First modification:
The Florida House of Representatives in the United States approved a project promoted by Governor Ron DeSantis, which eliminates a special district that allows Walt Disney World self-government after a disagreement between the theme park company and the governor.
Who will pay the bills? The state Lower House approved this bill after the Republican governor summoned the state legislature to a special period of sessions to urgently approve an electoral path designed by himself.
In record time, the legislation was approved and only the governor’s signature remains to take effect in mid-2023. DeSantis asked lawmakers to end the special autonomous district of Walt Disney World around its theme parks in the area of Orlando on Tuesday and Wednesday the Senate approved the measure, and this Thursday it passed its approval by the lower house, also controlled by Republicans.
“I am announcing today that we are expanding the call for what (lawmakers) are going to consider this week. So yes, they will consider the map from Congress, but they will also consider terminating all special districts that were enacted in Florida prior to 1968, and that includes the Reedy Creek Improvement District,” DeSantis announced.
The measure dictates eliminating six special districts created in 1967, a year before Florida approved its state Constitution and among which is the Reedy Creek Improvement District, where Disney operates.
The district in contention, Reedy Creek Improvement District, is located between the counties of Osceola and Orange, and allows Walt Disney World to have its own police and fire department in a territorial extension of almost 11,000 hectares.
Disney pays taxes to the Reedy Creek Improvement District and the two counties into which its resort extends, Orange and Osceola. The district also provides services such as fire response, emergency services, sewage treatment, and can even issue municipal bonds to finance infrastructure projects.
The controversial law
It all started when the entertainment giant publicly showed its rejection of the controversial law known as “Don’t Say Gay” or “Do not say gay”, promoted by the governor. Florida teachers are prohibited by law from discussing sex education or gender identity in the early grades.
Rejecting the law and motivated by pressure from its thousands of workers, Bob Chapek, CEO of Disney, announced that the company was canceling its large political donations in Florida, something that upset DeSantis, who took action against one of the largest employers. and state symbols.
How does the dissolution of the district affect Disney?
Walt Disney World paid approximately $780.3 million in state and local taxes in 2021. Removing the district would mean the company could no longer finance the improvements through municipal bonds, which carry tax advantages. It’s not clear what that would mean for Disney’s operating costs.
For some analysts, the approved legislation could increase the fiscal pressure on the residents of Orange and Osceola, who would have to pay the bill for all the services that Disney pays through the special district, including roads, fire service and water. They could even end up assuming the debt of 58 million dollars.
Half a century ago, the opening of the Magic Kingdom theme park in Orlando, one of the four that Disney currently has in central Florida, completely changed the image of a city. Orlando saw how its number of residents skyrocketed and, above all, its number of visitors who, by the millions, turn this site into one of the main tourist destinations in the world every year.
with EFE
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