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Officials Expecting To Make 'Deep' Cuts

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By JULIA FERRANTE, The Tampa Tribune

Published: January 31, 2008

NEW PORT RICHEY - Voters sent a clear message Tuesday when they resoundingly approved a constitutional amendment that gives homeowners bigger tax breaks: They want lower tax bills, even at the expense of services.

"Local governments have their marching orders, and we'll do what we have to do," County Commissioner Ann Hildebrand, who is seeking re-election, said Wednesday. "We cut almost $16 million from the budget last year, and from what I understand, it's going to be about another $16 million this year."

The amendment, which follows state-mandated property tax cuts last year, doubles the homestead exemption for houses valued at more than $50,000 and allows full-time residents to take Save Our Homes tax caps with them when they move.

The typical homeowner stands to save about $240 to $300 per year with the amendment. Residents also may find themselves paying new or higher fees for library or park services. The cost of a bus ride could go up. Veterans' services and elderly nutrition programs could suffer. And staff could be eliminated through attrition or layoffs, although commissioners say they hope it doesn't come to that.

Pasco County officials were not allowed to campaign against the amendment, but they made clear in public discussions that they were not in favor of it. Voters disagreed, however, approving the amendment with a 64 percent majority.
Florida counties will have the option of raising local tax rates to compensate for losses from the amendment, although it is not clear by how much. Pasco's five commissioners, three of whom are up for re-election this year, must weigh whether doing so would amount to political suicide.

Commissioner Says Cuts Are Coming

Commissioner Michael Cox said impending cuts for the fiscal year starting Oct. 1 will be "deep and severe."

He suggested that the county consolidate personnel and information technology services with those of the tax collector and other constitutional officers to cut expenses.

Hildebrand said the board must "look at everything," including its own budget. Commissioners last year slashed travel and newspaper subscription accounts and instituted a hiring freeze in April to help reduce the property tax rate by 3 percent. They also dramatically cut Pasco Sheriff Bob White's spending plan.

Personnel Director Barbara DeSimone said she expects things to get worse. The county has 240 vacant positions now, 120 of which were "thawed" because they are "essential." Of those, 52 are in the utilities department and paid for with fees, not property taxes.

How much commissioners cut will depend on how much they take in from taxes on new homes and businesses. Management and Budget Director Michael Nurrenbrock said he expects property tax collections to be flat if not below this year's levels next fiscal year. Property values also are likely to decrease.

"Have we developed a strategy? No. Am I listening to any idea that anyone comes forward with? Yes," Nurrenbrock said.

Doing 'More With Still Less'

White, whose agency stood to gain 10 additional deputies if the amendment failed, kept in line with the governor and other supporters and voted in favor of the tax reform. He said Wednesday that the change should not affect the sheriff's office, providing that the "people who control his budget" have the right priorities.

The sheriff had initially asked county commissioners for 109 new deputies for the new budget year, and all but 10 were denied. Now he will have no additional deputies.

For years, White said, the agency has been doing more with less. "Now, we're going to have to do more with still less," he said.

Cox said he would not consider raising taxes to compensate for losses unless it came down to risking public safety.

"It's going to have to be pretty bad before I would consider that," he said. "The people sent a clear message. People recognize this is not a perfect solution, but it's a ray of hope."

Commissioner Ted Schrader, who is seeking re-election on a record of reducing taxes, said he has no intension of raising taxes again.

"Certainly we saw a mandate that said people are looking at additional property tax relief," he said.

The Pasco County School District is banking on legislators making good on their promise to hold education harmless when it comes to funding cuts.

"Our state leaders made several public assurances throughout the last few weeks that education would not suffer as a result of this amendment's passage," Superintendent Heather Fiorentino said in a prepared statement.

Despite those assurances, the Florida Department of Education estimated that the Pasco school district could lose $67.5 million over the next five years if the amendment passed. Among the fallout: Teacher salaries and benefits.

Reporters Lisa A. Davis and Ronnie Blair contributed to this report. Julia Ferrante can be reached at (813) 948-4220 or jferrante@tampatrib.com.

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