Leon County already is beginning to put new measures in place anticipating a massive property tax cut that will save homeowners billions of dollars but imperil local government services.
At a June 16 budget workshop, the county commission began to scratch the surface of the potential changes that could be coming their way, thanks to likely changes to property tax revenue.
According to staff, further information will be presented at the July 14 budget workshop, where the commission will be given a service level reduction analysis and a comprehensive review of the county’s mandatory versus non-mandatory services.
At issue: a possible loss of $71 million in revenue that comes from property tax.
What the county would get in property tax revenue would need to be given to constitutional offices, such as the Leon County Sheriff’s Office, but after the bills are paid this could leave only $3.5 million for all other county services, according to projections.
A proposed constitutional amendment backed by Gov. Ron DeSantis would, if approved by voters in November, raise homestead exemptions from the current $50,000 to $150,000 in 2027 and to $250,000 in 2028. Residential property taxes to fund public schools would remain intact, but revenue for counties and municipalities would drop sharply, local officials say. The measure will need no less than 60% statewide voter support to be added to the Florida constitution.
Leon County Administrator Vince Long has been vocal in his concerns, calling the proposal a “fiscal crisis by design.”
Long introduced a “balanced budget,” which funds constitutional offices, contractual obligations, meets state-mandated service requirements, provides funding for outside agencies and even includes a 3% performance pay raise for county employees.
He also debuted some temporary solutions staff can use to stay ahead of the potential revenue impacts.
“Given the magnitude of the projected property tax reductions, I’m proposing that the county implement immediate stop-gap measures in the current fiscal year to the best position the county for the difficult decisions to be made in the coming months,” Long said.
“This includes a hiring freeze for all nonessential personnel, a freeze on nonessential travel and training not required to maintain certifications and licenses, a freeze on discretionary community sponsorships, not including those line items approved in March in your budget.”
“These measures are designed to mitigate layoffs to the greatest extent possible by leaving vacant positions unfilled, to realize cost savings that can be used to delay service level reductions and to redirect funding to one-time capital projects,” he continued.
With commission approval, the hiring, travel and training freezes will extend to the constitutional offices, such as the Leon County Sheriff’s Office and the Leon County Clerk of Courts.
According to Long, the reason to extend the freezes beyond the commission is due to the fact the offices use up 60% of property tax revenues.
“These immediate stopgap measures are important to put in place now, to provide maximum flexibility to the board six months or so from now, as we begin the decision-making process,” Long said.
The county may also enact a voluntary separation program for employees. It would be the second local government to institute that form of cutback. The City of Tallahassee’s recent buyout program hollowed out the top brass at the Tallahassee Police Department and drew more takers than expected.
“I want to make sure, if we roll out the voluntary separation program, we do it in a way where we don’t lose so many of those key performers,” Commissioner Rick Minor said.
Long said more details would come in July, but the program would be developed with “specific criteria” to avoid brain drain.
Arianna Otero is the trending and breaking news reporter for the Tallahassee Democrat. Contact her via email at AOtero@tallahassee.com and follow her on X: @ari_v_otero.
This article originally appeared on Tallahassee Democrat: Facing $71M loss, Leon County plans hiring freeze, voluntary severance
Reporting by Arianna Otero, Tallahassee Democrat / Tallahassee Democrat
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By Arianna Otero, Tallahassee Democrat | USA TODAY Network
