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Property tax reform still unsettled
Article published on Tuesday, May 8, 2007
PINELLAS COUNTY – Property tax reform continues to concern local governments struggling to prepare budgets for fiscal year 2008.

The Florida Senate and House of Representatives adjourned this year’s regular session on May 4 without coming to agreement on ways to reform the state’s property tax system. A special session was scheduled for June 12-22.

Meanwhile local governments continue to work on next year’s budget, despite the uncertainty of what changes in state laws could mean for available revenue.

Board of County Commissioner Ronnie Duncan said May 4 that about half the county’s departments had made budget presentations. He said staff had been told to cap requests for budget increases at 2 percent.

He said departments had also been told to prepare a list of items to be cut to amount to 5 percent, 10 percent and 15 percent reductions. However, Duncan said, some of the proposals in Tallahassee, if implemented, would require cuts greater than 15 percent.

“Yesterday (May 3) in workshop, we told staff to be prepared for cuts deeper than 15 percent and to plan accordingly,” Duncan said.

If lawmakers come up with a tax reform plan by June 22, not much time will remain before the July 13 deadline to set millage rates so trim notices can be sent to property owners. If they don’t agree on a plan before July 13, nothing much can be done until next year, Duncan said.

He said several of the state’s proposals require referendums, which most likely can’t happen before July 13, and would not impact budgets until 2009 or later.

“But there’s going to be changes,” Duncan said. “And, that’s not necessarily a bad thing. The tax system overall needs major reform.”

Duncan said a state budget and tax committee, appointed by the governor, had met for the first time 45 days ago and have a year to make recommendations for reform; however, lawmakers say they can’t wait for those recommendations to make changes.

Duncan said the haste and magnitude of the proposed changes were concerns.

“Tax reform can’t be done in three weeks,” Duncan said. “But, with all due respect, we could all do with some belt tightening within reason.”

Many local governments have been telling the public that proposed tax reform plans could result in layoffs for police and fire departments. Duncan said the county is refraining from creating “hysteria.”

“We’re not sure how badly we will have to cut,” Duncan said. “It’s (creating hysteria) not good for public policy. Citizen’s expect us to do what’s right.”

What’s right includes maintaining adequate dollars in the budget for public safety, health care and other essential services, Duncan said.

“The final decision will be a board decision, not the staff or the county administrator,” Duncan said. “If we have to make cuts, we have to make sure they won’t impact delivery of essential services.”

The budget can’t be balanced on the backs of the homeless or low income residents, Duncan said. He said the county can’t close medical clinics or make cuts in areas that serve people who have no other place to go.

He said the board was looking at ways to save on non-essential and non-mandatory services. Non-mandatory services are those not required by the state or federal government or other agencies.

One example of a potential cut was the office and staff for state legislative delegates. Duncan said the county spends $1.5 million a year on three or four people to serve the local legislative delegates.

“That’s not Pinellas County’s responsibility,” he said. “That should be a state responsibility.”

Duncan said property tax reform wasn’t the only crisis facing Floridians. He said cost and availability of insurance and cost of living versus wages were two additional major problems.

He said governments can’t solve major problems with quick decisions.

“We’ve got to take baby steps toward improvements, so we’re not beating the same battle drum five to 10 years from now. We have to make decisions that will ensure in future years Florida is a great place to live and work,” Duncan said.
Article published on Tuesday, May 8, 2007
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Don Minie
homesbox.com
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