In this election, voters will decide whether to raise budget stabilization fund, also known as the rainy-day fund, from 10% to 25% of general revenue collections.
What the Amendment says:
Proposing an amendment to the State Constitution to increase the amount of funds that may be retained in the budget stabilization fund from 10% to 25% of general revenue collections, require the legislature to transfer the lesser of $750 million or the amount required to reach 25% of the general revenue collections each year unless certain conditions are met, and allow the legislature to withdraw funds for critical state needs.
What it means:
Budget stabilization funds are dedicated funds used for unexpected deficits or emergencies — like a hurricane. Florida’s budget stabilization fund was created in 1993 and currently limits the amount of money in the fund to 10% of the last fiscal year’s revenue collections for the general revenue fund. The amendment raises that cap to 25%. It also requires the legislature to move up to $750 million, or the amount needed to meet the 25% limit, whichever is less.
Supporters:
- Florida Senate President Ben Albritton
- State Rep. Lawrence McClure
- Florida Speaker of the House Daniel Anthony Perez
- The Republican Party of Florida
- Florida TaxWatch
Supporters argue:
Setting more money aside helps prepare for the unexpected.
“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,” said Former Florida Speaker of the House Daniel Perez.
Opponents:
- Gov. Ron DeSantis
- Americans for Tax Reform
- Florida Education Association
- League of Women Voters of Florida
Opponents argue:
Surplus revenue could be better spent on unmet needs throughout the state.
"This is a foolish constitutional amendment proposal. We already have a maxed out rainy day fund and have run the largest surpluses in state history. Any additional revenue should be used for lower taxes, including assisting local governments with grants so that homestead properties can be exempt from local property tax. Surplus revenue could also be used to remove tolls once the property tax issue is settled. I recommend a NO vote,” said Gov. Ron DeSantis.
A 'yes' vote would:
Increase the amount of money held in the Budget Stabilization Fund from 10% to 25% of revenue collections and require a transfer to the fund up to $750 million or 25% of revenue collections.
A 'no' vote would:
Keep the Budget Stabilization Fund at 10% of revenue collections.
Amendment 1 must receive at least 60% approval to become part of Florida’s Constitution.
