Budget knives resharpened

Bay area governments brace for another round of slashing if voters okay tax changes.

By AARON SHAROCKMAN, and BILL VARIAN, Times Staff Writers
Published November 3, 2007

Local governments fresh off a first round of budget cuts are already preparing for what's next.

Cities and counties across the Tampa Bay area are beginning to calculate their potential revenue shortfalls if the Legislature's proposed tax changes are approved by voters in January.

The estimates are preliminary for most governments, and none includes the impact of portability. But even in their infant state, one thing is certain:

Local governments would lose millions of dollars next year.

Hillsborough officials said Friday the county would lose at least at least $57.8-million in property taxes under the plan. In Pinellas County, the number is closer to $40-million.

St. Petersburg would lose at least $8.7-million. Clearwater would lose more than $3-million.

It all means that if voters approve the plan, more tough decisions are coming.

"We have really accelerated and begun the process of next year's budget, assuming this gets passed in January," said St. Petersburg Mayor Rick Baker.

Governments have not identified specific cuts yet; those decisions are likely months away.

But unlike in the spring and summer - when local government leaders forcefully opposed massive property tax reductions - governments on Friday seemed resigned to their fate.

"We'll deal with whatever comes through," Clearwater Mayor Frank Hibbard said.

If the changes pass, most governments will have had their general fund budgets cut by at least 10 percent in two years' time.

St. Petersburg officials said their budget, excluding expenses for police and fire, will have shrunk about 25 percent.

Hillsborough County's government already lost about $56-million in tax revenue last year, requiring the elimination of 506 full- and part-time jobs.

But many of those jobs, at least, were unfilled.

County officials won't have the same luxury next year, said Dara Chenevert, of the county's human resources department.

"There's no longer a safe haven of available and funded positions," Chenevert said.

The state plan, which is supposed to save Florida taxpayers more than $12-billion over the next five years, would save Pinellas and Hillsborough taxpayers a combined $165-million next year, according to a Senate analysis.

According to the analysis, Pasco County residents would save $23.3-million; in Hernando, the first year savings would be $11.1-million.

Mark Woodard, an assistant Pinellas County administrator and budget specialist, said the county expects a minimum 8 percent cut to its property tax revenue.

It already absorbed a $38.1-million cut earlier this year.

Some governments, meanwhile, have yet to run the numbers.

"Next week we'll start to put the pencil to it and try to find out how bad is bad," said Tampa city budget director Jim Steffan.

The state plan caps valuations of nonhomesteaded property at 10 percent and awards an additional $25,000 homestead exemption for nonschool taxes.

The plan also allows homeowners to keep their Save Our Homes benefit when they move.

Sixty percent of voters must approve the plan for it to become law.

The referendum is scheduled Jan. 29.

"People really need to look at the overall big picture," said St. Petersburg City Council member Rene Flowers. "The long term."

Times staff writers Michael Donila, Janet Zink, Barbara Behrendt and Will Van Sant contributed to this story. Aaron Sharockman can be reached at asharockman@sptimes.com or 727 892-2273.

[Last modified November 2, 2007, 23:33:42]