Florida lawmakers on Thursday moved forward with a proposed constitutional amendment aimed at significantly bolstering the state’s financial reserves, a move supporters say will better prepare Florida for potential economic downturns and other unforeseen challenges.
The proposal (HJR 5019 and SJR 1908) seeks to increase the cap on the state’s existing Budget Stabilization Fund, often referred to as the “rainy-day fund,” from 10 percent of general-revenue collections to 25 percent.
This would allow the fund to grow from approximately $4.75 billion to an estimated $11.88 billion based on current fiscal year figures. The amendment would also mandate an annual transfer of $750 million into the fund.
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House Speaker Daniel Perez, R-Miami, emphasized the preventative nature of the measure, stating, “After this bill passes, we will be in a better place, God forbid, there is a recession…the state of Florida will be prepared.”
Senate President Ben Albritton, R-Wauchula, echoed this sentiment, asserting the proposal “makes Florida’s balance sheet more durable in difficult times.”
However, the initiative faces opposition from some Democrats and critics who argue that the $750 million annual allocation could be better spent on pressing state needs.
Rich Templin, a lobbyist for the Florida AFL-CIO, questioned the priority, stating, “We have so many needs and obligations that are still unmet. Why would we take money and put it in our retirement account?” Opponents suggest the funds could be used to address issues like raising teacher pay and providing healthcare for children.
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Despite the dissenting voices, the proposal gained traction in legislative committees. The House Budget Committee approved it with a 23-4 vote, and the Senate Appropriations Committee followed suit with a 14-3 vote. For the amendment to go before voters in November 2026, it must pass the full House and Senate before the expected end of the legislative session on June 16. In the interim, lawmakers plan to set aside $750 million annually, which would then be transferred to the fund if the amendment is approved by voters.
The Budget Stabilization Fund was last utilized to offset revenue shortfalls during the 2008 and 2009 recession. House Budget Chairman Lawrence McClure, R-Dover, justified the mandated transfers by noting that “when money is left in what is known as ‘unallocated’ general revenue, government has a tendency to spend it.'”
The movement on this constitutional amendment comes as lawmakers continue to finalize the state budget for the 2025-2026 fiscal year, with ongoing discussions around potential federal spending cuts and various tax break proposals.
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