TALLAHASSEE — Florida Governor Ron DeSantis has publicly broken with the Republican Party of Florida regarding a constitutional amendment that would significantly expand the state’s financial reserves. On Monday evening, DeSantis announced his opposition to Amendment 1, which seeks to increase the cap on the budget stabilization fund from 10% to 25% of the previous year's general fund revenue.
Conflict with Party Leadership
The governor’s stance marks a notable divergence from party leadership. The Republican Party of Florida (RPOF) officially endorsed Amendment 1, stating in an X post that the measure would help "strengthen Florida’s rainy day fund so the state can handle storms, downturns, and other emergencies without raising taxes or raiding the budget." DeSantis countered this argument directly on social media, labeling the proposal a "foolish constitutional amendment." "We already have a maxed out rainy day fund and have run the largest surpluses in state history," DeSantis wrote. He argued that any additional revenue generated by the state should be directed toward lowering taxes rather than increasing savings accounts, a story we covered in Donalds Emerges as Key Backer of Florida Property Tax Measure.
Tax Relief vs. Financial Reserves
DeSantis outlined an alternative use for surplus funds, suggesting they could assist local governments with grants to exempt homestead properties from local property tax. He further noted that surplus revenue might be used to remove tolls once the property tax issue is resolved. Amendment 1 also directs the Legislature to deposit up to $750 million into the fund each year until the new 25% cap is reached, with exceptions for years when funds are needed for hurricane recovery or projected shortfalls. The last time this reserve was utilized was in 2008 during the Great Recession, as we reported in Donalds Emerges as Key Backer of Florida Property Tax Measure.
Legislative History and Requirements
The measure, identified as HJR 5019, passed the Florida Legislature with overwhelming support earlier in 2025. Lawmakers voted 100-1 in the House and 29-4 in the Senate to place it on the ballot. Legislative leaders have framed the amendment as a necessary hedge against severe economic downturns. "This is just a preparation of being prepared for the unexpected," then-House Speaker Daniel Perez told reporters in June 2025, referencing Florida's lack of preparedness during the recession of the 2000s. For Amendment 1 to become law, it requires approval from at least 60% of voters.
