This Week in Jacksonville - Business Edition: Florida’s booming growth presents unique fiscal challenges

JACKSONVILLE, Fla. – In a recent episode of “This Week in Jacksonville: Business Edition,” Dominic Calabro offered an in-depth look into the complexities and challenges surrounding Florida’s budget process and taxation landscape.

Calabro described the budget-making process candidly, stating, “The budget actually came together with a good product. It just was a very, very messy process by which it occurred. A little bit messier than usual.”

He emphasized the sometimes troubling transparency of legislative processes remarking, “They’re not always perfect, as I say, two things you don’t want to see. In public, and that is sausage being made and laws being made. Well, this was probably more true than most years.”

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He elaborated on the political climate during Gov. Ron DeSantis’s first term, saying, “the Florida legislature was very, very compliant... because we didn’t have a pandemic. And then on top of that continues a little afterwards and then you know he was the candidate for president of the United States, the highest office in the land and it looked like he had, you know, at that time a good shot. And so a lot of folks were behind him and didn’t want to do anything to upset the King, so to speak.”

Calabro noted a significant shift in the legislature’s stance with new leadership: “Speaker David Perez, he put everybody on notice that he had a different point of view and also Senate President Ben Albritton... were trying to exercise a little bit more of the legislature’s independence as an important institution, as an equal institution with the executive branch, not subservient to.”

Reflecting on the founders’ intent, Calabro underscored the importance of checks and balances, “Florida, Texas believes, are the bulwark of our freedom. That’s what the founders of our nation really called for. And I think when they’re used properly, it’s a very, very good thing. It puts, you know, appropriate limits. The whole idea when we founded our nation was to put limits on government.”

On tax relief and fiscal policy, Calabro highlighted purposeful measures, “Taxpaying citizens enjoy, OK? And it coincided with a school year, kids going back to school or we have a sales tax holiday on hurricane supplies and equipment so that it’s a good way of reminding people and encouraging them to be prepared. So those are the kind of things disaster prepared. Business items provide, we think, meaningful tax relief so families and businesses may thrive.”

Discussing Florida’s booming growth and its impact on property taxes, he stated, “People increasingly cannot afford their either own a home or stay in a home and increasingly can’t afford their rents... It’s a constant of our success, OK, a success that even before the pandemic, Florida’s property values were rising. But during the pandemic, you know, Florida and Governor said the right thing. We opened Florida up. A lot of folks began to move here.”

Calabro expressed concern about the rapid rise in property taxes compared to population growth, “local governments in some cases have a population increase of four or 5% but in four or five years but their property taxes have risen 70%. OK, so what’s happening there? This is too much growth in spending and that’s really where we’re gonna spend some time looking at that.”

Addressing the balancing act in taxation, he explained, “we’re looking at what we can do to alleviate that problem without busting the ability of a local government to provide core functions, police, fire, healthcare, public safety, quality, environment. You know, we can’t throw the baby out with the bathwater.”

Calabro also discussed budget priorities and the vetting of expenditures, saying, “the governor makes political decisions. We don’t. So and and that’s fine. It’s appropriate. You can’t take politics out of politics, nor do we ever expect that. But I think there are a lot of more principal decisions... Is it a core function of state government? Is this something that state government is required by the Constitution or state law? Is it something that people rightly expect it should have delivered by the state of Florida?”

On infrastructure spending for water projects, he emphasized the importance of science-based prioritization, “We want to make sure that those infrastructure projects for water that connect rivers and canals and so forth and water systems that they’re connected, that there’s a priority, that there’s a good science behind the project that you get funded, that they’re thoughtfully started and finished rather than just catch as can.”

Finally, Calabro highlighted Florida’s growth as a unique challenge, saying, “we’re just growing so much. It’s a different problem than other states have, but they’re just losing their population because it’s their policies are spiraling down because they tax more and more and more and people begin to leave.”

He concluded with a focus on stewardship and outcomes for taxpayers, “How can we show good stewardship? How can we show by using the budget process and priorities that we’re getting good outcomes at a cost that’s affordable to hard working families and seniors in our state? Tax switch is at the forefront to make sure that they get good value and that their money is well spent. And that it makes a good difference in their lives.”


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