Orlando city leaders are starting to plan for a future with less money. Florida voters approved Amendment 3 in last week’s election. The amendment expands homestead property tax exemptions, which means homeowners will pay less in property taxes. Cities and counties, though, will have less money to pay for everyday services.
At this week’s Orlando City Council meeting, the mood was anything but relaxed.
“Devastated” on the Dais
City Commissioner Patty Sheehan didn’t hide her frustration. She said she was devastated when the amendment passed, and that many voters probably didn’t think about how lower property-tax revenue would hit city budgets.
Sheehan also warned that the city can’t just trim its way out of the problem. In her words, “we can’t tighten the belt if we don’t have pants.”
She pointed to basic services that people take for granted, like street lights and traffic signals. Losing funding for those, she said, could have serious consequences.
Police and Fire Take Up More Than Half the Budget
Public safety is the biggest piece of the puzzle. According to Sheehan, police and fire services make up about 54% of the city’s budget. She is counting on a proposed state legislative session, expected after the amendment takes effect, to keep police and fire funding whole. No date has been set for that session.
What the City Has Already Done
Mayor Buddy Dyer said Orlando has already taken steps in this year’s budget to prepare for a possible shortfall. Those steps include:
- Pausing new positions in every department except public safety
- Creating a budget stabilization fund
- Setting aside some of this year’s savings to protect future budgets
Still, Dyer said efficiency measures alone won’t make up for major cuts to the city’s general fund. That fund pays for things like garbage collection and other quality-of-life services. He said the city will face some difficult decisions.
Dyer also noted that the amendment fell about 10 points short of passing in Orange County, even though it passed statewide. Winter Park voters rejected it too.
The Ripple Effect Across Orange County
Orlando isn’t the only one feeling the pressure. Orange County School Board Chair-elect Angie Gallo said the sheriff’s office expects to lose close to 300 officers because of the revenue changes. That could affect school resource officers, whose cost is shared between the school district and the sheriff.
What Happens Next
City leaders haven’t released an exact dollar figure for the expected shortfall, and the amendment’s full impact won’t be clear until state lawmakers act. For now, Orlando residents should expect more budget debates at City Hall in the months ahead, especially over services like trash pickup, parks and street maintenance.