Lucy Mends was very nervous about vacationing at Disney World in central Florida this spring. From her home in Elkridge, Maryland, the 46-year-old romance novelist had read about a law approved by Governor Ron DeSantis in 2022 that banned discussion of gender identity and sexual orientation in public school classrooms for children between kindergarten and the third grade.
Mends became more alarmed over a series of bills introduced during the current session of the state legislature that would extend that ban to include high school students and prohibit transgender people from amending their birth certificates and receiving transition-related care such as hormone therapy and puberty blockers for minors. “They’re demonizing trans people, and it’s very scary,” she said.
Under pressure from its employees, the Walt Disney Company publicly opposed the so-called Don’t Say Gay law last year. An angry DeSantis retaliated by denouncing Disney as the “Magic Kingdom of woke corporatism” and signed a bill in February aimed at seizing control of the self-governing special district near Orlando that the corporation has been running ever since Disney World opened its doors in 1972.
In any event, Mends went ahead with her Disney World holiday plans. Showing solidarity with the company was a big factor. “Spending money at Disney is like contributing to the fight against DeSantis,” said Mends. “They aren’t going to be deterred by a fascist, and I’m very supportive of that.”
The ongoing dispute between DeSantis and his state’s second-largest employer has ramped up in recent days. Disney sued the Florida governor in a Tallahassee federal court in late April for allegedly punishing the company for exercising its first amendment freedom of expression rights by criticizing DeSantis over last year’s Parental Rights in Education Act. The suit seeks to void the governor’s takeover of Disney’s self-governing district after he recently filled its five-member board with allies.
That board in turn countered with its own litigation in an Orlando state court that aims to reaffirm its control over design and construction decisions in Disney World’s special district, despite a series of last-minute decisions reached by the previous pro-company board that would strengthen Disney’s autonomy vis-a-vis the state government.
The eventual outcome of the legal tug-of-war between DeSantis, who is widely expected to formally announce in the coming weeks whether he will seek the Republican presidential nomination in 2024, and Disney will have profound implications for the Sunshine state overall and the regional economy of central Florida in particular. The company pays more than $1bn in state taxes every year, and the lion’s share of those revenues is generated by the sprawling 25,000-acre (10,000-hectare) Disney World amusement park complex that employs an estimated 65,000 people.
One potential casualty may have emerged. Owing to a $578m tax break approved during DeSantis’s first term in office, Disney had been planning to transfer about 2,000 high-paying creative jobs from California to a new regional hub of operations in south-east Orlando as early as this year. That major personnel move is reportedly now on hold in the absence of any specific timetable.
The Guardian’s requests for an interview with a Disney executive or spokesperson went unanswered. The governor’s press secretary turned down a similar request on the grounds of what he called the newspaper’s “bias and agenda [which] come before news or truth”.
But DeSantis has been very vocal about the company ever since Disney’s then chief executive officer Robert Chapek publicly voiced his “disappointment” over the enactment of the Don’t Say Gay bill in 2022. In his recently published book The Courage to Be Free: Florida’s Blueprint for America’s Revival, the governor blasted Disney for its supposed “support of indoctrinating young schoolchildren in woke gender identity politics” and boasted about how “things got worse for Disney” during DeSantis’s stewardship.
That kind of talk worries many folks in central Florida. For starters, such rhetoric squares poorly with the Republican party’s traditionally pro-business policies and staunch opposition to excessive government intervention.
“He’s clearly evolved from being a Tea party, small-government, Heritage Foundation type of guy to a more Trumpist, anti-woke leader,” said Congressman Darren Soto, a Democrat whose ninth district encompasses a chunk of the Disney World premises. “It’s a personal vendetta, he has been attacking anybody who stands in his way, and it’s terrible for the economy of central Florida.”
Some prominent figures in the region’s hospitality industry feel the governor’s various crusades to further restrict abortion rights, scrap tests on African American affairs for advanced placement high school students, and establish a new law enforcement body to investigate rare instances of voter fraud are misplaced.
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“He needs to focus on the shortage of workers and insurance issues, but DeSantis is more busy with his presidential race,” said hotelier Jan Gautam, who has seen his commercial property insurance premiums soar by an estimated 300% in just the last two years. “He has completely neglected those problems, and his approach has to change.”
Among the issues at stake in its showdown with the governor is Disney’s unique degree of autonomy as a private corporation, and the charter that its executives negotiated with local government officials in 1967 was a sweetheart deal by any yardstick. It created the Reedy Creek Improvement District that allowed Disney World to function like a quasi-county government in charge of its own roads, construction services, building permits, fire department and waste collection services.
According to Richard Foglesong, a political science professor and author of the 2001 book Married to the Mouse: Walt Disney World and Orlando, the company has at times acted like “a state within a state”. Disney attorneys have invoked the original charter to exempt the company from paying certain fees and taxes that were adopted by state and local government bodies during the intervening years. A case in point was a tax that Orange county officials assessed in the 1990s to help cover the budget of its sheriff’s department, which in the company’s view did not apply to Disney because the charter protected it “in perpetuity” from paying taxes adopted after 1967.
A similar circumstance applies to impact fees that were introduced to partly defray the cost of construction of new highways and libraries and the establishment of new police and fire departments in Orange county as it entered a period of explosive growth in the 1980s. “They got powers that were excessive and that weren’t granted to competitors that arrived later like the Universal Orlando theme park,” said Foglesong. “That strikes me as unfair.”
But the scholar parts ways with DeSantis over the governor’s motives for seeking to end the company’s privileged status and bring its operations under greater state government control. “Disney’s powers need to be addressed, but he’s attacking the company for all the wrong reasons,” he said. “When you look at DeSantis’s statements, it’s pretty clear that he is punishing Disney for talking back to him and challenging him on what can be taught in public schools. Its lawsuit is right on with respect to what it is alleging about the governor’s violation of Disney’s first amendment rights.”
Even some of the governor’s sympathizers feel that DeSantis may have overstepped the accepted boundaries of his authority in the case of Disney. As he was awaiting a shuttle bus outside the Walt Disney World Swan hotel on Thursday morning, a 60-year-old Oklahoma City resident expressed unease over DeSantis’s ham-fisted tactics.
“I generally support him and I understand where he’s coming from, but on this one he may have gone a little too far,” said James, a frequent visitor to Florida who is active in Republican party circles back home but declined to give his surname. “It seems a little vindictive to me – and if I were a local, I’d be concerned about the 65,000 Disney World employees and all the affiliated ancillary businesses and the jobs they represent.”
