Anthony Izaguirre, Associated Press Published Friday, April 22, 2022, 2:30 PM EDT Last Updated on Friday, April 22, 2022, 2:30 PM EDT
TALLAHASSEE, Florida (AP) – Florida Gov. Ron DeSantis has signed a bill to dissolve a Disney-controlled private government that provides municipal services for its 27,000 acres (nearly 11,000 acres) in Sunshine State.
The new law is largely seen as retaliation for Disney’s criticism of a new state law that critics have called “Don’t Say Gay” that bans teaching about sexual orientation and gender identity in kindergarten until third grade.
The entertainment giant has not publicly commented on the proposal to dissolve his government, which has been in effect for 55 years.
WHAT DOES THE LAW DO?
The bill, passed by the legislature on Thursday and signed by DeSantis on Friday, will eliminate the Reedy Creek improvement area, as the Disney government is known, and a handful of other similar areas by June 2023.
The measure does allow the areas to be rebuilt, leaving Disney and lawmakers able to renegotiate their deal between now and June 2023.
“By doing it so early, we have until next June or July to do it together, so we’re actually giving ourselves more time to think,” said Republican Senate President Wilton Simpson. “I don’t know how the end will come, but I know that this is a very worthy process that we are undertaking, and I think that whatever comes out of it will be better than what we have today.”
WHAT HAPPENS NEXT?
Although the details are far from clear, the proposal could have huge tax implications for Disney. Democratic state lawmakers who oppose the bill also warned that it could hit homeowners with large tax bills if they have to bear the costs the company paid.
Orange County Mayor Jerry Demings, whose county is partly home to Disney World, said it would be “catastrophic for our budget” if the county had to bear the public safety costs at the amusement park resort. Reedy Creek is currently reimbursing Orange County Sheriff for public safety.
“If this area disappears and they no longer pay for these public safety costs and then have to fall into other county budgets, that’s a net loss for other taxpayers in Orange County,” Demings said.
WHY DOES DISNEY HAVE ITS OWN GOVERNMENT IN FLORIDA?
The company sold the idea to Florida lawmakers in 1967 as part of plans to build a large-scale East Coast theme park that would include a futuristic city.
The city never materialized, but Walt Disney World nonetheless became Orlando’s entertainment giant, while retaining government powers that allowed it to decide what and how to build and issue bonds and provide services such as zoning, fire protection and utilities.
The Reedy Creek Improvement Area, as known to the Disney government, has received permission to build its own roads, run its own wastewater treatment plants, run its own fire department, set its own building codes and inspect Disney’s buildings. for safety.
The district had $ 169 million in revenue and $ 178 million in expenditures during the current fiscal year.
Disney is a major political player in Florida, 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 in the 2020 campaign cycle, the most recent year available, according to the Responsive Policy Center, which tracks those spending.
That same year, Disney-linked organizations donated $ 10.5 million to America’s First Action Committee, which backs former Republican President Donald Trump. Disney also contributed $ 1.2 million to support President Joe Biden’s campaign.
In response to the gender law, Disney has announced it will stop political donations in the state and will support organizations that oppose it.
WHY LIMIT THE GOVERNMENT NOW?
DeSantis criticizes Disney after the company’s public opposition to the Gender Instruction Act.
This week, as lawmakers returned to the Capitol for a special legislative session focused on redirecting Congress, DeSantis issued a proclamation allowing them to also pass legislation to remove the area to improve Reedy Creek.
For the governor, the attack on Disney was his last volley in a cultural war against policies including race, gender and coronavirus, battles that made him one of the most popular Republican politicians in the country and a likely presidential candidate in 2024.
“If Disney wants to choose a battle, they have chosen the wrong person,” the governor wrote in a fundraising email. “As governor, I was elected to put the people of Florida first, and I will not allow an awakened California-based corporation to run our state.
Republican MP Randy Fine, who introduced the bill to remove the area, said it was time for a change.
“You kick the hornet’s nest, things come out. And I will say the following: you understood me in one thing – this bill is really aimed at one company. It’s aimed at Walt Disney Co., “said Fine. “Do you want to know why?” Because they are the only company in the country that has ever received the right to self-government. “
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