The county faces a challenge of historic proportions due to the combined effects of the economic recession and the real estate market downturn. County revenues have decreased over the last two years and are forecast to decrease further in the near future.

In the last two years, property tax revenue decreased $55 million due to the impacts of Legislative roll-backs and Amendment One. In fiscal year 2008, the Florida State Legislature required Pinellas County to roll back revenues by 7 percent. The Legislature also implemented a property tax cap, limiting future increases in property taxes. In fiscal year 2009, voters approved Amendment One, resulting in the "doubling" of the homestead exemption (school taxes exempt) and implemented the portability of the Save Our Homes exemption.

In fiscal year 2010, we expect a dramatic decrease in taxable values. The Property Appraiser estimates an 11.4% decrease in property tax revenue. In addition, the county forecasts significant decreases in all other revenue sources. We also anticipate a decrease in FY2011. The total shortfall to the general fund budget over the planned period is expected to be approximately $85 million.

For additional details, please refer to the Budget Message in the FY2010 Budget document.