Florida lawmakers are considering a constitutional amendment that could eliminate property taxes, with a potential vote on the measure set for November 2026. This proposal has raised questions about its impact on public school funding across the state.
Currently, Florida’s public schools receive funding from both state and local sources. State funds primarily come from sales taxes, while local funds are largely generated through property taxes. Local funding makes up about 46% of the Florida Education Finance Program (FEFP), which is the main mechanism for distributing money to public schools. However, the proportion of local funding varies significantly by district, ranging from as little as 10% to as much as 90%.
The process known as required local effort (RLE) determines how much each county must contribute to the FEFP based on its property values. Counties with higher property values are expected to provide a larger share of their school funding through property taxes, while those with lower values rely more heavily on state contributions.
No county in Florida can afford to lose $1,000 per student in funding without negative consequences. Even counties like Holmes, which depend mostly on state aid, would face immediate challenges if property tax revenue were eliminated. In Walton County, where nearly 90% of FEFP funding comes from property taxes, continued operation of public schools would be at risk.
Lawmakers have recognized the complexity of this issue and previously tasked Florida’s Office of Economic and Demographic Research (EDR) with studying the effects of eliminating or reducing property taxes and offering policy solutions to offset any fiscal shortfalls. However, Governor Ron DeSantis vetoed the budget allocation for this study.
An analysis by the Florida Policy Institute earlier this year indicated that replacing lost property tax revenue would require doubling the state sales tax.
As legislative discussions continue in the coming months, more details about proposed changes to property tax policy are expected to emerge. Updates will be provided as new information becomes available regarding potential impacts on students, educators, and school communities throughout Florida.
