1. Robert J. Eger III

2.  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

3.  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.”

4.  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

5.  Florida Statute 129- Establishes Balanced Budget Effectively Requires Limit on Revenues ↔ Limit on Expenditures  Florida Statute 200.186 Millage Rates Affected by Florida Per Capita Income Growth Voting majorities

6.  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

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

8.  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

9. Revenue Effect 92.65% to 109.62% Revenue Effect 104.35% to 118.99%  FY1997 Base Average County --100.74% of Actual FY2008 Revenue Counties by Population  < 50,000 -- 109.62%  50-250,000 -- 92.65%  250-500,000 -- 97.09%  500-1,000,000 -- 97.41%  > 1,000,000 – 100.93%  FY 2006 Base Average County -- 112.40% of Actual FY2008 Revenue Counties by Population  < 50,000 -- 108.73%  50-250,000 -- 116.68%  250-500,000 -- 114.93%  500-1,000,000 – 104.35%  > 1,000,000 -– 118.99%

10.  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?

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