(Bloomberg) — Florida Governor Ron DeSantis wants to raise pay for state employees, pilot cryptocurrency programs and provide gas tax relief in next year’s budget.
DeSantis, a Republican, unveiled his nearly $100 billion spending proposal, dubbed the “Freedom First Budget” for the fiscal year starting July 1, during a press conference at the state capitol in Tallahassee on Thursday.
“This is a huge, huge budget,” DeSantis said from behind a podium with a shadowed Florida map branded with “Freedom First.” “Freedom works in Florida, we are proud of that. I think the economic results are something that have been very very positive.”
The “Freedom First” branding is a reference to DeSantis’s laissez-faire Covid-19 policies, which have drawn the ire of the White House and many public-health experts even as they have lured some people and businesses to the Sunshine State. His approach has catapulted him into the GOP conversation for president in 2024, but it’s also come at a cost: Florida’s July to August Covid surge helped make it the eighth most-deadly state per capita for Covid.
Better-than-Expected Revenue
During his address, DeSantis lauded the strength of the Florida economy as he outlined his plans to use the state’s better-than-expected revenue. The state has collected about $12.7 billion of general revenue this fiscal year through October, running around $1.2 billion ahead of estimates, according to State’s Office of Economic & Demographic Research.
According to DeSantis, Florida reserves are historic, totaling more than $15 billion. If tax collections continue at elevated levels, by the time the new budget would take effect on July 1, the state could have $17 billion of cash in reserves, DeSantis estimated.
The governor has been slowly rolling out priorities over the last several weeks, announcing $1 billion of gas-tax relief by essentially eliminating the state levy. He also proposed the creation of a statewide flood mitigation plan to protect the vulnerable peninsula against rising seas and the reinstatement of a civilian military unit. DeSantis has also carried over existing initiatives into next year, like extending cash bonuses to law enforcement officers and funding grants to local governments to contend with the consequences of climate change.
In the upcoming budget, he wants to appropriate $534 million for workforce initiatives including development programs and apprenticeships to support economic growth, particularly in the logistics and manufacturing industries. DeSantis also said that he’s calling for $23.9 billion for kindergarten through 12th grade, which includes another round of $1,000 checks to public school teachers and principals.
He promised not to raise tuition for students attending the state’s higher education institutions. “These colleges and universities throughout the country are way too expensive, you should not have to mortgage your entire future to be able to get a two- or four-year degree,” he said.
As a part of the budget proposal, DeSantis is seeking to create pilot programs for the state to start using blockchain technologies. He said that Florida is looking at an initiative to allow businesses to pay state fees in cryptocurrencies and use blockchain for Medicaid payments and vehicle titles.
He said that said crypto enthusiasts have flocked to South Florida, where officials and business boosters have embraced the industry. Miami Mayor Francis Suarez has used Twitter to lure crypto businesses to the region, and has for months advocated for cryptocurrency-friendly policies at the local level.
“Our view as the state government is this is something that we welcome and we want to make sure that the state government is crypto-friendly,” DeSantis said.
He has also recommended four tax holidays, including the reduction of the state gas tax. The others would be either seven or 10-day sales-tax holidays throughout the year, covering specific industries like the “Disaster Preparedness Sales Tax Holiday” for items like generators.
DeSantis plans to use most of the $3.4 billion remaining of federal stimulus funds from the American Rescue Plan to finance infrastructure projects and employee retention payments. More than $500 million of those funds are at the discretion of the legislature to decide how to spend, according to DeSantis.
The governor’s priorities will be discussed and debated during the legislative session which kicks off on Jan. 11. A version of the final budget will likely be signed into law in the late spring or early summer. Both chambers are controlled by Republicans.
The proposal comes after DeSantis officially announced last month his run for re-election in 2022. Although he denies he’s planning beyond that, DeSantis has lured sizable donations from Wall Street titans and other out-of-state contributors and is considered a leading GOP choice for president in 2024.
Related: DeSantis Lures Funds From Buyout Veteran, MLB Team Owner
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