Robert J. Eger III

 How can the Current Collins Institute Research Inform Tax & Revenue Policy? Investigate Proposed Policy Changes Affecting Florida Local Governments Assist in Policy Evaluation Provide Information for Alternatives to Legislative Action

 Senate Joint Resolution 1906 “The creation of a new section in Article VII of the State Constitution to limit state and local government revenues and require voter approval of new taxes and fees.”

 Recently - Specific to Ad Valorem Tax Examples Amendment 10 - Save our Homes (Implemented FY 1995) Amendment 1 (Implemented FY 2008)  Proposed – SJR 1906 Taxes, Fees, Assessments, Licenses, Fines, and Charges for Services

 Florida Statute 129- Establishes Balanced Budget Effectively Requires Limit on Revenues ↔ Limit on Expenditures  Florida Statute Millage Rates Affected by Florida Per Capita Income Growth Voting majorities

 Baseline Revenues collected in FY 2011  Annual Adjustments CPI for the south region AND rate of population change Boundaries of local government School districts use enrollment change to replace population change  Property tax revenue limit Property tax revenue in the prior calendar year plus annual local growth Adjusted for property tax revenue changes approved by voters  Excess revenue Local Budget Stabilization Fund Maximum 3% of last completed fiscal year’s revenue collection Additional excess revenue or revenue not used for stabilization fund Held in separate cash reserve Considered revenue in 1 st or 2 nd year after collection of the excess revenue  Use of Stabilization funds Shortfalls of general revenue fund Emergencies Substantial harm to population or property Declared by governor

 Three Potential Impacts 1.FY 2011 as revenue baseline 2.Annual Adjustment 3.Scope a.All taxing governments

 Vary Revenue Baseline from SJR 1906 Using FY1997 & FY 2006  Projected FY2008 Revenues (54 of 67 counties reporting)  Annual Adjustment South Region CPI + Population Change  Scope All county governments Component units Dependent units

Revenue Effect 92.65% to % Revenue Effect % to %  FY1997 Base Average County % of Actual FY2008 Revenue Counties by Population  < 50, %  , %  , %  500-1,000, %  > 1,000,000 – %  FY 2006 Base Average County % of Actual FY2008 Revenue Counties by Population  < 50, %  , %  , %  500-1,000,000 – %  > 1,000,000 -– %

 FY2011 revenue baseline maybe artificially low  Specific price index rather than the CPI CPI for South Region based on population  Population < 50,000  Population 50,000 to 1.5 Million  Population > 1.5 million (only affects Broward & Miami-Dade)  Palm Beach, Hillsborough, & Orange approaching 1.5 million Local measure  County Unemployment, County Per Capita Income, County Population Change, County In-Out Migration of Businesses?  Scope ◦ Component Units, Dependent Districts, and/or Enterprise Funds Exempted?

 Recommendations on SJR 1906 or other Revenue/Expenditure Limits Baseline Annual Adjustment Scope  Constitutional Amendment v. Statutory?  DFS Transparency Timeliness