Amendment 3: Clearwater plans for potential $20M revenue loss

TAMPA, Fla. - Cities and counties across Florida are preparing for possible budget cuts as voters get ready to decide whether to expand the state’s homestead property tax exemption.

What is Amendment 3?

What we know:

Florida voters will decide on Amendment 3 in November, which requires 60% voter approval to pass. If approved, the measure would lower property tax bills for homeowners but significantly strain municipal budgets across the state.

Clearwater impacts

Local perspective:

The City of Clearwater faces a potential loss of $20 million in property tax revenue over the next two years if the measure passes. On Monday, municipal leaders approved the city's 2027 budget and millage rate while preparing for possible funding reductions.

Clearwater City Councilwoman Lina Teixeira says deciding where to make cuts would be difficult.

"There's going to be a very important decisions to be made regarding what to cut and what not to cut," she said. "It's going to be very difficult."

Clearwater City Manager Jennifer Poirrier explained that municipal programs would see immediate changes if revenues decrease.

"What would take the biggest hit is our parks and rec department in terms of recreation centers," she said. "Our planning document, for example, potentially closes two of those rec centers and then the same thing with library."

To prepare for possible revenue declines, Clearwater initiated proactive measures.

"We do have a current hiring freeze going on a soft hiring freeze," Poirrier said. "Just in case the amendment does pass, it's less potential positions that would be filled."

Governor DeSantis voices support

What they're saying:

Governor Ron DeSantis voiced support for tax relief, stating local entities should adapt.

"The arguments against it are basically an argument to say, government's needs come before the needs of taxpayers," he said. "That's not the way our system was designed."

The Republican governor emphasized that state officials reduced Florida's state budget for four consecutive years.

"They've gotten almost twice the revenue that they got seven or eight years ago," DeSantis said. "If we can reduce our budget four years in a row, are you really telling me that local governments couldn't get by?"

Tampa mayor on Amendment 3

The other side:

During a groundbreaking for a new fire station on Monday, Tampa Mayor Jane Castor warned that Amendment 3 could force cuts to city services.

"A cut in our property tax would be a cut in TFR service, a cut in the Tampa Police Department service and certainly a cut in the myriad of recreational services," she said.

Unanswered questions

What we don't know:

Officials do not yet know whether Amendment 3 will receive the necessary 60% approval from voters. Cities have not yet finalized specific service closures or emergency service reductions pending the final vote.

Heading to voters

What's next:

Several municipalities, including Clearwater, are keeping hiring freezes and project pauses in place until election results are final. Voters will cast their ballots on Amendment 3 during the general election.