Earlier this week, Florida Gov. Ron DeSantis signed the state's $117.6 billion budget for fiscal year 2026-27 into law, touting it as another example of what he called conservative fiscal management while contrasting Florida's finances with higher-spending states such as New York.

The spending plan marks the fourth consecutive year Florida has reduced overall state spending while maintaining approximately $18 billion in reserve funds and preserving the state's coveted AAA credit rating from all three major rating agencies.

DeSantis also used his line-item veto authority to eliminate hundreds of millions of dollars in legislative spending requests before signing the measure.

"The budget that I'll sign today... will represent the fourth straight year in Florida that we've actually reduced our state budget," DeSantis said during a signing ceremony in Tampa.

The governor argued that Florida's financial position has strengthened despite rapid population growth, pointing to shrinking government payrolls, declining debt, and growing reserves.

According to DeSantis, Florida has eliminated roughly 1,300 state government positions since he took office in 2019 while growing reserves from approximately $10 billion to nearly $18 billion.

The state's constitutional rainy day fund has more than tripled during that period, while Florida has repaid more than half of all state debt accumulated since statehood ahead of schedule.

The budget also continues Florida's emphasis on keeping taxes low.

Among its tax provisions are permanent back-to-school and disaster preparedness sales tax holidays, expanded exemptions on baby products, diapers, sunscreen, and admissions to state parks, along with a second consecutive Second Amendment sales tax holiday on firearms, ammunition, hunting, camping, and fishing equipment later this year.

The budget also creates sales tax refunds for homeowners purchasing hurricane-resistant windows and doors to encourage home hardening.

Education remains the largest area of spending.

The new budget provides a record $30 billion for Florida's K-12 education system — approximately $8 billion more than when DeSantis first took office.

Per-pupil funding rises to a record $9,338, while the state allocates $1.56 billion for teacher and instructional personnel salary increases.

Florida also continues expanding one of the nation's largest school choice programs.

The budget funds scholarships for nearly 500,000 students expected to participate in the Family Empowerment Scholarship program, allowing qualifying families to use state education dollars toward private school tuition and other educational options.

Supporters say the initiative gives parents greater flexibility in choosing schools that best meet their children's needs, while critics argue it diverts funding from traditional public schools.

Beyond education, the budget includes major investments across transportation, housing, environmental protection, and public safety.

Florida will spend $14.4 billion on transportation infrastructure, nearly $1.2 billion on Everglades restoration and water quality projects, hundreds of millions toward workforce education and affordable housing initiatives, and additional funding for law enforcement recruitment, military installations, cancer research, behavioral health, and veterans' services.

DeSantis has repeatedly contrasted Florida's finances with New York's.

In the past, DeSantis has highlighted comparisons showing Florida operates with a state budget of $117.6 billion while serving more than 23 million residents.

New York, with roughly 20 million residents, operates a state budget approaching $237 billion — more than twice Florida's.

New York City's municipal budget alone exceeds $127 billion, larger than the entire State of Florida budget.

Supporters argue the comparison illustrates Florida's lower-tax, limited-government philosophy, while critics note that differences in state responsibilities, Medicaid funding, pension obligations, and local government financing make direct comparisons between the two states imperfect.

Florida nevertheless continues to attract new residents and businesses at one of the fastest rates in the nation.

State leaders attribute that growth to the absence of a personal income tax, relatively lower business taxes, school choice, regulatory reforms, and continued investments in infrastructure despite restrained overall spending.

"This will be my eighth budget," DeSantis said.

"No question that we're leaving it better than we found it. No question that we're stronger. No question that we are fiscally responsible," he said.

With the signing of the 2026-27 budget, Florida closes another fiscal year emphasizing lower spending growth, substantial reserve funds, continued tax relief, and record investments in education and infrastructure — an approach state leaders hope will continue fueling population and economic growth in the nation's third-most populous state.