The County continues to face significant budget challenges due to the combined effects of the economic recession and the real estate market downturn. The General Fund, the County’s largest fund that funds most of its operations, has seen recurring revenues decrease 17% or $99M in the last three years. For the upcoming budget process for FY2011 a $40M shortfall has been forecast.

Factors affecting county revenues include the impacts of Legislative roll-backs, Amendment One, the dramatic decline in the real estate market, and the multi-year impact of the recession.

In FY2008, the Florida State Legislature required Pinellas County to roll back revenues by 7 percent. At that time, the Legislature also implemented a property tax cap, limiting future increases in property taxes.

In FY2009, voters approved Amendment One, resulting in the "doubling" of the homestead exemption (school taxes exempt) and implemented the portability of the Save Our Homes. In FY2010, taxable values decreased 11.4% due to the impact of foreclosures and the recession. This action resulted in a decrease in taxable values of 8.4%.

In FY2010, taxable values decreased 11.4% due to the impact of foreclosures and the recession. Virtually all other revenue sources also experienced significant decreases. Overall the FY2010 budget decreased $341.8M or 17.1% from the year before.

In FY2011, another dramatic decrease of 12% in taxable values is expected due to the continued impact of foreclosures and high unemployment. This decrease is expected to result in a $40M budget gap.

For additional details, please refer to the FY2011-2020 Budget Forecast.