DeSantis Wants State Government To Control Disney World’s Special District

Topline

The Florida government could assume control of the special district that oversees Walt Disney World, Gov. Ron DeSantis (R) said Monday, after he and state Republicans abruptly voted to wrest control of the district away from Disney and spooked local lawmakers over possibly having to cover the costs.

Cinderella Castle at Walt Disney World on March 3 in Lake Buena Vista, Florida.

Getty Images for Disney Dreamers Academy

Key Facts

DeSantis and the Republican-controlled legislature enacted a law in April dissolving the Reedy Creek Improvement District after Disney opposed HB 1557—known to critics as the “Don’t Say Gay” law—which restricts classroom instruction on sexual orientation and gender identity.

Responding to criticism that getting rid of Reedy Creek could burden local county governments and raise residents’ taxes, DeSantis suggested it’s “more likely” that the state would take control to “make sure that we’re able to impose the law and make sure we’re collecting the taxes.”

There are a “whole bunch of things” the state could do when it comes to overseeing Reedy Creek, DeSantis suggested—including raising salaries for the district’s firefighters —saying he’d “much rather have the state leading that effort than potentially having local governments.”

The governor said the state would force Disney to pay back Reedy Creek’s outstanding debts—which total nearly $1 billion—rather than force local counties to take on those costs.

State law stipulates a special district’s assets and liabilities will be transferred to the local governments that have jurisdiction over it if it’s dissolved—which in this case would likely be Orange and Osceola counties—“unless otherwise provided by law or ordinance.”

DeSantis said state Republicans are working on proposals regarding the special district, which is set to be dissolved as of June 1, 2023, which would likely be passed during the state’s legislative session next year.

Crucial Quote

“The path forward is, Disney will not control its own government in the state of Florida,” DeSantis told reporters Monday. “Disney will have to follow the same laws that every other company has to follow in the state of Florida. They will pay their share of taxes, and they will be responsible for paying the debts.”

Chief Critic

“The [DeSantis] regime will abolish and seize control of a local government in retaliation for opposing his extreme agenda,” state Rep. Carlos G. Smith (D), who represents the Orlando area where Walt Disney World is located, tweeted Monday in response to DeSantis’ comments. “Let that sink in.”

Big Number

More than 25,000 acres. That’s how much land the Reedy Creek Improvement District covers, as Walt Disney World’s property is approximately twice the size of Manhattan. The special district, first established in 1967, essentially enables Walt Disney World to govern itself, taking care of municipal functions like fixing roads, fire department services, granting construction approval and managing waste that would typically be handled by the local government.

Key Background

DeSantis and Florida Republicans took action against Reedy Creek after Disney issued a statement after HB 1557 was signed, which said its “goal as a company is for this law to be repealed by the legislature or struck down in the courts.” The law dissolving Reedy Creek has sparked concerns about what the effects of it going away would be. Local officials in Orange County warned that being forced to shoulder Disney’s debts and pay for services could be “catastrophic” to the county’s budget and raise local property taxes. DeSantis had said he and lawmakers would pass measures to address those concerns, but his comments Monday marked the first indication of what specifically their proposals could look like.

What We Don’t Know

How Disney will respond. The company has not yet responded to a request for comment on DeSantis’ proposal and has more generally not released any response yet on Reedy Creek’s imminent dissolution. The special district itself—which is technically independent from Disney, though the company handpicks its board members and voters—said in a statement to investors before the law was enacted that it believed the government didn’t have the authority to dissolve the district while Reedy Creek still has outstanding bond debts, suggesting the company could take legal action in response. If Disney chooses to fight Reedy Creek’s dissolution, the company could also argue the state violated its First Amendment rights by retaliating against Disney over HB 1557, legal experts note. Analysts have pointed out, however, that if the special district is dissolved it could actually benefit Disney financially by lessening the company’s tax burden, so it’s also possible the company could let the dissolution go forward.