CLAY COUNTY, Fla. – Clay County leaders said they are already staring at a major budget gap as they prepare the budget for the next fiscal year. And they’re warning that a statewide property tax reform proposal on the November ballot could make the situation even tougher.
In a Facebook post after a budget workshop this week, the county said staff currently projects the General Fund will run a deficit of more than $40 million due to a decrease in revenue.
At the meeting, county staff emphasized that estimate does not include any potential impacts from future property tax reform.
“Which gives us an estimated deficit at this point in the budget process of about 44.5 million,” one official said during the meeting.
What Clay County is doing now
Commissioners are still early in the budget process, but county leaders said they have already begun reviewing options to close the gap.
According to the county’s post, commissioners:
- Directed staff to look for ways to reduce software costs
- Heard from constitutional officers about their budget needs
- Discussed eliminating more than 30 frozen positions
- Planned additional budget discussions throughout the summer as they work toward a balanced budget
The next budget workshop is scheduled for July 23 at 9 a.m.
Why revenue is down
Clay County Property Appraiser Tracy Drake told commissioners part of the slowdown is connected to changes in construction activity.
Drake said new construction is down compared to the previous year.
“The residential is fairly stable but that commercial is really the difference,” Drake said.
Property tax reform adds another unknown
County leaders also pointed to the potential financial impact of property tax reform that Florida voters will decide on in November.
Clay County leaders noted the projected General Fund deficit does not factor in what could happen if the proposed changes become law.
Drake warned that while homeowners could see major savings, local governments could see significant revenue losses.
“Tremendous tax savings to the homeowners in Clay County,” Drake told commissioners. “Tremendous tax loss to the local taxing authorities.”
County commissioners said that could lead to difficult decisions because property taxes help fund everyday services.
“They want to support police. They want o support fire. They want to make sure that potholes are filled,” Commissioner John Sgromolo said during the workshop, “So that’s going to be a challenge is to figure out how that happens.”
Residents split on the tradeoff
Some Clay County residents News4JAX spoke with said they support property tax relief — but don’t always agree on what it could mean for services.
Jimmy and Miranda Moore moved to Middleburg in 2011.
Miranda said she supports eliminating property taxes if given the chance to vote as a way to provide relief.
Jimmy said he understands the appeal of savings but worries about the impact on services like first responders and parks.
“I may have to sleep in the tent tonight but I just disagree with my wife,” Jimmy said.
What’s next
Clay County commissioners will continue work sessions in the coming weeks as they try to close the projected budget gap. County officials said they will continue sharing updates as the process moves forward, with the next budget workshop set for July 23.
Meanwhile, voters statewide will decide in November whether to approve property tax reform.