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2010 Budget Projection Bleak For Hillsborough

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By JOHN W. ALLMAN

jallman@tampatrib.com

Published: March 19, 2009

TAMPA - Hillsborough County is facing a budget deficit of at least $110 million in fiscal year 2010 due, in large part, to reduced property tax revenue.

Eric Johnson, the county's management and budget director, delivered the bleak news Wednesday to the county commission during a regular meeting.

"The challenges are greater than even we anticipated last week," Johnson said.

In fact, the numbers are so fluid, he said, that they changed overnight, forcing him to revise the estimated deficit before the meeting.

The shortfall is coming from a variety of places: Based on state estimates, property tax revenue is expected to be down about $94 million. Coupled with a diminished library district tax, Johnson said, that total grows to $100 million.

"We don't think we will have growth in property tax revenue the next five years," he told commissioners.

There's an additional $10 million deficit expected from other decreased revenue such as sales tax that will affect county operations in 2010.

The tourist tax also is expected to continue dropping. It is down about 18 percent, or $4.5 million, Johnson said.

"Thank God we had the Super Bowl or it would have been worse," he said.

The tourism tax doesn't help pay for day-to-day county services, but reduced tourism revenue hinders the county's ability to attract more visitors.
Hillsborough County must figure out how to bridge the gap before Oct. 1, when the new budget year begins.

Johnson said after the meeting that the county must look for savings and evaluate what services to cut back while trying to minimize the effect on residents.

"We can cut to any level," he said. "The challenge is what level of service did you receive, and what can we afford?"

During the meeting, Commissioner Mark Sharpe urged the county to discuss the possibility of merging services such as information technology or payroll with those of other local governments to save money.

"That was a very sobering report," he said.
County Administrator Pat Bean said the county has talked to officials in Plant City and Temple Terrace but has yet to schedule a meeting with Tampa leaders.

Reporter John W. Allman can be reached at (813) 259-7915.

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