VOTE411 Voter Guide

Ballot Language:Proposing an amendment to the State Constitution to increase the amount of funds that may be retained in the budget stabilization fund from 10% to 25% of general revenue collections, require the legislature to transfer the lesser of $750 million or the amount required to reach 25% of the general revenue collections each year unless certain conditions are met, and allow the legislature to withdraw funds for critical state needs.Synopsis:This amendment is proposed by the Florida State Legislature. It will amend Article III, Section 19. The term “revenue collections” refers to the last completed fiscal year’s net revenue collections for the general revenue fund.This proposed amendment passed the House 100-1 and the Senate 29-4. Budget stabilization funds (BSF) are a form of savings account where states can place revenue, such as tax receipts, that will be used to finance unexpected budget deficits or emergencies. All 50 states have some form of a budget stabilization fund. The Florida BSF was created in 1992 after 83% of voters approved the Constitutional Amendment. The constitution requires that the balance of the Florida BSF not fall below 5% of revenue collections. The maximum balance allowed for the Florida BSF is 10% of the revenue collections. For example, for fiscal year 2024-2025, the amount in the BSF was 9.3% of the state’s revenue collections. The last time that Florida withdrew more money from the BSF than it deposited was in 2008 during the Great Recession.This proposed amendment would increase the maximum amount of funds that can be retained in the Florida BSF, changing the limit to 25% of annual revenue collections. The legislature would also be required to transfer funds into the BSF each year. The amount transferred would be either $750 million, or however much is needed to bring the fund up to the 25% limit, whichever is less.Under this amendment, funds could only be withdrawn from the BSF under three conditions:The legislature passes a bill to withdraw funds to pay the expenses associated with an emergency.The legislature passes a bill to withdraw funds to cover a shortfall in revenue, such as less than anticipated sales tax receipts. The legislature determines there is a nonrecurring critical state need, the principal balance of the BSF is greater than 15% of state revenue collections, and two-thirds of the legislature approves the withdrawal of funds.This amendment would also allow the legislature to suspend the annual revenue transfer to the fund under either of the following circumstances:No more than once every five years, the legislature determines that there is a critical state need that requires funding in an amount exceeding what would have been transferred into the BSF, and two-thirds of the legislature approves the suspension of the transfer.The legislature withdraws funds from the BSF during the same fiscal year for an emergency or revenue shortfall.The fiscal impact on the state is indeterminate but likely insignificant.Opponents: None known at this timeSupporters: Florida Legislature (House 100-1, Senate 29-4). A Yes Vote Would...: increase the amount of funds held in the Budget Stabilization Fund from 10% to 25% of revenue collections. Require an annual transfer to the fund equal to $750 million or 25% of the revenue collections (whichever is lesser). Define how money can be withdrawn from the fund. Allow the legislature to suspend the transfer under certain conditions.A No Vote Would...: keep the maximum allowable amount of funds in the Budget Stabilization Fund at 10% of revenue collections.