Robert J. Eger III. How can the Current Collins Institute Research Inform Tax & Revenue Policy? Investigate Proposed Policy Changes Affecting Florida.
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Presentation on theme: "Robert J. Eger III. How can the Current Collins Institute Research Inform Tax & Revenue Policy? Investigate Proposed Policy Changes Affecting Florida."— Presentation transcript:
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
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.”
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
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
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
Three Potential Impacts 1.FY 2011 as revenue baseline 2.Annual Adjustment 3.Scope a.All taxing governments
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
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%
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?
Recommendations on SJR 1906 or other Revenue/Expenditure Limits Baseline Annual Adjustment Scope Constitutional Amendment v. Statutory? DFS Transparency Timeliness