Drop in sales tax revenues threatens millions in county projects

Hillsborough County road improvements and other big-dollar projects scheduled for construction during the next six years will be delayed, perhaps indefinitely, because of declining sales tax revenues.

County commissioners learned Wednesday they need to cut $300 million to $350 million in projects they had previously approved to be funded by the half-cent Community Investment Tax. A list of possible projects to cut prepared by the county budget office included $420 million worth of road and intersection improvements.

Some of the larger projects that might be cut or delayed include a $63 million extension of Citrus Park Drive and a $50 million widening of U.S. 301 in southern Hillsborough.

A $15 million soccer complex and a $34 million expansion of the Falkenburg Road Jail might also be delayed.

The cuts have to be made because the economic downturn is causing people to spend less money. Community Investment Tax revenues are projected to be down $9.5 million from the $98.8 million the county budgeted in September.

CIT-funded projects are funded using long-term debt, such as bond issues. The amount local governments can borrow depends on their current tax collections. If tax collections are down, less money is available for big-ticket items.

County budget director Eric Johnson said the problem is exacerbated by a general tightening of credit in the wake of the nationwide banking crisis.

"The financial markets have changed," Johnson said. "It's much tougher to borrow now."

County Administrator Pat Bean said commissioners could choose to fund parts of projects, while delaying the rest. For instance, right-of-way acquisition for road improvements could go forward while construction is delayed until sales taxes pick up.

Johnson also told commissioners that two local-option gas taxes come up for renewal in 2011 and 2013. A one-cent tax, sold to voters as the "penny for potholes," expires Dec. 31, 2011. A six-cent gas tax expires two years later on the same date.

Commissioners can renew the taxes with a majority vote or put them before voters in a referendum. Johnson said he wanted commissioners to be aware of the tax expirations as they consider putting a one-penny sales tax for mass transportation on the November 2010 ballot.

In other business, the commission approved a suggestion by Commissioner Al Higginbotham that the county allow residents to view budget meetings over the Internet and comment using Twitter and other "real-time" communications.

"That would be one more step for us as a commission to show our concern for how the public is participating in the budget," Higginbotham said.

Commissioners asked Bean to