DeSantis calls out ‘indefensible’ ‘corporate welfare’ as rationale for Disney legislation

LAKE BUENA VISTA, Fla. (FLV) – Gov. Ron DeSantis penned an opinion piece in the Wall Street Journal detailing why the Florida government decided to revise its relationship with Disney and the Reedy Creek Improvement District, renamed to the Central Florida Tourism Oversight District.

“On Monday, I signed the law ending the Walt Disney Co.’s self-governing status over 43 square miles in central Florida, an area almost as big as Miami. Disney no longer has its own government,” DeSantis wrote. “It has to live under the same laws as Universal Studios, SeaWorld and every other company in our state and is still on the hook for the old district’s municipal debt.”

DeSantis slammed the 1967 arrangement Florida had, establishing its special district, as “an indefensible example of corporate welfare.”

It provided the company with favorable tax treatment, including the ability to assess its own property valuations and to enjoy the benefits of regional infrastructure improvements without paying taxes toward the projects. It exempted Disney from Florida’s building and fire-prevention codes. It even allowed Disney to build a nuclear power plant and to use eminent domain to seize private property outside the district’s boundaries. While special districts are common in Florida, Disney’s deal was conspicuous in the massive benefits it conferred. Disney’s self-governing status endured because the company’s unrivaled political power in Florida made its arrangement virtually untouchable.

Gov. Ron DeSantis in the Wall Street Journal

The governor noted the Burbank, California-based company has been put on a “pedestal” by Florida until it began fighting against the K-3 Parental Rights in Education Act, which bars classroom instruction in those grades on sexual orientation and gender identity.

“Disney executives were seen on videos boasting about the company’s plans to inject sexuality into its programming for children,” he said.

On Democrats’ opposition to Florida Republicans’ crackdown on Disney’s privileges, DeSantis called out their support for Disney keeping its self-governing status.

“Democrats often rail about corporations’ nefarious influence over politics and oppose favorable exceptions for big companies,” he wrote. “Yet they supported keeping Disney’s special self-governing status. This confirms how much the modern left has jettisoned principle in favor of power.”

The law, signed by DeSantis this week, strips Disney of its control over the district, ultimately doing away with many of the company’s self-governing powers. Rep. Fred Hawkins, R-St. Cloud, sponsored the legislation.

The legislation allows DeSantis to appoint members, who are confirmed by the Senate, to the district’s board. The Reedy Creek Improvement District will be renamed the Central Florida Tourism Oversight District.

“The state of Florida is the new sheriff in town,” DeSantis said. “We’ve created a state control board that is going to be responsible for this area.”

DeSantis said he asked the board to look at the compensation for the first responders and give them more compensation for doing a good job.

Last year, lawmakers passed legislation to dissolve Disney’s Reedy Creek district. However, Republican leadership called lawmakers into a special session in February in an effort to make sure Disney’s estimated $700 million in debts would not be dropped to the taxpayers once the district dissolved.

Republicans said the newly-appointed district would ensure the company pays its debts. 

The governor’s office said the bill will end Disney’s ability to: build airports, nuclear facilities, toll roads, boundary changes to their property, award noncompetitive construction contracts, and more.

The office said it ends Disney’s exemption from state regulatory reviews and approvals as well as ends Disney’s exemption from the Florida Building Code and Florida Fire Prevention Code.

“From a policy perspective, how do you give one theme park its own government and then treat all of the other theme parks differently?” DeSantis said. “And so we believe that was not good policy.”