Governor Ron DeSantis on Wednesday signed the state’s record-high $101.5 billion budget for fiscal 2021-2022, a $9.3 billion increase from the previous fiscal year, which some lawmakers argue is a direct result of the $10 billion of federal aid it received through the American Rescue Plan Act.
The current budget is up from the $92.2 billion fiscal 2020-2021 budget the governor approved last year. The “Florida Leads” budget contains $9.5 billion of reserves, including over $1.2 billion of revenues that came in above April estimates. This aims at holding onto additional resources to respond to hurricanes or any other unforeseen disasters.
Florida’s reserves include $4.9 billion of unallocated general revenue, $2.7 billion in the budget stabilization fund and $1.9 billion of unallocated trust funds.
The budget also implements $169 million of tax cuts and includes several sales tax holidays during the year.
The governor
“I’m proud to sign the Florida Leads budget that continues to exemplify Florida’s continued resolve and unshakeable economic foundation, while establishing Florida’s position as a nationwide leader in education, protecting our environment, creating a resilient economy, and ensuring public safety,” DeSantis said.
Democrats in the state Legislature said the credit for the recovery budget really belonged in Washington not Tallahassee.
“Thanks to President Joe Biden and Democrats in Congress passing the ‘American Rescue Plan,’ the governor can tout a state budget that helps Florida recover from the pandemic, allocating billions for the environment, public schools, and community healthcare,” the state Senate Democratic Caucus said in a statement. “A big chunk of the $10 billion from the federal stimulus act added to a bounty of transportation and economic development projects all over the state.
The Florida Department of Transportation will get $10.3 billion, including $9.44 billion for the state’s transportation work program, a five-year funding plan for transportation infrastructure.
More than $415 million is being invested in the Everglades restoration project and $202 million is going for water resources. The budget also includes $152 million to protect other properties and waters in Florida.
Federal funding also comes in, with up to $500 million to cover aid to the “Resilient Florida” program that fights sea level rise, up to $500 million for the wastewater grant program and up to $300 million for land acquisition to protect wildlife corridors.
The budget also provides $37.5 million to state agencies to enhance technology and security measures to help protect the state against the evolving nature of cyber threats.
Florida has one of the best funded pension plans in the country. As of June 30, 2020, the unfunded actuarial liability of the Florida Retirement System’s defined benefit program was $36.0 billion.
Based on an actuarial liability of $200.3 billion and $164.3 billion in assets, the program is 82.0% funded. The fiscal 2021-22 budget includes $59 million to implement the recommendations of an independent actuary to fund recommended contributions.
