Florida Governor Ron DeSantis and Walt Disney Co. DIS have been locked in a battle for over a year now. A new report sheds further light on how the Mouse House is continuing to pay for its decision to stand up against the state government.
What Happened: The local governing board set up by DeSantis to administer the special governing district where the Florida Walt Disney World operates suggested this week that it is planning millions of dollars worth of spending cuts, Politico reported.
The board is eyeing cutting $8 million of the district's annual spending meant for law enforcement provided exclusively to Disney's properties, chair of the board Martin Garcia said at a public meeting, according to the report.
“That doesn't make any sense to me and it doesn't make any sense to anybody on our team that's looked at it,” Garcia reportedly said. He pointed out that Disney wasn't the only taxpayer in the district.
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Why It's Important: Before the clampdown by DeSantis and Florida, the previous board, which went by the name “Reedy Creek Improvement District” was mostly overseen by board members representing Disney's interests.
The entertainment giant could therefore run its own government in the district and enjoyed advantages such as implementing plans without having to go through the zoning commissions and building inspection departments.
All these changed when the company voiced opposition against the "Don't say gay" law passed by Florida, which prevented the discussion of sexual orientation and gender in classes from kindergarten to grade 3.
Since then, DeSantis has been following retaliatory tactics, some of which included setting up a state prison on bordering land, raising taxes, and exploring the sale of state-owned utilities.
Disney took on the governor's attack by bringing up a lawsuit in the District Court for the Northern District. of Florida
Disney closed Thursday's session down 0.58% at $85.36, according to Benzinga Pro.
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