Wakulla Government Amendment 1 Passes in Florida
Written by Ben Pingree, Wakulla County Administrator Wednesday, 30 January 2008 08:29
Amendment 1 Passes in Florida
As most of you should know by now, Amendment 1, which deals with property tax exemptions and limitations on property tax assessments, passed with 64.4% of the vote yesterday in the State of Florida. Following is an email that was sent out to Wakulla County Commissioners today by Wakulla County Administrator Ben Pingree re: what this means for Wakulla County and how we will proceed to handle this outcome.
Commissioners,
{sidebar id=1}As you will see below, and have likely heard independently by now, the voters of Florida passed the Property Tax Reform “constitutional amendment” measure yesterday. This will have approximately a $1.5M negative fiscal impact on our county’s revenue generating ability in the upcoming fiscal year and future years. While this certainly solidifies a recurring challenge to the county’s annual budget balancing process, I am writing to remind you that the Board has already proactively addressed this issue in preparation for such an event. As summarized below, you have already given staff a blueprint to follow during the upcoming budget development process should this measure have passed. Now that it has, we will engage in that process you have approved beginning with your December 2007 budget workshop, and as follows:
#1) Fight for the “hold harmless” appropriation that was promised by the state legislature as part of this property tax reform package. As you recall, the legislature promised to hold any “fiscally constrained” small county, such as Wakulla County, harmless by guaranteeing an annual appropriation to offset any revenue reduction caused by the constitutional amendment. Now that it has passed, and with the solid estimate of $1.5M dollars, we are working immediately to hold the legislature to their word. Staff is drafting a letter today that will remind them of their written promise and with your assistance and that of our contract state lobbyists (Mr. Johnston and Mr. Bruce), we will fight throughout the upcoming session to gain this baseline amount of funding. This is a critical issue for us and will become by necessity our #1 funding priority issue for the upcoming session.
#2) Craft a FY 08/09 tentative budget in accordance with Board direction. That is a “no new programs, no new positions” (for all functions supported by property tax revenues) budget at the roll back rate (essentially a millage rate that generates the same amount of revenue as was generated this FY 07/08) PLUS CPI (3% MOL) MINUS whatever the equivalent millage rate is to generate any revenues generated from the state legislature in #1, above. Per Board direction, this budget plan is to also include a modest cost of living adjustment, to be determined based on future estimates, for all county employees.
{sidebar id=1}#3) Perform a Cost Allocation Study that can spread costs for property tax supported programs out over other revenue sources, thus reducing the county’s reliance on property tax revenues. Tim Barden and OMB are taking lead on this very issue this month and with the reform measure’s passage, it has new urgency. I’ll give you an example of how this works. My salary (as one FTE employee) is presently budgeted and paid 100% from property tax revenues. However, my work product and focus is spread over programs that are funded from a wide variety of revenues, user fees, etc. The cost allocation study will look at every such employee to see, for example, should the administrator only charge 50% of his/her salary to the general fund (property tax revenue based) and 25% to a sewer fund, 10% to a road paving fund, etc. This study will be based on the actual work that is performed by all of your employees and should result in some cost sharing that will greatly enable the county to weather the challenges posed by the property tax reform measure.
There certainly are challenges and tough decisions that stand yet to be made by the Board in the year ahead. From this first new day of passed (additional) property tax reform, I wanted to thank the Board for the work they have already done in preparation for this tax reform measure. I think that their combined leadership has given staff a good set of tools and direction in how to proceed with the budget development process. Of course, I will continue (along with all county staff) to keep you well informed as this process continues to take shape. Additionally, we will do our level best to craft a tentative budget, with further Board input, that keeps the will of the voters to gain further tax relief in mind while also mitigating the potential negative impact on the county’s ability to fund the excellent local services our citizens have come to expect and deserve.
Thanks,
Benjamin H. Pingree
County Administrator
Wakulla County Board of County Commissioners
(850)926-0910
Following are links to news clips gathered by Mr. Pingree re: the vote on Amendment 1
PROPERTY TAXES
ASSOCIATED PRESS
Florida voters approve property tax amendment
TALLAHASSEE - A ballot proposal that would cut property taxes an average of $240 a year for primary homeowners passed Tuesday, easily getting the 60 percent vote it needed. With 71 percent of the expected vote counted, the proposed state constitutional amendment had 2,169,402 yes votes, or 64 percent, and 1,203,329 no votes, or 36 percent. Amendment 1 is unlikely to be the last word on property tax relief in Florida, however.
MIAMI HERALD
Tax cut receives winning assist in S. Fla.
Facing a slowing economy and years of rising property-tax values, Florida voters overwhelmingly approved a property-tax amendment.
Florida voters gave themselves a tax cut Tuesday, deciding that about $240 in property-tax relief is better than none in a campaign season cloaked in economic woe. Voters approved Amendment 1 by a 64-to-36 margin, with the most expensive real-estate region in the state, South Florida, giving it resounding approval. It is a major victory for Gov. Charlie Crist, who pushed the issue, raised $4.4 million to finance a statewide campaign, and became the face in a blitz of TV ads.
ST. PETERSBURG TIMES
Double wins put Crist in control
A budget proposal for tough times is the next challenge for the riding-high governor.
TALLAHASSEE - The biggest winner Tuesday night may have been Gov. Charlie Crist, who made two risky bets that both paid off. Crist's beloved Amendment 1 tax reform package passed easily, and the candidate he recently endorsed in Florida's Republican presidential primary, John McCain, beat back all challengers. The question is: How long will he be able to savor the victories?
ST. PETERSBURG TIMES
Voters flock to property tax relief
It's the tax cut no one seemed to love but, in the end, was too hard to pass up. Florida voters Tuesday overwhelmingly approved Amendment 1, giving themselves modest property tax relief and Gov. Charlie Crist a profound victory. The Republican governor overcame relentless criticism from unions and others fearing cuts to local government and schools. Poll after poll showed the measure falling just short of the 60 percent needed for passage. Newspapers across the state editorialized against it.
SOUTH FLORIDA SUN SENTINEL
Crist scores big with property tax win
Show us the money: Voters say even small tax break is better than nothing
TALLAHASSEE - More concerned about saving money than losing government services, Florida voters on Tuesday gave resounding approval to an overhaul of the state's property tax laws that will save the average homeowner $240 a year but could lead to fewer police and firefighters on the streets. The "yes" vote after a brief but intense campaign was a major political triumph for Gov. Charlie Crist, who became the chief cheerleader for the constitutional change.
SOUTH FLORIDA SUN SENTINEL
Florida property tax changes approved
TALLAHASSEE - Florida voters on Tuesday gave their resounding approval to a constitutional amendment that overhauls the state's property tax laws and saves the average homeowner $240 a year. The lopsided "yes" vote was a triumph for Gov. Charlie Crist, who became chief cheerleader for the plan after it was put on the ballot by the state Legislature. It was also a clear sign that voters were more concerned about cutting their taxes, or being able to move and retain their tax advantages as Florida residents, than any loss in government services that might result.
REUTERS
(Naples/Bonita Daily News, Treasure Coast Newspapers)
Florida voters approve property tax cut amendment
TALLAHASSEE, Florida (Reuters) - Florida voters on Tuesday approved a property tax reform plan that may cut local taxes by $9.3 billion over the next five years, a proposal heavily promoted by Republican Gov. Charlie Crist. With 76 percent of the precincts counted, the state constitutional amendment to increase exemptions on primary residences and expand a popular tax cap had 64 percent approval, according to the Florida Division of Elections, surpassing the 60 percent threshold needed.
ORLANDO SENTINEL
TALLAHASSEE - Florida voters irritated over their escalating property taxes overwhelmingly passed a constitutional amendment that will give homeowners back an average of $240. This likely wasn't the final word on tax cuts this year, and many predicted the resounding win could whet the appetites for bigger tax cuts in the Republican-controlled Legislature. Voters on Tuesday shrugged off warnings of dire cutbacks to public safety and school budgets to pass Amendment 1.
GANNETT NEWS SERVICE
(Florida Today, Fort Myers News Press, Pensacola News Journal, Tallahassee Democrat)
Florida says yes to tax relief
ST. PETERSBURG - Amendment 1 passed easily Tuesday night, riding comfortably on the coattails of its No. 1 supporter, Gov. Charlie Crist, and defying pollsters. "The people of Florida have spoken and they have demanded relief, tax relief," Lt. Gov. Jeff Kottkamp told a cheering crowd of about 50 supporters as the results came in. "This is a great day for Florida."
NY TIMES REGIONAL
(Gainesville Sun, Lakeland Ledger, Ocala Star Banner, Sarasota Herald Tribune)
Portability Gets Most Impact From Amendment 1
Tuesday's approval of Amendment 1 means almost all Floridians will get some relief when they open their property tax bills in November, though state and local governments will likely chip away at some of the savings. Don't Bank That Florida 'Tax Cut' Just Yet Voters approved Amendment 1 by 64 percent to 36 percent with 99 percent of the ballots counted Tuesday evening. The part of the amendment that could have the biggest impact is portability, which allows residents to keep their accrued tax savings when they move within the state.
FLORIDA TIMES UNION
Voters say yes to property tax breaks
But local officials expect the worst for their budgets
Florida voters decided Tuesday that property owners should get a tax break. So now, local government and school officials are starting to figure out how to deal with the loss of anticipated revenue. With 93 percent of the precincts counted Tuesday night, about 64 percent of voters had approved a property tax amendment, according to The Associated Press. The measure included the doubling of the homestead exemption and a 10 percent assessment cap on non-homesteaded property.
DAYTONA BEACH NEWS JOURNAL
Florida voters gave Florida taxpayers a break Tuesday, passing with surprising ease a controversial amendment to the state's constitution expected to save taxpayers as much as $9.3 billion over five years. Supporters of the measure, called "Amendment 1," touted it as a boon for the state's troubled real estate market and tax-weary home and business owners.
LOCAL 10 (MIAMI)
Property Tax Relief Proposal Wins
Gov. Charlie Crist's Tireless Campaigning May Have Helped Get Vote
TALLAHASSEE, Fla. -- Florida Gov. Charlie Crist's tireless campaigning for Amendment 1 may have helped get the ballot proposal the 60 percent vote it needed. "The citizens of Florida have spoken and today received the tax cut they deserved," Crist said. "Amendment 1 keeps the American Dream of home ownership alive." With 93 percent of the expected vote counted, the proposed state constitutional amendment had 2,545,457 yes votes, or 64 percent, and 1,419,876 no votes, or 36 percent.
PALM BEACH POST
Another tax cut unlikely this year as Democrats balk at Rubio's plans
Although Gov. Charlie Crist has promised that the successful property tax amendment Tuesday is just the first step, don't count on another property tax cut from the legislature this year. Because that constitutional amendment is projected to cut $9.2 billion in property taxes during the next five years, Senate Minority Leader Steven Geller said he doesn't expect the state Senate to cut property taxes any further in 2008. Geller, D-Hallandale Beach, pointed to the hits that local governments have been forced to take through a five-year, $15 billion property tax rollback mandate that the legislature passed last summer.
PALM BEACH POST
Tax cut's decisive approval defies odds, dismays counties
Floridians gave themselves a property tax break Tuesday. In an overwhelming show of support, voters followed the lead of Gov. Charlie Crist, approving his recommended $9.2 billion property tax cut package known as Amendment 1 as well as the Republican presidential candidate he endorsed, John McCain. And the property tax results beat tough odds, stunning local elected leaders who didn't think it would pass.
FORT MYERS NEWS PRESS
Record turnout in Lee; Republicans choose McCain, Amendment 1 passes
Arizona Sen. John McCain took a huge step to the Republican presidential nomination Tuesday in the Florida presidential primary. And Florida property owners will get a tax break thanks to passage to Amendment 1. McCain, the former Vietnam Prisoner of War, was declared the winner of Florida’s 57 convention delegates at 9:15 p.m.
FLORIDA TODAY
State, Brevard agree: Yes on 1
Some lawmakers say Amendment 1 is just the beginning of tax overhaul
Republican lawmakers from Brevard County were elated with Tuesday's passage of Amendment 1, the $9.3 billion property tax cutting measure. Municipal and school leaders in Brevard County were not. "I think it sends a strong message that people not only want tax relief, they want to see it continue," said state Sen. Mike Haridopolos, R-Indialantic, a key Senate negotiator for the proposal.
CHARLOTTE SUN HERALD
Florida voters made their opinion overwhelmingly clear Tuesday on Amendment 1: They support property tax relief any way they can get it. With more than three-quarters of precincts reporting, the property tax reform amendment was projected to pass statewide Tuesday night, garnering an estimated 64 percent of the vote. The amendment needed 60 percent approval to pass. Locally, the plan, endorsed by Gov. Charlie Crist, passed by more than a two-to-one margin in most counties.
NBC 2 (FORT MYERS)
FORT MYERS: Amendment 1 has been voted through. Many say it is the issue that pushed a record number of voters to the polls. Amendment 1 essentially doubles the homestead exemption and it means an extra $240 for most Florida homeowners. The City of Punta Gorda, the Southwest Florida Professional Firefighters and Paramedics and several other civic groups were against the measure while the governor and local real estate groups wanted people to vote yes on the property tax amendment.
TALLAHASSEE DEMOCRAT
Amendment 1 passes amid controversy
By the time voters went to the polls Tuesday the fight over Amendment 1 came down to who would win, who would lose and voter attitudes about local government's effectiveness. By the time the vote was counted, reformers won the day. Longtime homeowners were big winners, but businesses got a share of the breaks, too. The tax-reform proposal will have direct impact on local governments, homeowners and businesses and renters, customers, first-time home buyers and citizens indirectly.
ASSOCIATED PRESS TV
Florida Votes on Property Tax Amendment
Do you want to cut your property taxes? At what cost are you willing to do so? Florida voters settled those questions Tuesday as they cast their votes on Amendment 1. The property-tax cutting constitutional amendment would double the homestead exemption for primary homes except on school taxes and provide an average tax savings of $240 a year.
ABC 7 (SARASOTA)
Property tax amendment passes - Sarasota County report
SARASOTA - 68% of Sarasota County voters said yes to Amendment One...yes to lower property taxes. Sarasota County commission chair Nora Patterson, "I thought it would pass, but I didn't think it would pass by that percent." By voting yes, homeowners will now save an average of $240 a year. But city and county commissioners say that savings comes with a cost.
ORLANDO SENTINEL
Our position: Amendment 1's approval deserves smart response from government
The voters couldn't have spoken any louder or clearer Tuesday when they overwhelmingly supported the Amendment 1 property tax cut. Let's see if Florida's cities and counties finally get the message. Expect to hear them whine about "dire" cuts, but remember how fat their budgets grew over the past few years when property values skyrocketed. That said, it's equally important lawmakers don't get the wrong message from Tuesday's vote.
FLORIDA TODAY
Long-term fallout from Amendment 1 win may cause more problems than it solves
Take the $240 and run. That proved to be the sentiment of Florida voters Tuesday as they approved the Amendment 1 tax relief measure and took the state into treacherous, uncharted fiscal waters. They did it although the amendment gives the most tax relief to those who need it least, longtime Florida residents. It also shifts more of the already unfairly distributed tax burden to first-time buyers, owners of second homes and businesses.
DAYTONA BEACH NEWS JOURNAL
COLUMN: A good night for Crist; now what's the next for tax reform?
People who are for Amendment 1 argued it would spark future reforms to the state's tax structure. People who are against Amendment 1 argued it would short-circuit other, more promising attempts to fix the state's tax structure. Amendment 1 passed Tuesday night. And coupled with the strong showing of his presidential candidate, John McCain, it looked like Gov. Charlie Crist had a very good evening, indeed.
This information originally published on January 30, 2008.
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