Florida to Vote on Budget Stabilization Fund Cap
Voters in Florida will decide whether to set a 25% cap on the state's emergency savings to avoid future tax hikes.
Updated on Oct. 27, 2026 in Saving
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Florida voters will decide in November 2026 whether to approve Amendment 1, which proposes increasing the state budget stabilization fund cap to 25% of general revenue. This ballot measure aims to improve emergency preparedness without raising taxes.
Why it matters
The proposal addresses how Florida manages its rainy-day funds to stay prepared for natural disasters and economic downturns. By adjusting the statutory cap, the state aims to maintain higher savings levels, which helps the government respond to financial shocks without needing to implement tax hikes.
The budget stabilization fund has grown significantly from $1.5 billion in 2019 to $5 billion today. Approval of Amendment 1 would mandate annual transfers of up to $750 million to reach the proposed cap.
The players
Florida House of Representatives
The state legislative body that passed the proposal via joint resolution HJR 5019.
Florida Senate
The upper chamber of the state legislature which voted to advance the amendment.
Ron DeSantis
The Governor of Florida who oversaw state budget decisions and previously vetoed a $750 million transfer to the fund.
Stetson University
A private university in Florida that conducted the October 2026 survey on voter support for the ballot measure.
The details
Amendment 1 would establish a new constitutional ceiling for Florida’s budget stabilization fund. If voters pass the measure with at least 60% support, the Legislature must transfer the lesser of $750 million or the necessary amount to reach the 25% cap annually. This structural change is designed to ensure consistent reserve accumulation, following earlier legislative debates regarding the appropriate size of state savings, including a $750 million veto by Governor Ron DeSantis earlier this year.
Timeline
The budget stabilization fund stood at $1.5 billion in 2019.
Governor DeSantis vetoed a $750 million transfer to the fund earlier in 2026.
Stetson University released survey results in October 2026.
Florida voters will decide on Amendment 1 in November 2026.
Money Landscape
The proposal marks a shift in how Florida treats its emergency reserve targets compared to historical fund levels. This legislative push reflects an broader ongoing effort to codify rainy-day savings policies after years of substantial growth in state revenue reserves.
This ballot measure aims to stabilize state finances to help avoid tax increases during future economic downturns or emergencies. While it does not directly change household tax rates, it impacts the state's long-term ability to fund services without levying new fees on taxpayers.
The takeaway
The proposed constitutional change highlights the state's ongoing debate over how much cash should be kept in reserve to protect against future emergencies. Voters should review their local ballot materials before the election to understand how the 25% cap compares to previous reserve levels.
Further reading
Learn more about strategies for rainy-day funds at Saving.
Source note: This article includes information reported by Florida Politics - Campaigns & Elections. Lobbying & Government..
Live Poll
Should states prioritize increasing rainy-day fund caps over providing immediate tax relief to residents?
