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While I have not had time to dig through it to do an analysis on all environmental spending, a cursory examination shows an overall general reduction across the board in the natural resources silo. DEP, DACS and FWC were reduced by 5, 15, and 7 percent, respectively. Total allocations for DEP were $2.46B. DACS came in at 2.88B, and FWC brought up the rear at $528M.
The statewide beach management program continues to bring in more than base funding. For FY 2026-27, the total allocated for our program was $64.4M, with accompanying proviso that directs spending for projects 1-4 on the beach list and 1-6 on the inlet list. The funding fully covers those projects, which it would not have if the Legislature abided by the statutory distribution formula between beaches and inlets. I am extremely grateful to those members who continue to provide strong support for the program, and while not what we had hoped for at the beginning of session, an additional $14.1M in an austerity budget shows the importance of our message and advocacy.
The specific line item including proviso is on page 329 of the General Appropriations Act and is also provided below.
1883 GRANTS AND AIDS TO LOCAL GOVERNMENTS AND
NONSTATE ENTITIES - FIXED CAPITAL OUTLAY
BEACH PROJECTS - STATEWIDE
FROM GENERAL REVENUE FUND . . . . . 14,141,067
FROM LAND ACQUISITION TRUST FUND . . 50,000,000
Funds in Specific Appropriation 1883 are provided to the Department of Environmental Protection for distribution to beach and inlet management projects consistent with any component of the comprehensive long-term management plan developed in accordance with section 161.161, Florida Statutes. Funds shall be used to fund post-construction monitoring and projects 1 through 4 on the Strategic Beach Management Plan and projects 1 through 6 on the Inlet Management Plan.
Property Taxes
Right after the budget passed, Governor DeSantis called for a Special Session on property tax relief. The Legislature convened on June 1st for marathon committee meetings and passed the bill the following day. FSBPA is closely monitoring this bill, and our preliminary analysis indicates there may be negative impacts to project funding and to the association itself. For those unaware of the joint resolution to place a constitutional amendment question on the November ballot, I am including a brief synopsis taken largely from the House analysis summary.
If passed by voters, the constitutional amendment:
- Provides a new homestead exemption for non-school taxes for the first $150,000 of assessed value in 2027, and the first $250,000 of assessed value in 2028, which automatically increases each year thereafter as tied to the consumer price index.
- Creates a five-year homestead exemption on the first $50,000 of assessed value of homestead properties ($25,000 for school levies, $50,000 for non-school levies) for owners who are not permanent Florida residents as of December 31, 2026, and allows such property owners to receive the same homestead exemption as permanent Florida residents after five years.
- Requires the Legislature to prescribe a uniform procedure for certain local governments to increase the amount of assessed value exempt from taxes.
- Reduces the non-homestead property assessment increase limitation from 10 percent to 5 percent per year.
- Limits the use of ad valorem revenue by counties and municipalities to specific purposes.
There are differing expectations for reductions to local government tax bases, however, the House analysis states the FY 2027-28 impact will be a minimum of $4.6B and the FY 2028-29 impact will be at least $8.4B. Given the expected shortfalls in state collections for the same year, the financial outlook may be dire. While TDTs were not included in this bill, there was an amendment, which was not adopted, that would have authorized local governments to use TDTs for the same purposes as ad valorem revenues. If the constitutional amendment passes in November, I expect to see additional bills filed to expand uses of TDTs. Until then, we will be watching closely like everyone else and trying to plan accordingly.
If you have any questions about the budget or the property tax bills, please reach out to me.
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