FAC Webinar Series – TABOR

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2011 LEGISLATIVE WEBINAR SERIESFLORIDA ASSOCIATION OF COUNTIES

FEBRUARY 4, 2011

TABOR

OVERVIEW

What is TABOR?

A brief history of TABOR

TABOR: 2011 and beyond

Current FAC activities

How you can help

What is TABOR?

A state constitutional amendment that limits the growth of revenues.

Macro – all revenuesMicro – individual revenue sourcesGrowth is based on a formula…Inflation (CPI) + Population GrowthRequires budget reserves at specific levelsRequires tax refundsRequires voter approval to override the limit.

TABOR’s Promises?

“Government (taxes) should not grow faster than the people’s (economy) ability to pay and if so government should ask the people.”

Reduces tax burdenReigns in governmentProsperity for businesses and communitiesMore accountabilityLets voters decide on taxesCuts wasteful spendingIncreases government efficiency

Why Florida doesn’t need TABOR

Local Governments already have a variety of caps Ten mill cap for property taxes (constitution) Legislature controls other local tax sources Property taxes capped at personal income + new construction

Counties have reduced property taxes by $2.5 billion during the last four years

TABOR’s inflation PLUS population formula doesn’t capture the growth in costs of the goods and services purchased by the state

Federal and State mandates, as well as unexpected costs, cannot be accommodated without squeezing existing programs

Initiatives such as class size reduction, expansion of health coverage, and creative new pathways our of poverty are difficult if not impossible

Why Florida doesn’t need TABOR

Can’t fix it If it doesn’t work, getting it back out of the constitution would be

extremely difficult

Flexibility is removed Limits fail to fully account for and address the dynamic fiscal

environments, continuously changing circumstance, and emergencies that confront state and local communities

Elected leaders become powerless Arbitrary spending limits do not allow legislators and local officials

to make the tough decisions for which they were elected; allows them to escape accountability

Money and influence become the game Statewide campaigns to pass a constitutional override are very

costly. This favors special interests that have big budgets

History of TABOR

Adopted in Colorado in 1992 – Colorado version includes: Voter approval for tax increases Revenue limits Expenditure limits Revenue refunds

TABOR has lead to a deterioration of public services in Colorado. Voters there suspended TABOR in 2005 for a five-year period

Several attempts to adopt “TABOR-Like” proposals in other states

Taxation and Budget Reform Commission rejected in 2007 and the Legislature has failed to garner support last three years

TABOR:2011 and Beyond

TABOR beyond 2011

FAC strategy has been to prepare for 2011 – 2012 Sen. Mike Haridopolos becomes Senate President

Announced candidate for U.S. Senate Rep. Dean Cannon becomes Speaker of the House Governor Rick Scott – unknown 2010 Elections – supermajority Republican control 2012 Ballot…or sooner

TABOR Current FAC Activities

Advocacy and Education: Widespread dissemination of position statement Targeted advocacy and education of “key” legislators Enhanced lobbying support Enhanced communications and political support Development of potential campaign strategy

Performance reporting 2010 Property Tax Report

Detailing positive county performance in “holding down” property tax rates and actual tax revenues. Actual report data can be found here:

http://www.fl-counties.com/Pages/Advocacy/Hot_Topics/Property_Taxes.aspx

Coordination and Coalition Building

Current FAC Activities

Editorial Board Tour

Meetings with House and Senate Haridopolos (February 9) Cannon (February 10) Weatherford (February 10)

Lobbying Team

Senate Proposal (Thursday, February 10)

How you can help

Educate County Family

Make sure staff are familiar with TABOR and educated on its impacts Make sure your elected officials know TABOR and the damage it will do

to your community Invite FAC to present or help provide materials

Friends & Supporters Start talking with those that will be impacted by TABOR: Non-profits,

social services, other governmental districts, schools, etc.

Your Community Talk to your business community (Local Chambers) – they will have the

biggest impact TABOR will impact recruitment Economic Development Growth

Host Community Forums on TABOR and Taxation

Themes – What to say

Very inflexible

Ties your hands

May cause unnecessary delays

One size fits all is a problem

Infrastructure (and public safety)

“The devil is in the details” (formula)

Questions?

Contact:

John Smith, Legislative Director(850) 922-4300jsmith@fl-counties.com

Cragin Mosteller, Communications Director(850) 922-4300cmosteller@fl-counties.com

FAC Legislative Webinar Series

Don’t forget to register for our other webinars!

Growth Management – February 11th

Pension Reform – February 18th

Public Safety – February 25th