agricultural-related tangible personal property, such as farm equipment or tools, from property taxes.
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