Florida voters will decide Nov. 3 whether to raise the cap on the state’s budget stabilization fund, known as the rainy day fund. Local 10 News explained Amendment 1 on Wednesday.
Amendment 1 would change the state constitution. The current cap on the fund is 10% of general revenue, and the proposal would raise it to 25%. Each year, the Legislature would have to transfer to the fund either $750 million or the amount needed to reach the new cap, whichever is lower, unless certain conditions are met.
According to Local 10, the fund currently holds about $5 billion. Money could be withdrawn in three situations: a state of emergency, a drop in revenue or a one-time, critical need of the state. A withdrawal for “critical state needs” would require a two-thirds vote of the Legislature.
The state Legislature placed the amendment on the ballot. The Republican Party of Florida supports it, while Gov. Ron DeSantis opposes it and has called the plan “foolish.” Florida GOP Chairman Evan Power said the amendment would prepare the state for hurricanes, emergencies and an economic downturn without raising taxes. DeSantis argues that the additional money should be used to cut taxes and to provide grants to local governments.
How do you vote? A “Yes” vote supports the constitutional change, and a “No” vote rejects it. A “No” vote keeps the current 10% cap and no new mandatory annual transfers. For the amendment to take effect, it needs at least 60% of the votes cast on the issue.
Three constitutional amendments will appear on the ballots of all Florida voters. Amendment 2 concerns an exemption from the tangible personal property tax for property used in agricultural production. Amendment 3 concerns property tax and an exemption for homeowners (homestead).
Source: Local 10
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Source: Słoneczne Radio
