Florida’s property tax plan could mean ‘meaningful cuts’ to Manatee County jobs
As Manatee County budget talks started this week, officials stressed how proposed changes to property taxes would drastically cut the county’s funding.
Property taxes are one of the main funding sources for local governments like Manatee County, accounting for $463 million this year. Gov. Ron DeSantis is proposing a referendum be placed on this year’s ballot to raise the homestead property exemption from $50,000 to $250,000.
For FY27, county staff estimate property taxes would provide 19% of the county’s total revenue at $519 million. It also accounts for 56% of the general fund revenue, a fund that pays for public safety, natural resources, human resources, community and veterans services, among other departments.
During Monday’s presentation that included a preliminary budget overview, Interim Chief Financial Officer Claudia Campos said, if the homestead exemption was raised to $150,000, it would result in a loss of $81 million in revenue for the county. If the exemption was raised to $250,000, that loss would be closer to $149 million.
To that, Commissioner Jason Bearden could only say, “gulp.”
Tax cuts could devastate Manatee budget, officials say
Manatee County commissioners discussed the statewide property tax referendum throughout Monday’s budget workshop, which focused on a budget overview and department operations.
“We’re obviously talking about the budget in the backdrop of the ballot referendum,” Siddique said, while adding that he wouldn’t focus too much on it since the initiative would not immediately take effect, if approved.
“My own thoughts have been…keep things flat,” Siddique continued. “Start from there, because you can expect board members to come in — myself included — critique prior budgets, propose some re-appropriations, de-appropriations and general shifts to account for pending changes in constitution, perhaps.”
As budget talks progress, the county has already frozen hiring for many positions as it begins to prepare for a change in revenue and looks at dwindling reserves. Commissioners also talked about changes to employee healthcare in the upcoming budget that could result in cost savings.
“We have to make meaningful cuts this year, regardless of what happens with the property tax reform proposal,” Commissioner Amanda Ballard said.
Manatee County considers job cuts
Bearden said the property tax referendum would force the county to reevaluate its staffing levels.
“We’re going to have to cut jobs. That’s just point-blank where we’re at with it,” Bearden said. “If this goes through, we’re looking at cutting a significant amount of jobs within the county.”
Commissioner George Kruse said it’s important to assume the referendum, which requires 60% approval from Florida voters, will pass while planning for upcoming projects.
“I think it’s relevant for people to understand the mindset we have going into this week…we have to assume that this is going to pass in November,” Kruse said. “I like to think it’s not. I think more than 40% of people understand the negative ramifications of it, but we have to assume it does.
“The last thing people want us to do is take all their money this year and burn it in design work and planning work…and then it does pass,” Kruse continued. “Now we just burned a lot more money for no reason, because now we have to pull back on those after November.”
County officials will hold public budget hearings in September, before the budget is finalized. Meanwhile, voters will see the property tax referendum on the ballot in November.
