Budget crunch: How much will your city lose to Amendment 3?

Key Points:

• Florida's Amendment 3, which phases in significant homestead property tax cuts by 2028, is expected to cause substantial revenue losses for many Central Florida municipalities, particularly impacting smaller and rural communities reliant on residential property taxes.
• Howey-in-the-Hills faces a projected 22.5% loss of its general fund ($936,752) by 2028, prompting the town to plan for reserve fund use starting in 2027, though officials assure essential services like police and festivals will continue.
• Larger cities like Orlando will lose more in absolute terms (around $60 million, or 7.6% of general revenues), while smaller cities like Belle Isle could lose a much higher percentage of their budgets (19%), leading to spending freezes and difficult budget decisions.
• Oviedo anticipates losing over $10 million (23% of its budget) and is considering potential consolidation of law enforcement agencies to manage costs, reflecting broader concerns about maintaining services amid shrinking revenues.
• Officials across affected communities express cautious optimism that future growth might offset losses, but acknowledge tough budget choices ahead, with some smaller cities potentially facing the risk of losing municipal status if they cannot sustain basic services.