The voters of Florida overwhelming approved the Constitutional Amendment increasing the homestead exclusion, allowing portability of that exemption and placing further limits on property taxes. Now our local governments have to deal with the limitations this places on their finances. This is exactly why we recommended approval even though the bill had flaws and was badly written. Hopefully the Legislature will note the mood of the public by making adjustments in the implementing legislation and considering additional initiatives to help eliminate the inherent inequities for businesses and non-homestead residents.

As a result of this Amendment, Martin County’s 2009 income is now estimated to be reduced by nearly 20 million dollars. This will mean an approximate 5% cut from 2008’s $395 million budget and result in a 9% total reduction from the all time high of $411 million in 2007. On the surface, it would seem that less than a 10% cut over two years should be easy to attain. However, personnel costs have been allowed to rise to the point that they are now anywhere from 85 – 94% of the County’s various operational budgets. Compounding the problem are the salary increases already mandated by existing union contracts and current personnel policies. This leaves few places to cut except employees and/or their total compensation.

Estimates have been floated forecasting the loss of up to 100 of the County’s 900+ positions. This exaggerated number may well have been an effort to warn the public of the consequences of a yes vote, but even the more realistic estimate of 50 – 60 reductions from the 2008 workforce will be difficult to attain without innovation. Fortunately, there are many techniques used by industry that should be available to help.

The Sheriff has already offered a few early retirements and the County Administrator is advocating a similar option. If accomplished correctly, and early in the fiscal year, an attractive package can be offered that still achieves considerable savings that grow over time. Some of the practices that brought on the County’s problems such as automatic cost-of-living and longevity raises, sell back of sick leave and vacation time, and automatic overtime scheduling can be eliminated. Normally vacated positions can be left unfilled or downgraded. Excess personnel from one area can be offered another position, even in an entirely different department, that has an opening or higher priority. If these reductions are done in conjunction with modernization of labor and time intensive operations, it is possible to eliminate jobs and actually increase service

There are also areas where reductions in the size of Staff are overdue. To anyone that has been to the drivers license / tax collector’s offices in the last few years the over staffing and over equipping is obvious. In numerous visits our members consistently report 4 to 5 times as many employees/work stations on duty as “customers” - at each of their 5 separate offices. With more and more services offered by mail/computer, procedures could be streamlined and at least two of those five offices could be closed with little or no adverse affect on service.

There have been several attempts over the years to combine the Fire/EMS services of Stuart and Martin County. This offers the potential for considerable savings in several areas. Realignment of service boundaries could allow closure of at least one fire station. Adding additional trained personnel along with reducing duplicated management positions, especially at the most senior levels, could significantly reduce their multi-million dollar overtime budget. Savings on equipment and its maintenance should also be substantial.

We offer these suggestions, but the County Administrator and Constitutional Officer’s are the best judges of where savings should be made. We can only hope that they will be allowed to work these types of solutions and personnel reductions without undue influence from an election year Commission.

Plans are well underway for our 2008 Annual Dinner Meeting scheduled on Wednesday, March 26 at the Lost Lake Golf Club in Hobe Sound. Congressman, Tim Mahoney, will serve as our keynote speaker. Seating is limited and reservations are required. Please visit our website, mctaxpayers.org, to download an invitation.