Deal to cut Florida taxes ‘has blown up.’ Threat of government shutdown now looms
The tentative budget deal Florida’s legislative leaders made last week has “blown up,” according to a memo from House Speaker Daniel Perez.
Florida’s 2025 session is already in overtime, as Perez and Senate President Ben Albritton have been unable to agree on a budget, the only required duty the Legislature must complete.
A government shutdown could occur if the state Legislature fails to pass a budget before the end of the fiscal year, which is June 30. If that were to take place, state-funded services would be impacted.
Shortly after Perez announced the House and Senate were going back to the drawing board, he said in an interview with the Herald/Times that he is not budging on his goal of cutting government spending.
“We are steadfast in our goal,” Perez said. “We believe that eventually, the Florida Senate will reach the conclusion that it is better to be a fiscal conservative than to continue wasteful spending.”
Last week, lawmakers agreed to extend the session until June 6. Now, the House plans next week to extend the session “through the end of June,” Perez said in his memo.
But the Senate is only planning to extend further if it becomes necessary, according to a spokesperson.
The latest budget update comes after Gov. Ron DeSantis on Wednesday said he would likely veto the House’s plan for a sales tax cut, saying “any Florida last tax package is going to be dead on arrival.”
The governor, who has railed in recent months against House leaders, has said a sales tax cut would benefit out-of-state tourists more than it would help Floridians. He has also framed the sales tax cut as conflicting with his idea to cut property taxes, an assertion that Perez said is false.
Perez has championed the sales tax cut, but Albritton has been more hesitant.
Last week, Albritton said “as part of our agreement with the House,” the Senate would take up a tax relief package that includes $2.8 billion in cuts.
According to Perez, $1.6 billion of that cut would be to reduce sales taxes. Announcing the outline of a deal last week, Perez said it was “better to get it right than to do it fast.”
In his memo to lawmakers Friday, Perez expressed disappointment that Albritton would “no longer bring the House’s historic tax proposal to the Senate floor.“
”As I’m sure you can appreciate, this blew up the framework for the budget deal we had negotiated,” Perez said in the memo.
Perez said Albritton called him on Thursday to tell him he would no longer support what they had agreed upon a week ago. Albritton did not mention the governor’s threat in the call, Perez said.
Albritton sent a memo to senators Friday that noted that DeSantis had said an across-the-board sales tax cut would be “dead on arrival.”
Albritton said senators also have concerns about the cut “and instead favor targeted tax relief that benefits growing families and seniors aging with dignity.”
Albritton’s memo didn’t directly say that he had gone back on the framework he agreed to with House leaders.
But he did say he wanted a tax package that “is sustainable for the long term and leaves room in our balanced budget for the voters to consider meaningful property tax relief.”
A change to Florida’s property taxes would need to be approved by at least 60% of voters in a future election. Lawmakers have the ability to put a proposed amendment on the ballot for people to vote on but didn’t pass any proposal to do so this year.
Perez has launched a special committee to consider property tax proposals for the 2026 election, saying DeSantis’ office didn’t provide any specific plan.
But DeSantis has dismissed that effort, saying, “You don’t convene a 37-person committee when you’re trying to get something done.”
Perez said he hasn’t spoken with DeSantis about the budget plan recently.
“I am willing to be the adult in the room and sit with the governor and explain to him why I believe this is in the best interest of Florida, and he is free to disagree with me,” Perez said. “If we can do it in person like adults, it’s something that I would prefer. But unfortunately, the governor only talks in roundtables and Twitter.”
The Republican Party of Florida on Friday said it is offering to host a budget summit with DeSantis, Albritton and Perez.
“Bringing everyone to the table will help us focus on our shared priorities—fiscal responsibility, tax relief, and a balanced budget,” Evan Power, Republican Party of Florida chairperson, said in a statement.
This story was originally published May 9, 2025 at 12:00 PM.