Amendment 3 passes in Florida; Jacksonville could face up to $200M budget deficit

Florida voters have approved Amendment 3, expanding property tax relief for homeowners across the state. The measure passed with 62% approval, overcoming the required 60% threshold.

The approved amendment increases the property tax homestead exemption to $150,000 in 2027 and $250,000 in 2028.

Property taxes account for nearly 64 cents of every dollar in revenue collected by the city of Jacksonville, with school district taxes remaining the only portion unaffected by the amendment.

Jacksonville City Council President Nick Howland estimated that the loss of tax revenue will create a budget deficit of up to $200 million in 2027 and $300 million in 2028. Howland indicated that addressing the revenue shortfall may require establishing a special council committee.

The impending revenue drop has already impacted municipal funding decisions. The Jacksonville City Council Finance Committee previously withheld 35% of city grant money allocated for non-profit organizations until the election results were finalized.

Councilman Rory Diamond criticized Mayor Donna Deegan’s administration regarding past budget discussions, contending that council efforts to reduce spending ahead of the vote were subverted. Diamond called for immediate spending reductions, including a hiring freeze, salary cuts in the mayor’s office and a 25% salary cut for city personnel earning more than $100,000 annually. He also criticized grant allocations for community programs.

“Every effort we made, to work with the mayor, to cut the budget, to get ready for this, was played against us and they tried to subvert every single cut and successfully did so,” Diamond said. “And now we have a budget that is not ready for what’s coming.”

“I’m gonna ask for a 25% cut on the salaries of anyone making more than $100,000 a year for the city of Jacksonville,” Diamond said. “Enough with the stupid programs, enough with the non-profits with their nose in the trough.”

Councilman Rahman Johnson pushed back against Diamond’s stance, arguing that municipal initiatives should be evaluated carefully rather than dismissed. Johnson challenged Diamond’s assessment of council proposals and city programs.

“Peluso lives in a fantasy land if he thinks that we’re not gonna cut right away,” Diamond said. Johnson countered that Diamond’s comments were not rooted in reality.

“But to call programs stupid programs,” Johnson said. “I think it’s important, Mr. Chair, that we look at all the programs intelligently,” Council member Jimmy Peluso offered a different view on how the city will manage the deficit, suggesting that municipal projects would face timeline delays rather than outright cancellation.

Peluso cited potential delays for road resurfacing, drainage projects, infrastructure work and new public libraries, while also questioning future funding for the Kids Hope Alliance, a city funding source for at-risk youth.

“I think there’s just going to be a lot of delays, right?” Peluso said. “So it’s not so much that things will be cut out entirely, but if you were expecting a new library, maybe now it’ll be delayed two more years.”

Reflecting on funding for youth programs, Peluso questioned the city’s long-term capacity. “But now I do question how much money we’re really gonna have to be able to do that and actually make a lasting impact.”

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