TaxWatch praises budget, but wants eye kept on dwindling surplus

By Lydia Nusbaum

Published Jul. 25, 2023, 2:42 p.m. ET | Updated Jul. 25, 2023

Gov. Ron DeSantis signs Florida state budget, Fort Pierce, Fla., June 15, 2023. (Photo/Gov. Ron DeSantis' office)

TALLAHASSEE, Fla. (FLV) – Nonprofit government watchdog Florida TaxWatch praised the state’s 2023-24 budget while urging lawmakers and the governor to heed its warning about a dwindling surplus.

“This year, the Florida Legislature allocated $117 billion in the main budget document, which included significant investments in education, infrastructure, the environment, and more, while also enacting record tax cuts and maintaining appropriate levels of reserves,” Florida TaxWatch President and CEO Dominic M. Calabro said.

Following the governor’s vetoes, the group said the budget totaled to $118.7 billion. The state’s reserves total more than $15.3 billion, according to the governor’s office.

Florida reached a record state budget surplus of $21.8 billion in fiscal year 2021-22.

The governor said he wants the state to invest $1 billion to create a new state investment fund. It will invest the money from the state’s surplus instead of allowing it to just “sit there.

“We are going to continue to lead in fiscal responsibility,” DeSantis said in 2023. “Florida, we’re built to succeed now and deep into the future.”

The 2019-2020 budget sat at $90.98 billion with $5.4 billion in total reserves.

“Still, it should be noted that Florida’s budget surplus is dwindling – the state is expected to have $5.3 billion in unobligated General Revenue after this year’s budget, and while that is an exceptional amount, it is down from the $17.7 billion balance that was estimated to be remaining at the end of this fiscal year,” Calabro said.

“What’s more, economists are expecting economic growth to slow considerably in the near future, so Florida TaxWatch believes it’s imperative that the governor and legislature strive to uphold Florida’s esteemed reputation as a beacon of fiscal stewardship moving forward,” the group’s president continued.

On the budget, DeSantis previously explained that he wants to continue to invest parts of Florida’s surplus rather than having it just “sit there.”

“We are going to continue to lead in fiscal responsibility,” DeSantis said. “Florida, we’re built to succeed now and deep into the future.”

DeSantis also recently announced the early payoff of $400 million in state debt.

“While Washington has governed irresponsibly and ballooned the national debt, the Free State of Florida is providing a blueprint for fiscal responsibility,” DeSantis said last week. “We put Floridians front and center in every decision we make and are proud to continue saving them money through smart fiscal policy.”