Municipal leaders unsure how they will make up lost revenue
By Rich Pollack
Florida’s homestead exemption will be increasing next year — meaning additional savings to large numbers of homeowners — following the passage of Amendment 3, but lawmakers must still meet to hammer out details.
Under Florida’s new constitutional amendment, the homestead exemption for qualified homeowners will increase from $51,411 this year to $150,000 in the next fiscal year and $250,000 the following year.
Statewide, about 62% of voters approved Amendment 3, clearing the 60% threshold required for constitutional amendments, according to unofficial results on Nov. 3.
In Palm Beach County, the number in favor hovered right at 60%, showing almost the same support for the amendment as occurred across the state.
During the process of determining how to implement the legislation, state Rep. Peggy Gossett-Seidman said, legislators will most likely look at ways to address some of the concerns raised by opponents of the amendment, who fear it will create an unfair burden on local governments that could see dramatic cuts in revenue.
“Even though voters approved the amendment, we will have to go back and address the issue because it is not in perfect form,” the Republican from Highland Beach said. “It will still be revisited on multi levels. We will still go look at issues that might put counties and cities in peril.”
Among some of the options that could be explored could be creating a pool of funding to support any city or county struggling with the outcome, she said.
Even though there is still room for improvement, she said, the amendment is one step closer to tax relief for Floridians.
For some, the approval of Amendment 3 is a disappointing blow that could mean taking important decisions out of the hands of local officials and giving that power to state leaders.
Cities could, for example, ask the Legislature for an appropriation to fund a project that is no longer feasible with now-limited tax dollars, but that request would have to be approved by the Legislature and avoid a veto by the governor.
In Delray Beach, Marjorie Waldo, president and CEO of the nonprofit Arts Garage, says the passage of Amendment 3 will mean a shift in the popular venue’s planning for the future.
“Now our focus turns to protecting what makes our communities work,” Waldo said. “We had hoped that Tallahassee would respect local independence and give cities and counties the flexibility to keep investing in the arts, culture and services residents value, but this change to Florida statutes will almost certainly make that impossible.”
In the lead-up to the vote, municipalities as well as nonprofit organizations had expressed concerns about how much revenue would be lost because of the amendment and began looking at ideas to compensate for that.
“For Arts Garage and nonprofits like ours across Florida, individual and corporate philanthropy will be critical in helping to fill any funding gaps that follow,” Waldo said.
South Palm Beach Town Manager Jamie Titcomb, who previously served as executive director of the Palm Beach County League of Cities, believes the passage of Amendment 3 will further reduce home rule and the ability of cities to govern their communities.
“There’s no doubt the state government wants to constrain the funding and operational flexibility of local government,” he said.
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