County administrator references ‘recession budget’ for coming years
Early on during the Sarasota County Commission meeting on Nov. 4, Chair Ron Cutsinger addressed the passage of Amendment 3, which has been anticipated to reduce county property tax revenue by close to $47 million in the 2028 fiscal year and slightly more than $87 million in the 2029 fiscal year.
“We have been kind of preparing for the ‘What if?’,” Cutsinger told those assembled in the Commission Chambers of the County Administration Center on Apex Road in Sarasota.
“A lot of work to do,” he added. “Some changes ahead.”
During the board’s Nov. 17 regular meeting, Cutsinger said, the commissioners would begin discussions “on what that means for us and for the county.”
County Administrator Jonathan Lewis characterized the county’s future financial planning as mirroring “recession budget” years.
Both county and City of Sarasota leaders have talked on numerous occasions about the effects that passage of the amendment would have on their project funding abilities in the future.
On Nov. 4, the City of Sarasota issued a formal news release about the Amendment 3’s passage, noting that city anticipates the loss of about $5.6 million in revenue, which will climb in future years in accord with the ballot language.
In Sarasota County, the state constitutional amendment was approved by 62.6% of the 217,224 voters who marked the question on their ballots, as shown in the Sarasota County Supervisor of Elections Office’s unofficial vote totals on Nov. 5.
Additionally on Nov. 5, Ballotpedia reported that 4,917,829 ballots statewide supported the measure, representing 61.98% of the total vote. A note with those figures said that they last were updated at 7:09 a.m. that day, with the numbers not official until certified.
Proposed Florida constitutional amendments need the support of at least 60% of voters to go into effect.
As The Sarasota News Leader has reported, the amendment, which will take effect on Jan. 1, 2027, will increase the homestead exemption for all non-school taxes to $150,000 in 2027 and up to $250,000 in 2028. It also will restrict increases to property tax increases to the rises in the inflation rate after 2028, as the ballot measure explained.
Further, it will reduce the annual cap on assessment increases for non-homestead properties from 10% to 5%.
Moreover, as the ballot language pointed out, the Florida Legislature will be required “to prescribe a uniform procedure for counties and municipalities, for their respective levies, to increase the homestead exemption up to full assessed value …” The measure will allow special districts, “subject to referendum approval, to do the same,” the amendment says.
Additionally, the ballot language explained that the amendment “requires counties and municipalities to use property taxes solely for public safety, education and schools, infrastructure, natural resources, bond debt service, retirement benefits for employees, and operations and administration.” However, it does note, “Other expenditures may be approved by county officers or county or municipal governing bodies unless prohibited by general law, notwithstanding Article VII, Section 9(a) of the Florida Constitution, which allows counties and municipalities to levy property taxes for their respective purposes.”
An emphasis on infrastructure and limited funds in the future for other initiatives
During the Reports section of the Nov. 4 County Commission meeting, Commissioner Teresa Mast was the first member to bring up the Amendment 3 decision.
“I think there was a very clear direction” from the voters in their approval of Amendment 3, she began. That “heightens the need, for me, for infrastructure, infrastructure, infrastructure, infrastructure,” she added.
As she and her colleagues move forward with budget discussions for the coming years, Mast continued, “We’re going to have to be very selective on projects and what is going to be able to come to fruition.”
“The people have spoken,” Mast told her colleagues. “As a community, I believe we’ll be stronger for it.”
Commissioner Mark Smith added of the passage of Amendment 3, “It’s going to be challenging, and we’re going to have to make some difficult decisions, coming up. Just know that life, safety and welfare [are] the No. 1 priority of the board.”
Taking his turn to comment, Commissioner Tom Knight pointed out, “We work for the citizens, and they made their decision.”
He agreed with Mast, he said, noting that the projects funded through the county’s fourth iteration of its penny sales tax program — Surtax IV — “are infrastructure projects.”
The commission needs to focus on roadways, especially, Knight continued, along with reducing operational costs. “We need to start planning our budget right now … and we’re gonna need help from everybody. A lot of people draw money out of our budget,” he noted. “We’ll have to prioritize what’s important.”
Knight said he was going to treat the aftermath of Amendment 3’s passage the in a fashion similar to the way he treated the Great Recession, which led to a significant drop in county property tax revenue after he was elected the county sheriff for the first time in 2008.
“People do need relief,” he added, referring to property tax payments.
Following the commissioners’ remarks, County Administrator Lewis asked for “some flexibility from the board in the beginning of [2027]” in regard to the scheduling of more budget workshops.
He added that he could work with the chair on that.
“I think we would certainly all agree with that,” Cutsinger responded.
Alluding to the ballot language regarding legislative action on future property tax relief, Lewis said he did not believe the commission should have a workshop before the end of the year, given the uncertainty of what the Legislature will do.
Nonetheless, Lewis added, “There are some things that I will be bringing to the board,” starting with the Nov. 17 regular meeting.
Knight did ask Lewis whether Lewis needed any other specific action from the commissioners at that point.
“I’m bringing you a whole list of letters that we should be sending out to a variety of folks,” Lewis explained. Those would be “mostly putting people on notice that funds may not continue to exist past Sept 30, [2027].”
Further, Lewis said, “There are a handful of … construction projects the board’s just going to have to weigh in on again.” He added that he was not certain when that discussion would take place, as his staff is working on those issues.
During their budget workshops in mid-June, the commissioners formally gave staff go-ahead to proceed with a number of county construction initiatives, based mostly on how close those projects were to being ready to get underway.
Lewis did ask for a motion giving him the flexibility to schedule extra budget workshops. Commissioner Knight made it, and Commissioner Smith seconded it; the motion passed 5-0.
‘Florida voters have spoken, and we respect their decision’
The Nov. 4 City of Sarasota news release on voters’ approval of Amendment 3 offered the following information:
“ ‘Florida voters have spoken, and we respect their decision,’ ” said City Manager Karie Friling in the release. “ ‘We recognize that property tax relief is important to many residents, particularly as families continue to face rising costs. At the same time, local government must now address the financial realities associated with these changes, while continuing to provide the essential services our community expects and deserves.’ ”
The news release did point out, “The City has already been navigating substantial financial pressures associated with hurricane recovery, infrastructure needs, rising operational costs and increasing demands for municipal services. In anticipation of potential revenue challenges, the City previously implemented a hiring freeze on certain General Fund positions and has been evaluating opportunities to improve operational efficiency and reduce expenditures.”
Friling added in the release, “ ‘Over the past several years, Sarasota has faced extraordinary challenges, and our employees have continued to deliver essential services under difficult circumstances.’ ” She continued, “ ‘We must be thoughtful about how we move forward, recognizing both our financial responsibilities and the importance of maintaining the services that contribute to Sarasota’s quality of life. City staff will continue analyzing the amendment’s implementation requirements, projected revenue impacts, and potential effects on future operating budgets. This analysis will help inform recommendations to the City Commission regarding financial priorities, service delivery, organizational efficiencies, and long-term fiscal sustainability,’ ” she wrote.
“Friling emphasized that it would be premature to speculate about specific service reductions or organizational changes before a comprehensive financial analysis is completed,” the release continued.
“ ‘Our responsibility is not simply to react to this decision, but to plan responsibly for the future,’ ” Friling said in the release. “ ‘We will evaluate our options carefully, engage with our City Commission in the decision-making process, and communicate transparently with our employees and the community.’ ”
The release also noted, “The approval of Amendment 3 further reinforces the importance of the City’s upcoming strategic planning process.
“ ‘Now, more than ever,’ ” Friling continued, “ ‘we need a clear, shared vision for Sarasota’s future that identifies our community’s priorities and aligns our limited financial resources with the services and investments that matter most. Our new strategic plan must be more than a document. It must serve as a roadmap for making informed decisions, establishing measurable goals, and evaluating how we deliver core services. This process will involve our City Commission, employees, residents, businesses, and community partners. In a changing financial environment, we must be intentional about where we invest our resources and what we want our community to look like for generations to come.’ ”
The news release concluded with the note that city staff will provide more information “as its financial analysis progresses and the State of Florida’s implementation requirement of Amendment 3 become clearer.”