The Florida House is also seeking a big boost in K-12 education funding next year, proposing an extra $601 million more for schools.
Both the House and Senate are seeking to increase K-12 education funding even more so than what Republican Gov. Rick Scott has proposed.
Scott called for $500 million in extra funding. The House would increase that by another $100 million, while the Senate has pitched an extra $650 million, or $150 million more than Scott's plan.
But the the point of contention continues to be how much of those new dollars will come from the state versus growing revenues from local property taxes.
Some Republicans in both chambers argue increasing the required local effort constitutes a "tax increase," and they're not on board with that -- especially in the Senate.
Sen. Don Gaetz, R-Niceville, who chairs the Senate budget subcommittee for education, said his panel would consider several alternatives early next week, including replacing local property taxes with state tax revenue. More here.
Some lawmakers would prefer scaling back the local dollars and counting that toward the $1 billion in tax cuts that Scott wants, or even just simply acknowledging that the increase in education spending would cut into the overall tax cuts.
"If we cut taxes here a billion dollars and raise them $500 million at home, we need to call it a $500 million tax decrease, not $1 billion," said Rep. Fred Costello, R-Ormond Beach, a member of the House education budget committee.
That chamber's plan uses Scott's method of predominantly relying on local property tax revenue -- which House Education Budget Committee Chairman Erik Fresen, R-Miami, describes as an "adjustment with no actual increase in the millage."
But even if the tax rate doesn't change, property owners' tax bills will likely still be higher because of improved property values statewide.
Fresen said the proportion of local taxes toward education declined from 2009 to 2013, "so during a time of declining tax rolls, it was essentially a tax cut," so he said this adjusts for that now that property values are rebounding.
Fresen rolled out the House proposal during a swift discussion on Thursday. The chamber unveiled its full budget plan this morning.
For K-12 education, the House recommends a total budget of $20.3 billion, with $7,232 in per-pupil funding. The current level is about $7,107 per student this year.
To fund the House's plan of an extra $601 million in K-12 education, about 78 percent of that -- or $505 million -- would come from required and discretionary local dollars. About $95 million would come from the state.
By comparison, Scott's budget proposal called for a $20.2 billion education budget with funding of $7,221 per student. He wants to increase K-12 dollars by $507.3 million in 2016-17. But only about $80 million of that would be extra state aide, while $427.3 million — 85 percent — would come from property taxes that homeowners and businesses pay
Meanwhile, the Senate's budget plan is about $50 million more than the House's and $150 million more than the governor's. It's roughly $20.3 billion, with $7,249 in per-pupil funding.
To fund its $650 million increase -- for now -- the Senate has penciled in similar proportions of local and state funding as the House and governor, but Gaetz expects that to change given his and his colleagues' discontent with that calculation.