What factors are affecting county revenues?

The County continues to face significant budget challenges due to the combined effects of the economic recession and the real estate market downturn. The General Fund, the County’s largest fund that funds most of its operations, has seen recurring revenues decrease 32% or $137M in the last four years.

Factors affecting county revenues include the impacts of Legislative roll-backs, Amendment One, the dramatic decline in the real estate market, and the multi-year impact of the recession.

In FY2007, the Board of County Commissioners proactively reduced the General Fund county-wide property tax rate by 10.3%.

n FY2008, the Florida State Legislature required Pinellas County to roll back revenues by 7 percent. At that time, the Legislature also implemented a property tax cap, limiting future increases in property taxes.

In FY2009, voters approved Amendment One, resulting in the "doubling" of the homestead exemption (school taxes exempt) and implemented the portability of the Save Our Homes exemption. This action resulted in a decrease in taxable values of 8.4%

In FY2010, taxable values decreased 11.4% due to the impact of foreclosures and the recession. Virtually all other revenue sources also experienced significant decreases. Overall the FY2010 budget decreased $341.8M or 17.1% from the year before.

In FY2011, taxable values decreased 9.6% due to the continued impact of foreclosures and high unemployment. This reduced General Fund revenue by $32.3M below the previous year.

In FY2012, another decrease in taxable values is expected due to the continued impact of foreclosures and the large inventory of unsold properties. This decrease of 6% or more is expected to result in a budget gap of about $21.5M.

The FY2013 Budget Forecast projects shortfalls in the next few years: A $11.9 million shortfall in FY2013, a $22.6 million shortfall in FY2014, with a long-term structural shortfall of $23-37 million.  These projected shortfalls will likely be worse than expected due to recent State legislation regarding Medicaid costs.

The predicted FY2013 shortfall will be covered by a stabilization account that had been built up for this purpose. However, in FY2014, the County will likely face additional program and service reductions to close the forecasted shortfalls.  

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