The Central Florida Tourism Oversight District voted on Wednesday to replace perks that employees and retirees of the district received previously with a larger paycheck instead. The district board voted on a $3,000 stipend instead of Disney passes and Disney discounts that were once offered. This new offering last for two years before it is sunsetted, unless the board votes to extends these perks.
Board member Ron Peri said that the board was seeking to offer flexibility, although he understood the value of the passes. “We thought it also made sense to provide our employees and retirees who did not use the passes with a new benefit, and that is the freedom to receive the cash value of the passes instead of the passes themselves,” Peri said.
District Administrator Glen Gilzean said that talks are ongoing about a proposal to let employees purchase passes directly from Disney. The district is also working with its unionized employees to make sure that those employees receive the stipend under collective bargaining agreements.
The change comes after the previous system ended abruptly. For many years, employees received theme park benefits as a part of working for the former Reedy Creek Improvement District. This district provides government services including fire protection for Walt Disney World and the surrounding area. When Governor DeSantis led for the dissolution of the district and then the replacement of it with the Central Florida Tourism Oversight District, he hand-picked the new board to lead the district. This board objected to the perks program because it exclusively benefited Disney. The board even called for a Florida inspector general to investigate the benefits.
In 2022, the district spent around $2.5 million on the Disney benefits. Employees could sign up to receive these benefits, officials said. With them, they could then gain entry into theme parks and discounts at Disney stores and hotels. The board and the district administrator decided to end this program, which led to backlash by many of the roughly 400 employees who said they were losing perks that drew them to work in the district initially. The first replacement proposal that was floated by the district would have offered a stipend of $1,425. However, employees said their passes were worth more than that so the number was elevated to $3,000.
Along with approving this new stipend for employees and retirees, the board also approved an operating budget of more than $190 million. This also set the property tax rate at $12.95 per $1,000 of property value. That is down from the current rate of $13.90 per $1,000 of taxable value but this is still considered a tax increase because of rising property values. The districts proposed operating tax rate is 8.2% over the rollback rate, which will generate around the same amount of revenue as the current rate, excluding new construction.
This new move by the district is just the latest in an ongoing feud between Governor DeSantis and Disney. This began after Disney came out against a “don’t say gay” law last year. This led to Governor DeSantis to retaliate by seeking to dissolve the Reedy Creek Improvement District, which was eventually done. In its place, the Central Florida Tourism Oversight District was created. While very similar to its predecessor, it is governed by board members who are hand-picked by the Governor. Since this move, there are now two lawsuits in the courts. Disney sued Governor DeSantis, the board, and other Florida leaders alleging retaliation against its protected First Amendment rights. The board for the district counter-sued Disney over a development agreement that was made between Disney and the Reedy Creek Improvement District before the dissolution of district. Both of these cases are making their way through the courts and could end up dramatically changing the future of the district.
Moving forward, Disney intends to invest $60 billion in its Parks, Experiences and Products division, of which the Walt Disney World Resort is a part of. Disney has said that the development agreement is an important part of its plans moving forward. If it is upheld will be determined by the state court. The federal court could determine that the dissolution of the former district and then replacing it is an act of government retaliation and then undo many other things as well. There are lots of question marks regarding the future of the district from both of these cases.
With the end of the Disney pass and discount perks and replacing them with a stipend, it is likely quite possible that employees of the district are not seeing this new governing body in as cheery of a light as was initially seen, especially for firefighters. They have come out strongly against the removal of these perks after initially being quite optimistic about working with the district and receiving a new contract. How this all will continue to play out is anybody’s guess. Daps Magic will continue to follow developments in the district that houses most of Walt Disney World Resort and provide updates as they become available. What do you think of this most recent update? Is it a good solution? Share your thoughts and opinions in the comments below!
