Florida’s 2016-2017 fiscal year’s $80 billion budget begins Friday, beginning the year with a new set of funding for state departments, education, health and human services and other important projects for the Sunshine State.
This year’s budget will be the largest in Florida history. The new fiscal year’s budget surpasses the previous year’s by $4 billion and is $3 billion larger than Gov. Rick Scott’s original recommendation last year.
This year, the state budget will include over $23 billion in funding for K-12 public education, with increased student spending on public schools rising by one percent, according to estimates on Gov. Scott’s Florida First budget website. That’s about $1 in every $4 for education spending.
Education construction also received a significant chunk of the budget, with over $715 million for education construction projects. Some public universities will be receiving extra money for new renovations.
The Agency for Healthcare Administration received $25 billion of the budget, while the state transportation agency received nearly $10 billion of this year’s budget.
On top of this year’s budget, Floridians will also see some tax cuts this year. State lawmakers passed a wide-ranging tax cut package this year. The new budget includes a reduction of nearly six percent in the property tax to help pay for public schools.
On top of that, the new budget package will also eliminate the sales tax on manufacturing equipment and will set up a three day back-to-school “holiday” to give tax breaks to shoppers before the school year starts.
The tax cut package will also exempt sales taxes on food and drinks sold by veterans’ organizations and will phase out a sales tax on asphalt used for government projects.
"We will continue to do all we can to cut more taxes and support economic growth so Florida can become first for jobs,” said Scott in a release on the tax cuts.
Figures from the Florida Chamber of Commerce show that 77 percent of general revenue comes from sales and use tax while nearly half -- 42 percent -- of funding goes to health and human services.
“Unlike some other states, Florida has a balanced budget, and Florida's growth has allowed us to make more investments, even while we have instituted tax cuts over the last five years,” the Florida Chamber said in a press release.
On top of the state’s budget, 269 bills will also go into effect July 1.
Reach Allison Nielsen at allison@sunshinestatenews.com and follow her on Twitter @AllisonNielsen.
