Legislative Update: Legislature passes state budget during Special Session

By FICPA Governmental Affairs

The Florida Legislature on Friday completed its Special Session on the state budget, passing the state’s FY 2026-27 General Appropriations Act and tax package. The Special Session was required after lawmakers were unable to reach agreement on a final budget during the Regular Session. 

Over the past two weeks, the House and Senate worked through Budget Conference negotiations to resolve differences between the chambers’ respective budget proposals. On Tuesday, the Legislature placed the budget conference report on the desk, beginning the constitutionally required 72-hour, cooling-off period before final passage. 

On Friday, both chambers took up, discussed, debated and then passed the GAA, related conforming budget bills and the broader tax package. The budget totals $114.5 billion and will likely end up lower than the previous year’s budget once finalized and signed into law. This marks a continued trend of the state reducing its year-over-year spending.  

The tax package, HB 7031E, provides approximately $150 million in relief, including a three-year sales tax exemption on impact-resistant windows and doors to support home hardening efforts, as well as the continuation of the back-to-school sales tax holiday. While the tax package provides less relief than the previous year, permanent tax exemptions adopted last year – including the repeal of the business rent tax – remain in effect.  

The budget will now be sent to Gov. Ron DeSantis, who has line-item veto authority and may review and veto specific appropriations before signing the budget into law. 

Budget Highlights 

The 2026–27 fiscal year budget totals $114.5 billion, approximately $6 million below the prior year’s budget. The 26-27 budget: 

• Includes authorization for an additional $150 million in early state debt repayment. 
• Fully funds Florida’s Medicaid and KidCare programs.
• Increases funding for public schools and K-12 scholarships by $736 million over the current year. 
• Increases per-student funding and the Base Student Allocation. 
• Raises annual investment in teacher salary increases to more than $1.55 billion. 
• Allocates $50 million for the Hometown Heroes program to assist Florida workers with home purchases. 
• Provides 4% pay increases for state law enforcement officers, state firefighters and park rangers. 
• Includes pay increases for Assistant State Attorneys and Assistant Public Defenders.  

Wins for the CPA Profession: 

• The budget fully funds the Clay Ford Scholarship at $200,000.
• The budget includes a transfer of $100,000 from the Professional Regulation Trust Fund to the Department of Business and Professional Regulation to fund unlicensed activity enforcement efforts relating to CPAs.

Of note to the profession, a budget proposal that would have restructured state auditing, including the Office of the Auditor General, did not pass.  

The House Speaker and Senate President will send the budget to the Governor for review and final approval in the next few weeks. The new fiscal year begins on July 1, 2026.  

Governor Calls Special Session on Property Tax Relief 

Gov. DeSantis announced this week that the Florida Legislature will convene in Special Session, June 1-3, to consider a property tax relief proposal. 

The governor indicated the proposal would increase the homestead exemption to $250,000, including school district levies, and could allow for future reductions or the elimination of remaining homestead property taxes. The proposed language for the joint resolution can be found here and the concurrent policy can be found here.  

Because Florida’s property tax structure is largely established in the Florida Constitution, any constitutional amendment proposal would require approval by 60% of both chambers of the Legislature before being placed on the November 2026 ballot. Voter approval of at least 60% would then be required for the amendment to take effect. 

The proposed language in the joint resolution that would be put on the November ballot appears below. 

Exempting homestead properties from taxation. Exempts the first $250,000 of a homestead’s value from taxation and requires, through general law, a schedule for full elimination.  

Ensuring funding for core services. Requires local governments to use remaining property taxes solely for core public needs including public safety, education and schools, infrastructure, and natural resources.  

Protecting small businesses. Limits future property tax assessments on businesses.  

Ensuring fairness for Florida residents. Requires any person who establishes Florida residency after January 1, 2027, to maintain Florida residency for five years prior to receiving the increased homestead exemption.  

Creating a state trust fund to assist with core local services.Establishes a trust fund to provide grants to local governments to assist with core local services including education, law enforcement, and infrastructure.  

If enacted, the amendment would take effect on January 1, 2027. 

The FICPA Governmental Affairs team will continue monitoring developments and provide updates as additional details and bill language become available. For more information, read our Advocacy Alert here and the proclamation here. 

Governor's Bill Signing Activity

As part of the annual review of passed legislation, Gov. DeSantis continues to receive and act upon bills approved by the Legislature and has already acted on more than half of the bills passed during the Regular Session. 

The governor will continue reviewing legislation and has three options for each bill: to sign it into law, allow it to become law without his signature or veto the bill. 

The state budget, formally known as the GAA, is the only bill for which the governor has line-item veto authority. 

Of interest to the CPA profession, the governor has not yet been presented HB 7031 – Internal Revenue Code which adopts the current internal revenue code and decouples Florida from certain corporate income tax provisions of the One Big Beautiful Bill to avoid substantial fiscal impacts to state revenue. 

Lauren Jones Presents at Not-for-Profit Conference 

Last week, Director of Legislative and Political Affairs Lauren Jones presented a legislative update to FICPA members during our virtual Not-for-Profit Conference. 

Jones highlighted the work of the Governmental Affairs Team and provided an overview of the team’s advocacy efforts throughout the Legislative Session. She reviewed key issues impacting the CPA profession and got members up to speed on the Legislature’s actions during the Regular Session and in the subsequent Special Sessions.

At the conclusion of the presentation, Jones looked ahead to the 2026 election cycle and provided an overview of how the midterm elections could impact state government and, in turn, the CPA profession.

Governmental Affairs Team Travels to South Florida Candidate Interviews 

Last week, Chief External Affairs Officer Jason Harrell and Manager of Legislative and Political Affairs Brayden Harrell traveled to Hollywood, Florida, to participate in the Chamber of Commerce Political Institute’s Candidate Interviews. As the FICPA previously shared, these interviews provide an opportunity for Florida’s business community to hear directly from candidates seeking legislative office. During the meetings, the team heard from a variety of candidates and reinforced the importance of the CPA profession within the broader business community. This marked the second stop in a series of candidate interview events, with the team scheduled to travel to the Tampa interviews next week.