FAC Webinar Series – TABOR Thank you for joining us for today’s webinar! Please mute your phones to reduce background noise and feedback. Please do not put your phone on hold – music disrupts the presentation. Please feel free to ask questions during the presentation using the chat function or by ing

2011 LEGISLATIVE WEBINAR SERIES FLORIDA ASSOCIATION OF COUNTIES FEBRUARY 4, 2011 TABOR

OVERVIEW What is TABOR? A brief history of TABOR TABOR: 2011 and beyond Current FAC activities How you can help

What is TABOR? A state constitutional amendment that limits the growth of revenues.  Macro – all revenues  Micro – individual revenue sources Growth is based on a formula…  Inflation (CPI) + Population Growth Requires budget reserves at specific levels Requires tax refunds Requires voter approval to override the limit.

TABOR’s Promises? “Government (taxes) should not grow faster than the people’s (economy) ability to pay and if so government should ask the people.”  Reduces tax burden  Reigns in government  Prosperity for businesses and communities  More accountability  Lets voters decide on taxes  Cuts wasteful spending  Increases government efficiency

Why Florida doesn’t need TABOR Local Governments already have a variety of caps  Ten mill cap for property taxes (constitution)  Legislature controls other local tax sources  Property taxes capped at personal income + new construction Counties have reduced property taxes by $2.5 billion during the last four years TABOR’s inflation PLUS population formula doesn’t capture the growth in costs of the goods and services purchased by the state Federal and State mandates, as well as unexpected costs, cannot be accommodated without squeezing existing programs Initiatives such as class size reduction, expansion of health coverage, and creative new pathways our of poverty are difficult if not impossible

Why Florida doesn’t need TABOR Can’t fix it  If it doesn’t work, getting it back out of the constitution would be extremely difficult Flexibility is removed  Limits fail to fully account for and address the dynamic fiscal environments, continuously changing circumstance, and emergencies that confront state and local communities Elected leaders become powerless  Arbitrary spending limits do not allow legislators and local officials to make the tough decisions for which they were elected; allows them to escape accountability Money and influence become the game  Statewide campaigns to pass a constitutional override are very costly. This favors special interests that have big budgets

History of TABOR Adopted in Colorado in 1992 – Colorado version includes:  Voter approval for tax increases  Revenue limits  Expenditure limits  Revenue refunds TABOR has lead to a deterioration of public services in Colorado. Voters there suspended TABOR in 2005 for a five-year period Several attempts to adopt “TABOR-Like” proposals in other states Taxation and Budget Reform Commission rejected in 2007 and the Legislature has failed to garner support last three years

TABOR:2011 and Beyond TABOR beyond 2011 FAC strategy has been to prepare for 2011 – 2012  Sen. Mike Haridopolos becomes Senate President  Announced candidate for U.S. Senate  Rep. Dean Cannon becomes Speaker of the House  Governor Rick Scott – unknown  2010 Elections – supermajority Republican control  2012 Ballot…or sooner

TABOR Current FAC Activities Advocacy and Education:  Widespread dissemination of position statement  Targeted advocacy and education of “key” legislators  Enhanced lobbying support  Enhanced communications and political support  Development of potential campaign strategy Performance reporting  2010 Property Tax Report  Detailing positive county performance in “holding down” property tax rates and actual tax revenues. Actual report data can be found here:  counties.com/Pages/Advocacy/Hot_Topics/Property_Taxes.aspx counties.com/Pages/Advocacy/Hot_Topics/Property_Taxes.aspx Coordination and Coalition Building

Current FAC Activities Editorial Board Tour Meetings with House and Senate  Haridopolos (February 9)  Cannon (February 10)  Weatherford (February 10) Lobbying Team Senate Proposal (Thursday, February 10)

How you can help Educate  County Family  Make sure staff are familiar with TABOR and educated on its impacts  Make sure your elected officials know TABOR and the damage it will do to your community  Invite FAC to present or help provide materials  Friends & Supporters  Start talking with those that will be impacted by TABOR: Non-profits, social services, other governmental districts, schools, etc.  Your Community  Talk to your business community (Local Chambers) – they will have the biggest impact TABOR will impact recruitment Economic Development Growth  Host Community Forums on TABOR and Taxation

Themes – What to say Very inflexible Ties your hands May cause unnecessary delays One size fits all is a problem Infrastructure (and public safety) “The devil is in the details” (formula)

Questions? Contact: John Smith, Legislative Director (850) Cragin Mosteller, Communications Director (850)

FAC Legislative Webinar Series Don’t forget to register for our other webinars!  Growth Management – February 11 th  Pension Reform – February 18 th  Public Safety – February 25 th