On Tuesday, December 5th, Governor Ron DeSantis released his recommended budget for the State Fiscal Year (SFY) 2024-25, Focus on Florida’s Future. The Governor’s recommended budget serves as an important starting point for both the Florida House of Representatives and the Florida Senate as they begin work on developing their own proposed state budgets. The Florida Legislature is constitutionally required to pass a state budget, officially titled as the General Appropriations Act, during the annual regular session. 

The Governor’s Budget Recommendations for SFY 2024-25 total approximately $114.4 billion, which represents a 2.20% decrease from the 2023 General Appropriations Act, the current state budget for SFY 2023-24.  

The chart below summarizes a comparison of the 2023 General Appropriations Act and the Governor’s Budget Recommendations for SFY 2024-25. The budget totals do not reflect the Governor’s vetoes from the 2023 General Appropriations Act. The Governor vetoed $510.9 million from the 2023 General Appropriations Act. 

Health and Human Services received the largest portion of the proposed budget, totaling approximately $46.3 billion; a 2.00% decrease from the current year. All educational programs and services combined received the next largest portion of the proposal, totaling approximately $30.7 billion; an increase of approximately 1.26% from the current fiscal year. 

Natural Resources, Environmental Issues, Growth Management and Transportation Expenditures represent the third largest portion of the proposed SFY 2024-25 budget with funding equaling $22.4 billion, which represents a 1.05% decrease from the current fiscal year.  

Proposed general revenue expenditures for SFY 2023-24 equal approximately $46.0 billion and trust fund expenditures total approximately $68.4 billion. The chart below compares expenditures between the 2023 General Appropriations Act and the Governor’s proposed SFY 2024-25 budget by fund type.  

Agricultural & Environment  

Water Quality Highlights 

• Septic-to-Sewer Improvements: $135 million provided to the wastewater grant program for projects to construct, upgrade or expand wastewater facilities, provide advanced wastewater treatment, and convert on-site septic systems to public sewer systems, as established in section 403.0673, F.S.  
• Water Quality Improvement Grant Program: $50 million recommended for planning, design, engineering, and construction of the specific project components designed to achieve the greatest reductions in harmful discharges to the Caloosahatchee and St. Lucie Estuaries as identified in the Comprehensive Everglades Restoration Plan Lake Okeechobee Watershed Restoration Project. (see back of the bill section for additional 2023-24 funding) 
• Total Maximum Daily Loads: $51.4 million recommended to monitor and   assess water quality, set scientific water quality restoration goals (Total Maximum Daily Loads), and accelerate the implementation of the projects and actions set forth in restoration plans, such as Basin Management Action Plans (BMAPs) to address nutrient pollution, including green infrastructure and land acquisition projects. This program supports the efforts of the Blue-Green Algae Task Force consensus findings to address nutrient loads to impaired waterbodies affected by blue-green algae. The department may also provide cost-share funding for innovative nutrient removal projects. 
• Harmful Algal Blooms: $35.6 million to improve water quality and combat the effects and impacts of harmful algal blooms, including blue-green algae and red tide. The Focus on Florida’s Future Budget includes the following: 
• $10 million for supporting the evaluation and implementation of innovative technologies and short-term solutions to combat or clean up harmful algal blooms and nutrient enrichment of Florida’s fresh waterbodies, including lakes, rivers, estuaries, and canals. Funds may be used for the Department’s red tide emergency grant program to support local governments in cleaning beaches and coastal areas to minimize the impacts of red tide to residents and visitors. Funds may also be used to implement water quality treatment technologies, identified by the Department, near water control structures in Lake Okeechobee. 
• $20 million for harmful algal blooms to competitively procure water quality   treatment technologies to combat harmful algal blooms in Lake Okeechobee as determined by the Department.  
• $5 million to assist county governments with their responses to emergency conditions associated with harmful algal blooms and red tide events that may impact public health, Florida’s environment, and fragile ecosystems, including beaches and wildlife. 
• $600 thousand for additional expenses related to algal bloom mitigation. 

• Springs Restoration: $50 million from the Land Acquisition Trust Fund for springs restoration projects and land acquisitions to protect springs.  

Alternative Water Supply Grant Program: $30 million to help communities plan for and implement vital conservation, reuse and other alternative water supply projects. (see back of the bill section for additional 2023-24 funding) 

Florida Forever: $100 million recommended for the acquisition of environmentally endangered, unique, or irreplaceable lands. 

Beach Management Projects: $50 million provided to the Department of Environmental Protection for distribution to beach and inlet management projects consistent with comprehensive long-term management plans developed according to s. 161.161, F.S. 

Resilient Florida program: $100 million for implementation of year one of the Statewide Flooding and Sea Level Rise Resilience Plan, as well as $20 million toward Resilient Florida Planning Grants. In the event that projects included in the plan are unable to continue or if excess funds are identified by completed projects or ineligible activities proposed in applications, the department may reallocate funds to projects on its Statewide Flooding and Sea Level Rise Resilience Plan to the next project on the ranked list or to projects already funded in year one that have identified funding needs in subsequent years.  

Mosquito control programs: $3.2 million, which is a $500 thousand increase over the current FY funding.

Transportation and Economic Development 

Affordable Housing:    

• State Housing Initiatives Partnership (SHIP) program: $208.6 million. 
• State Apartment Incentive Loan Program (SAIL): $239.5 million. 

Low-Income Home Energy Assistance Program (LIHEAP): $100 million for additional funding in partnership with local agencies. 

Job Growth Grant Fund: $50 million to support workforce and infrastructure projects across the state. (see back of the bill section for additional 2023-24funding) 

Visit Florida: $50 million (see back of the bill section for 2023-24 additional funding) 

County Incentive Grant Program (CIGP): $66.7 million to provide grants to counties to improve transportation facilities located on the State Highway System or to relieve traffic congestion on the State Highway System. 

Small County Outreach Program (SCOP): $88.1 million 

Small County Road Assistance Program (SCRAP): $26.5 million  

Fiscally Constrained Counties: $70.7 million for the purpose of mitigating deficits in the Fiscally Constrained Counties and Fiscally Constrained Counties Conservation Lands distributions. 

Rural Economic Development: $32 million toward the Rural Infrastructure Fund to support infrastructure projects such as broadband, roads, stormwater and wastewater systems, and telecommunications facilities.  

Shared County/State Juvenile Detention: The proposed budget estimates the counties’ portion of total Shared County/State Juvenile Detention to be $73.6 million an increase of $3 million over the current year amount. 

Community Substance Abuse and Mental Health Services: Funded at approximately $1.2 billion for all programs. 

Community Action Treatment (CAT) Teams: $41.6 million, directed to DCF to contract with providers throughout the state for operation of CAT teams, which provide community-based services for children (aged 11 to 21) with mental health and/or substance abuse diagnoses.  

Public Safety, Mental Health, and Substance Abuse Local Matching Grant Program: $9 million for the program, which supports county programs that serve adults or youth who are in behavioral crisis and at risk of entering the criminal justice system.  

Crime Labs: $77.2 million for crime lab services. 

Homeless Programs Challenge Grants: Approximately $15.2 million respectively, to DCF for challenge grants, which are awarded to lead agencies of homeless assistance continuums of care a decrease of $4.8 under the current year funding. Support the Challenge and Homeless Housing Assistance Grants to provide rapid rehousing and homelessness prevention to vulnerable populations.  

Library Grants and Library Cooperatives: $18.7 million  

Fiscally Constrained County Funding: $70.7 million, to offset the impacts of previously approved constitutional amendments.  

Emergency Distributions: $34.2 million in emergency distribution revenue sharing for small counties.  

Cybersecurity: $40 million local government cybersecurity technical assistance grants 

Back of the Bill 

The Focus on Florida’s Future Budget also proposes a number of additional appropriations for the 2023-24 Budget Year: 

Section 57  

For 2023-2024, appropriates $317.4 million in nonrecurring funds from the Wastewater Treatment and Stormwater Management Revolving Loan Trust Fund to the Department of Environmental Protection for the Wastewater and Stormwater Treatment Facility Construction Loan Program related to Hurricane Ian.  

Section 60  

For 2023-2024, appropriates $16.6 million in nonrecurring funds from the General Revenue Fund to the Department of Revenue for the purpose of mitigating deficits in the Fiscally Constrained Counties and Fiscally Constrained Counties Conservation Lands distributions as determined by the August 8, 2023, Revenue Estimating Conference. 

Section 186 

For 2023-2024, appropriates $75 million recurring funds from the General Revenue Fund to the Department of Commerce for supply chain capacity expansion and innovation grants. The grant program shall support increased energy storage and distribution at airports, inland ports, intermodal logistics centers, and seaports. The funds shall also provide for a matching grant program for vertiport development. The grant program shall be developed in partnership with the Department of Transportation and grant recipients shall be jointly selected by the Department of Commerce and the Department of Transportation. The unexpended balance of funds remaining on June 30, 2024, shall revert and is appropriated to the Department of Commerce for Fiscal Year 2024-2025 for the same purpose. This section is effective upon becoming law. 

Section 203  

From the funds received and deposited into the General Revenue Fund from the state’s award from the federal Coronavirus State Fiscal Recovery Fund (Public Law 117-2), the following nonrecurring appropriations from the General Revenue Fund are authorized for the 2023-2024 fiscal year: 

Florida Hometown Heroes Housing Program 

The nonrecurring sum of $100 million from the General Revenue Fund is appropriated to the Department of Commerce for the Hometown Heroes Program to provide down payment assistance and closing cost assistance to Florida homebuyers pursuant to section 420.5096, Florida Statutes. 

Florida Job Growth Grant Fund 

The nonrecurring sum of $50 million is appropriated from the General Revenue Fund to the Department of Commerce for the Florida Job Growth Grant Fund pursuant to section 288.101, Florida Statutes. 

Florida Tourism Industry Marketing Corporation (Visit Florida) 

The nonrecurring sum of $55 million is appropriated from the General Revenue Fund to the Department of Commerce to contract with the Florida Tourism Industry Marketing Corporation to conduct activities that support and fund Florida’s tourism industry through promotion and marketing activities, services, functions, and programs. 

Mental Health Forensic Bed Capacity 

The nonrecurring sum of $72 million from the General Revenue Fund is appropriated to the Department of Children and Families to sustain forensic bed capacity to support admissions to state mental health facilities and reduce the waitlist for admission. 

Alternative Water Supply 

The nonrecurring sum of $50 million from the General Revenue Fund is appropriated to the Department of Environmental Protection for the water supply and water resource development grant program to help communities plan for and implement conservation, reuse and other water supply and water resource development projects. Priority funding will be given to regional projects in the areas of greatest need and for projects that provide the greatest benefit. The department shall identify and research all viable alternative water supply resources and provide an assessment of funding needs critical to supporting Florida’s growing economy. 

Water Quality Improvement 

• The nonrecurring sum of $20 million from the General Revenue Fund is appropriated to the Department of Environmental Protection in Fixed Capital Outlay for critical infrastructure, including wastewater and stormwater projects that address water quality impairments and coral reef restoration in Biscayne Bay. 

• The nonrecurring sum of $100 million from the General Revenue Fund is appropriated to the Department of Environmental Protection in Fixed Capital Outlay for critical infrastructure including wastewater and stormwater projects that address water quality impairments in the Indian River Lagoon. Any unexpended balances of funds appropriated in this section (Section 203) remaining on June 30, 2024, shall revert and are appropriated for the same purposes for Fiscal Year 2024-2025. This section is effective upon becoming a law. 

Appropriations Implementing and Conforming Bills make certain changes to substantive law in order to implement the proposed General Appropriations Act. 

Implementing and Conforming Bill issues include:  

Tax Breaks: 

The Focus on Florida’s Future Budget includes an additional $1.1 billion in tax relief, including:  

• one-year exemption on taxes, fees, and assessments for residential property insurance policyholders: $409 million 
• A permanent insurance premium tax exemption on Flood Insurance Policies: $22 million 
• “Freedom Summer” sales tax holiday from Memorial Day to Labor Day: $241 million 
• Two Back-to-School sales tax holidays, one in the fall and one in the spring as students return to school from winter break: $169 million 
• Two 14-day Disaster Preparedness sales tax holidays: $49 million 
• A 7-day Tool Time sales tax holiday: $16 million 
• An increase of the Sales Tax Collection Allowance: $165 million 
• Permanently reduce corporate income taxes for businesses employing Floridians with unique abilities: $5 million 
• Permanently exempts Over-the-Counter Pet Medications from sales taxes: $37 million 
• The Proposed Tax Relief Legislation is available here. 

FRS Contribution Rates 

Unlike previous years, the recommended normal and unfunded liability rates for the Defined Benefit or Pension plan were not included in the Governor’s proposed legislation regarding the Florida Retirement System. The Governor’s proposed legislation does release the proposed rates for those employees in the Defined Contribution or Investment plan and are proposed to increase by 1% for each class.   

The Governor’s proposed FRS Legislation also provides for increased benefits in the form of a one-time cost of living increase of 3%. All members of the pension plan that retired prior to July 1, 2023 will receive an increased monthly benefit for 9 months beginning October 1, 2024. They will receive the amount of the monthly benefit received on September 30. 2024, plus an amount equal to 3.0% of this benefit. The increased benefit amount will be the basis for the calculation of the cost-of-living adjustment on July 1, 2025. 

The Governor’s proposed FRS Legislation also proposed to require an additional rate amount for all classes of employees to pay down the unfunded liability beyond the amount otherwise provided for in the bill. In his briefing materials, the Governor’s office indicates this additional rate will result in paying down the unfunded liability by an additional $1 B. However, the legislation does not provide the rates required to achieve this reduction in the unfunded liability. 

The Governor’s proposed FRS bill is available here.   

Governor’s Proposed Implementing Bill 

Section 13 – Proposes to continue the provision first included in the 2023-24 Implementing bill that excluded Hospital Directed Payment Program funds from the calculation of the county contribution to Medicaid. This provision saved counties approximately $18 M in 2023-24. 

The Governor’s Implementing bill is available here. 

Florida Reserves 

• $6.4 billion in unallocated General Revenue 
• $4.8 billion in the Budget Stabilization Fund 
• $1.9 billion in unallocated Trust Funds 
• $1.0 billion in the Emergency Preparedness and Response Fund 
• $2.2 billion in the Reinsurance Assistance and the Florida Optional Reinsurance Assistance Programs 
• $16.3 billion in Total Reserves