Florida Gov. Ron DeSantis has done just that signed a bill dissolve a Disney-controlled private government that offers municipal-like services for its 27,000 acres in the state of the sun.
The new law is largely seen as retribution for Disney’s critics aa new state law which critics have dubbed “Don’t Say Gay,” which bans teaching about sexual orientation and gender identity from kindergarten through third grade.
The entertainment giant has not spoken publicly about the proposal to dissolve its 55-year-old government.
The bill, which was passed by the Legislature on Thursday and signed by DeSantis on Friday, would eliminate the Reedy Creek improvement district, as known as the Disney government, as well as a handful of other similar districts in June 2023.
The move allows districts to be reinstated, leaving room for Disney and lawmakers to renegotiate their agreement by June 2023.
“By doing so soon, we have until next June or July to do so, so we give ourselves more time to be thoughtful,” said Republican Senate President Wilton Simpson. “I don’t know how the end will come, but I know this is a very worthy process that we are doing and I think what comes out of it will be better than what we have today.”
Joe Burbank / Orlando Sentinel / Tribune News Service via Getty Images
While the details are far from clear, the proposal could have major tax implications for Disney. Democratic state lawmakers who oppose the bill have also warned that it could cause homeowners to be hit with large tax bills if they are to absorb the costs the company used to pay.
Orange County Mayor Jerry Demings, whose county is partially home to Disney World, said it would be “catastrophic for our budget” if the county were to bear the costs of public safety at the park complex. thematic. Reedy Creek is currently reimbursing the Orange County Sheriff’s Office for public security costs.
“If this district disappears and they no longer pay those public safety costs, and then it has to go to the other county budgets, that’s a net loss for the rest of Orange County taxpayers,” Demings said.
The company sold the idea to Florida lawmakers in 1967 as part of its plans to build an expansive east coast theme park that would include a futuristic city.
The city never materialized, but Walt Disney World nevertheless became an entertainment giant in Orlando, although it retained the governmental powers that have allowed it to decide what and how to build and issue bonds and offer services such as zoning, fire protection and utilities.
Reedy Creek Improvement District has been able to build its own roads, manage its own wastewater treatment plants, operate its own fire department, establish its own building codes, and inspect Disney buildings for safety. .
The district had $ 169 million in revenue and $ 178 million in spending during the current budget year.
Disney is a major political player in Florida, as well as in the rest of the country. Walt Disney Co. and its affiliates made more than $ 20 million in political contributions to both Republicans and Democrats during the 2020 campaign cycle, the most recent year for which figures are available, according to the Center for Responsive Politics, which keeps track of this expense.
That same year, Disney-affiliated entities channeled $ 10.5 million to the America First Action Committee, which supports former Republican President Donald Trump. Disney also contributed $ 1.2 million to support President Joe Biden’s campaign.
In response to the Gender Instruction Act, Disney announced that it would suspend political donations to the state and support organizations that oppose it.
DeSantis has criticized Disney after the company’s public opposition to the gender instruction law.
This week, as lawmakers returned to the Capitol for a special legislative session focused on redistributing Congressional districts, DeSantis issued a proclamation that also allowed them to pass legislation eliminating the Reedy Creek Improvement District.
For the governor, the attack on Disney is his last salvo in a cultural war waged by policies related to race, gender and coronavirus, battles that have made him one of the most popular Republican politicians in the country and a likely 2024 presidential candidate.
“If Disney wants to pick a fight, they chose the wrong man,” the governor wrote in an email to raise funds. “As governor, I was elected to put the people of Florida first, and I will not allow a California-based awake corporation to run our state.”
Republican Rep. Randy Fine, a sponsor of the bill to leave the district, said it was time for a change.
“Kick the wasp’s nest, things come out. And I’ll say this: You got me right on one thing: this bill is aimed at a company. It’s aimed at Walt Disney Co.” said Fine. “Do you want to know why? Because they are the only state-owned company that has ever been granted the right to self-government.”
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