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County Welcomes TaxWatch's Free Audit

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By MIKE SALINERO, The Tampa Tribune

Published: January 4, 2008

TAMPA - Hillsborough County has invited Florida TaxWatch to audit the county's finances, despite concerns the group promises more savings than can actually be delivered.

County commissioners voted 6-1 Thursday to ask the Tallahassee-based group to analyze county government departments and look for savings. The study is supposed to be free, thanks to as-yet unnamed private contributors who will pay TaxWatch's expenses.

Commissioner Brian Blair suggested using the government watchdog group, saying the county often pays large sums to outside companies to provide expertise the county may not have in-house. In this case, Blair said, the county would be getting free advice from a group with 25 years of experience in recommending how government can be more efficient.

Commissioner Rose Ferlita, who cast the only no vote, argued the study will not really be free because county administrators will have to spend time educating the outside auditors. She noted TaxWatch specializes in analyzing state government and has little experience with cities and counties.

County Administrator Pat Bean backed up Ferlita on that point, pointing to the county's experience on a previous TaxWatch audit in 1998.

"There was a great deal of education involved," Bean said. "TaxWatch had not done a county government."

Bean said the only other county government TaxWatch has analyzed is Palm Beach County. Palm Beach commissioners did not accept any of the TaxWatch recommendations, Bean said.

Bean also said the county only realized about $2.5 million in savings out of the $40 million to $70 million Tax Watch projected the county would save if its recommendations were adopted.

"Every single recommendation was brought to the Board of County Commissioners," Bean said. "The bottom line was that while many of the recommendations were adopted, many of the ones adopted didn't actually provide a budget savings."

TaxWatch President Dominic Calabro disputed the county's numbers. He provided a news release from May 21, 2002, that stated TaxWatch could document $22 million "in cost savings, cost avoidances, innovative revenue and service improvements in Hillsborough County government."

"That was money saved that might not have been saved at very little direct cost to the county," Calabro said.
Calabro said the county implemented new budgeting policies suggested by TaxWatch, including funding a reserve account, removing restrictions on the use of certain funds to increase flexibility and requiring preparation of a financial forecast and annual financial plan consistent with the county capital improvement plan.

Deputy County Administrator Wally Hill said the budget changes were more likely because of the county's efforts to be recognized for distinguished budget presentations by the Government Financial Officers Association.

TaxWatch charged $150,000 for its previous Hillsborough audit. Calabro said the money was paid by local contributors in the private sector. He did not provide the names of the contributors.
Calabro characterized the objections by the current county administrators as unjustified grousing and Monday-morning quarterbacking. He said former Hillsborough commissioners and administrators had congratulated TaxWatch for its efforts.

"I can see where some people wouldn't like an independent set of eyes to come in," Calabro said. "It's human nature."

Commissioner Jim Norman, who was on the commission during the prior TaxWatch audit, said many of the group's recommendations were impossible for staff to implement. Norman said this time he wants TaxWatch to outline a detailed blueprint for how its recommendations are to be implemented.

"The real key here is the implementation of the actions that will actually save money," Norman said.

Bean also expressed concerns that Blair's motion to bring TaxWatch here called for the group to work under the county's internal performance auditor, who is not answerable to the county administrator. County Attorney Renee Lee said that might be a violation of the county charter because county administrative staff is supposed to answer only to Bean.

Commission Chairman Ken Hagan said he shared Ferlita and Bean's concerns but said state-mandated property tax reductions require commissioners to look for efficiencies and savings anywhere they can find them. "Property tax reform has changed the way counties operate. We simply cannot continue to operate the way we have been," he said.

Reporter Mike Salinero can be reached at (813) 259-8303 or msalinero@tampatrib.com.

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