Robert J. Eger III

How can the Current Collins Institute
Research Inform Tax & Revenue Policy?
• Investigate Proposed Policy Changes Affecting
Florida Local Governments
• Assist in Policy Evaluation
• Provide Information for Alternatives to Legislative
Action

Senate Joint Resolution 1906
“The creation of a new section in Article VII of
the State Constitution to limit state and local
government revenues and require voter
approval of new taxes and fees.”

Recently - Specific to Ad Valorem Tax
• Examples
• Amendment 10 - Save our Homes (Implemented FY 1995)
• Amendment 1 (Implemented FY 2008)

Proposed – SJR 1906
• Taxes, Fees, Assessments, Licenses, Fines, and
Charges for Services

Florida Statute 129- Establishes Balanced
Budget
• Effectively Requires
• Limit on Revenues ↔ Limit on Expenditures

Florida Statute 200.186
• Millage Rates
• Affected by
• Florida Per Capita Income Growth
• Voting majorities

Baseline
•

Revenues collected in FY 2011
Annual Adjustments
•
CPI for the south region AND rate of population change
•
•
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Property tax revenue limit
•
Property tax revenue in the prior calendar year plus annual local growth
•
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Boundaries of local government
School districts use enrollment change to replace population change
Adjusted for property tax revenue changes approved by voters
Excess revenue
•
Local Budget Stabilization Fund
•
•
Maximum 3% of last completed fiscal year’s revenue collection
Additional excess revenue or revenue not used for stabilization fund
•
•

Held in separate cash reserve
Considered revenue in 1st or 2nd year after collection of the excess revenue
Use of Stabilization funds
•
•
Shortfalls of general revenue fund
Emergencies
•
•
Substantial harm to population or property
Declared by governor

Three Potential Impacts
1. FY 2011 as revenue baseline
2. Annual Adjustment
3. Scope
a. All taxing governments

Vary Revenue Baseline from SJR 1906
• Using FY1997 & FY 2006
 Projected FY2008 Revenues (54 of 67 counties reporting)

Annual Adjustment
• South Region CPI + Population Change

Scope
• All county governments
• Component units
• Dependent units

FY1997 Base

FY 2006 Base
• Average County --100.74%
of Actual FY2008 Revenue
• Average County -- 112.40%
of Actual FY2008 Revenue
• Counties by Population
• Counties by Population
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< 50,000 -- 109.62%
50-250,000 -- 92.65%
250-500,000 -- 97.09%
500-1,000,000 -- 97.41%
> 1,000,000 – 100.93%
Revenue Effect
92.65% to 109.62%
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< 50,000 -- 108.73%
50-250,000 -- 116.68%
250-500,000 -- 114.93%
500-1,000,000 – 104.35%
> 1,000,000 -– 118.99%
Revenue Effect
104.35% to 118.99%

FY2011 revenue baseline maybe artificially low

Specific price index rather than the CPI
• CPI for South Region based on population
 Population < 50,000
 Population 50,000 to 1.5 Million
 Population > 1.5 million (only affects Broward & Miami-Dade)
 Palm Beach, Hillsborough, & Orange approaching 1.5 million
• Local measure
 County Unemployment, County Per Capita Income, County
Population Change, County In-Out Migration of Businesses?
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Scope
◦ Component Units, Dependent Districts, and/or Enterprise Funds
Exempted?

Recommendations on SJR 1906 or other
Revenue/Expenditure Limits
• Baseline
• Annual Adjustment
• Scope

Constitutional Amendment v. Statutory?
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DFS
• Transparency
• Timeliness