Consequently, this could force consumers to cut spending as they look to pay down their debt and replenish savings. Relatedly, as individuals struggle to keep up with inflation, particularly Black, Latina/o, and middle-income households, personal savings have decreased while debt has increased. Since Florida is disproportionately dependent on general sales taxes to balance the state budget, changes in consumption directly impact spending plans. With the wind down of federal COVID-19 aid and fiscal stimulus boosts for households, businesses, and state (and local) governments, which helped boost reserves, public services, and kept millions from falling into poverty, individuals may not have the same amount to spend. Moreover, it is important to consider that the unique conditions that helped Florida recover and accumulate reserves are unlikely to repeat. Yet, while economic growth has proven more resilient than some gloomier COVID-19 forecasts predicted, it has slowed down over the past few years. It is easy to lose sight of efficient, effective, and equitable tax and spending policies when state reserves are at historic highs and revenue forecasts continue to surpass estimates. However, with state tax collections slowing down and a potential recession looming, plans to cut taxes, offer new tax expenditures, and enact short-term sales tax holidays without strategies to raise revenue will only make it harder to balance future budgets.

Additionally, the governor’s tax proposal includes new short-term sales tax holidays, year-long holidays, and permanent tax expenditures that would cost $1.4 billion, a $322 million (or 22.4 percent) increase over the current-year tax package. The governor is proposing a $114.7 billion budget, which represents an increase of $4.7 billion, or 4 percent, over the current-year budget. Ron DeSantis unveiled his spending and tax proposals for fiscal year (FY) 2023-24.

Wic approved wheat bread