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The Street
The Street
Daniel Kline

DeSantis Tries Political Payback In Disney 'Woke" War

You can call Florida Gov. Ron DeSantis a lot of things (and people certainly have) but "subtle" is not one of them. The right-wing firebrand has made his enemies very clear and he's perfectly willing to use his office to strike blows at those enemies.

Those aren't just theoretical threats like the Republican presidential candidate threatening to build a prison near Disney World. That's an impractical suggestion that likely wouldn't really hurt Walt Disney (DIS), but DeSantis has made real political moves to pay Disney back for former CEO Bob Chapek taking a public stand against his so-called "Don't Say Gay" legislation.

DON'T MISS: Disney Gets a Big Win In Battle With DeSantis

A lot of major companies disagree with DeSantis' anti-LGBTQ+ policies and his stands on diversity and inclusion. Starbucks (SBUX) and Target (TGT) have openly acted against the governor's stated beliefs, but neither has publicly called out the politician by name.

Disney did that, not because Chapek wanted to, but because his employees demanded it. That led to DeSantis going after the company by singling out its "special district," one of thousands in the state, and putting it under the control of his political lackeys.

That has led to multiple court cases and a situation that will likely take years to play out, so DeSantis has made a more immediate move against Walt Disney by vetoing funds in the state's budget meant to prevent flooding in Osceola County (where Disney World is) during the next hurricane.

Disney CEO Bob Iger has made it clear that he will pull some spending from the state if DeSantis continues his was with the company.

Image source: Shutterstock

DeSantis Plays the Political Game

The population in Central Florida has grown substantially since the covid pandemic. That has led to new needs for the area including flood mitigation. DeSantis, however, used his line-item veto to remove funds from the state budget that were to be used to address that issue in Osceola and other Central Florida counties,

It's a subtle shot at Disney World, but DeSantis' veto choices targeted his political enemies and social causes he does not support. The veto list included canceling funds for a Black History Month celebration and cutting funding to the Puerto Rican Chamber of Commerce of Central Florida Resource Center which would have gone to support small businesses.

Slashing millions in funds aimed to mitigate flooding in Central Florida hits Disney where its employees live. It's not a direct blow, but it's typical of how DeSantis used his veto power, which included vetoing a number of projects in Sarasota, where State Sen. Joe Gruter, a very conservative Republican, has endorsed former President Donald Trump over DeSantis.

“The Governor is clearly upset I endorsed Donald Trump for President, and so he took it out on the people of Sarasota County,” said Gruters, Florida Politics reported. “Trump and I understand that people come first, and it’s our job to deliver clean water, jobs and a better America for the next generation. The Governor clearly sees politics differently.”

Gruter was not subtle in calling the governor out on playing politics.

“It’s mean-spirited acts like this that are defining him here and across the country,” Gruters said, according to the Sarasota Herald-Tribune.

Democrats, as you might imagine, agreed with the general sentiment.

“Unfortunately, many good projects that would have relieved Florida’s taxpayers with everything from flood water mitigation to neighborhood resource centers were vetoed because the governor is disconnected from the needs of average Floridians,” said state Rep. Rita Harris, D-Orlando, the Orlando-Sentinel reported.

Iger Has Made Disney's Position Clear

Disney CEO Bob Iger has not addressed the budget slight to Central Florida, but he has made it clear that Disney has choices when it comes to how it invests its money. He addressed DeSantis directly during his company's second-quarter earnings call.

"Regarding Florida, I have got a few things I want to say about that. First of all, I think the case that we filed last month made our position and the facts very clear and that is really that this is about one thing and one thing only and that is retaliating against us for taking a position about pending legislation. And we believe that in us taking that position we are merely exercising our right to free speech," he said.

The CEO then levied a very specific threat against DeSantis.

"We have a huge opportunity to continue to invest in Florida. I noted that our plans are to invest $17 billion over the next 10 years, which is what the state should want us to do," he shared.

Disney has already canceled a $1 billion headquarters project that would have moved over 2,000 jobs from California to Central Florida. 

DeSantis responded to that by implying that the company was never serious about the project.

"Disney announced the possibility of a Lake Nona campus nearly two years ago. Nothing ever came of the project, and the state was unsure whether it would come to fruition. Given the company’s financial straits, falling market cap, and declining stock price, it is unsurprising that they would restructure their business operations and cancel unsuccessful ventures," DeSantis shared in a statement.

Walt Disney spends over $5 billion a year on capital projects and has opened numerous major attractions at Disney World over the past few years.

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