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City, County Hone Budget Ax As Amendment Forces Cuts

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By ELLEN GEDALIUS and MIKE SALINERO, The Tampa Tribune

Published: January 31, 2008

TAMPA - Government workers were bracing for layoffs Wednesday and local officials were looking at which public services to cut after voters overwhelmingly passed a property tax amendment that will slice city and county revenue by tens of millions of dollars.

The property tax amendment approved Tuesday is expected to have a $12 million impact on Tampa and $70 million on Hillsborough County. The city currently receives about $162 million annually in property taxes; the county, about $800 million.

Leaders at City Hall and the County Center said layoffs are inevitable because personnel costs are about 80 percent of their operating budgets.

County Administrator Pat Bean said layoffs will include top administrative staff.

"I don't want the end result to be that people that leave our organization are all at the lower end of the pay scale," Bean said. "I want to make sure no one is spared just because they're at a certain level."

Mayor Pam Iorio said the city "will go through a process of identifying vacancies and, unfortunately, full positions, making sure we do it in a way that's as fair as possible."

Even without the amendment's passage, she said, layoffs would have been likely because of a slowing economy and tax rate cuts mandated by the Legislature.

The challenge, Iorio said, is to figure out how to make cuts without residents noticing a significant change in the level and quality of city services.

Iorio said she will not raise fees to help offset deficits because she doesn't want to charge more for services during tough economic times.

The city parks department, with its $37 million budget, could be especially hard hit, said Santiago Corrada, neighborhood services administrator.

"I would imagine they're going to be looking at some reductions," Corrada said.

Iorio plans to meet with the city council Feb. 13 to discuss the budget. That same day, county commissioners are holding a budget session.

County Commissioner Al Higginbotham, an Amendment 1 supporter, said residents sent a clear message to government to make do with less.

"Is it going to be unpleasant as a decision-maker? Yes, but I was put in this position to make those decisions."

Commissioner Kevin White said he's worried programs for the poor will be cut.

"Even though this provides minimal tax relief to our citizens, the greater damage is going to be in cutbacks in services and potential job losses for our county employees," White said.

58% Approval In County

Despite opposition from government worker unions, Amendment 1 enjoyed broad support in Florida, passing with 64 percent of the vote. In Hillsborough, about 58 percent of voters supported the constitutional amendment.

Sixty percent was required for passage.

The amendment doubles the homestead exemption from $25,000 to $50,000, although the savings will be less because school taxes are exempted. Homeowners also will be allowed to transfer their Save Our Homes tax benefits to a new homestead. Businesses can exempt up to $25,000 of tangible property, and will be protected by a 10 percent cap on annual valuations.

The Tampa Police Department doesn't expect to escape the budget-cutting process. The department is looking at ways to be more efficient, possible reorganizations and what positions could be eliminated, spokeswoman Laura McElroy said. The department does not plan to lay off patrol officers or dispatchers.

"Our priority is to maintain the same level of service," McElroy said. "If you call 911, you should not know there have been cuts."

During last year's cuts, the department had to trim $3 million from its roughly $120 million budget. At least seven people lost their jobs, but no street-level police officers were eliminated.

Iorio said she doesn't plan to cut from the fire department; she wants to hire more firefighters to staff a new station in New Tampa.

The county probably will not be able to shield the public safety sector from cuts. Law enforcement and fire and rescue services account for about $480 million of the $1 billion in annual operating costs. One effect might be more delays in plans for jail expansion.

County Budget Director Eric Johnson said it's a mistake for tax reform advocates to suggest that $70 million in reductions can be made without touching public safety. He and other county officials objected to statements made last year by Gov. Charlie Crist accusing local governments of using scare tactics in suggesting police and fire departments would be cut if property taxes were reduced. "I guess nobody gave him a civics lesson on how much of local government spending is on public safety," Johnson said.

Schools Under Pressure

Budget-cutting started last year, when the Legislature passed a plan that forced local governments to cut their tax rates. The county eliminated 442 county jobs, including 97 full-time positions.

The city implemented a hiring freeze, which remains in effect. Only critical positions are being filled. Iorio also laid off about 120 employees and made service cuts, mainly affecting the parks department.

Though schools are not supposed to be affected by the tax cuts, Hillsborough's school system has been looking at improvements to efficiency for more than a year, Superintendent MaryEllen Elia said.

She noted that schools face possible funding cuts next year because of a stagnating state economy. "But we're going to wait and see what we need to do to make it through and make sure this has the least effect possible on our classrooms," Elia said.

Reporter Ellen Gedalius can be reached at (813) 259-7679. Reporter Mike Salinero can be reached at (813) 259-8303.

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