Last week marked the start of Florida’s two-month Legislative Session.
Whether that fills you with excitement or dread (or boredom), a number of big issues face your state lawmakers this year. Fear not. Keep It Local, Florida is proud to publish our first annual Legislative Digest, “The Short & The Sweet.”
This one isn’t just for the policy wonks.
So, without further adieu, here are the big issues affecting your local communities this Legislative Session:
Tax Reform
First, the background…
… In 2001, the Florida Legislature replaced and consolidated seven different state and local taxes and fees into a single tax called the Communications Services Tax (CST)
… Today, the CST is a main source of general revenues for Florida’ local communities, funding a number of key public services such as local roadways, bridges, law enforcement and recycling, to name a few.
… Local governments also collect a sales tax on commercial rental property, which functions much like the sales tax individuals pay—except this applies to owners of commercial property.
So what’s going on now?
… Lawmakers have pledged to cut taxes this Legislative Session.
… Some proposals to would trim revenue for local communities; including cuts to or elimination of the sales tax on commercial rental property.
… This tax break would benefit the owners of commercial rental property.
Our take …
… Two years ago, Florida voters rejected Amendment 4 — a measure that would’ve resulted in big tax breaks for snowbirds, at the expense of local homeowners.
… We think Tallahassee should listen. Tax cuts should benefit as many Floridians as possible—not just certain industries or interests.
Municipal Pension Reform
First, the background …
… Florida’s local police and fire pensions are partially funded by something called the Insurance Premium Tax, as well as direct contributions made by cities.
… But in 1999, the Florida Legislature changed how city governments contribute to these plans.
… Now, Florida’s cities are required to use many additional revenues from the Insurance Premium Tax to fund new benefits for local police and fire unions.
… This has cost local communities more than $520 million in new “extra” benefits for unions since 1999.
So, what’s going on?
… In 2012, state authorities began giving cities greater flexibility when it comes to managing their local pension systems.
… This development has allowed Florida cities to shore up the solvency of their pension plans, rather than plowing tax dollars into “extra” benefits.
Our take …
… It’s time to respect home rule and fiscal sanity.
… Lawmakers should adopt legislation that allows municipalities to negotiate with their local unions and fund employee benefits at appropriate levels.
… Our local taxpayers can’t afford to constantly create and fund new benefits for local pensions. That’s unsustainable.
Juvenile Justice
Here’s the background …
… In 2004, the Legislature mandated that counties share in the costs for juvenile secure detention.
… At that point, county tax dollars became the primary revenue source for the Department of Juvenile Justice’s (DJJ) juvenile detention facilities.
… Four years later, the Department of Juvenile Justice (DJJ) began overbilling local communities for the juvenile detention costs.
So, what’s going on?
… Several counties appealed the DJJ’s practices and won.
… Since then, the DJJ has revised its approach, resulting in reduced costs to local communities to the tune of roughly $40 million.
Our take …
… Florida’s local taxpayers shouldn’t be forced to pickup the tab for the state’s administrative mistakes or its inconsistent practices.
… We’re living in the Information Age. It’s time for a change.
… We need a streamlined cost-sharing model will trim needless bureaucracy and improve local efforts to prevent, treat and rehabilitate troubled juveniles.
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