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Four things about Pinellas County's proposed $2 billion budget

 
Published July 22, 2015

CLEARWATER — Pinellas County's government continues to claw its way back from the Great Recession.

Property values continue to rise. Building activity has doubled over last year. Tourists flock here in record numbers.

County commissioners on Tuesday got their first peek at the proposed $2 billion budget, where a spike in revenue should make this year's financial negotiations relatively pain free.

Here are some highlights of the budget, which would go into effect Oct. 1:

No change in tax rates

The tax rate won't go up this year, but tax bills still could be higher.

New construction and rising property values of nearly 7 percent will produce an extra $25.8 million for the county's general fund.

The rollback rate, which would bring in the same amount of money as this year, isn't likely to be considered. At its current rate, the average county home­owner whose home is valued at $100,000 would pay $527.55 next year. If the rate was rolled back, the average homeowner would pay $500.41, saving $27.14.

The unincorporated area millage rate, paid by owners whose property is not in one of the county's 24 cities, remains at 2.0857, adding $208.57 to the bill.

Divvying up the surplus

The commission had about $15 million in surplus to spend. But it has $45 million worth of requests.

Sheriff Bob Gualtieri will get $6 million to complete the second half of his new salary plan. Health and Human Services will use $1 million for a pilot program to track frequent users of mental health services to develop a plan to cut costs. The county's information technology support is getting $4.3 million to upgrade software and equipment.

The budget includes about $800,000 to pay for county fire rescue missions in water and other challenging places.

Among the smaller but notable expenses are $100,000 to set a $12.50 minimum wage for full-time employees who work for the County Commission, and $100,000 to implement a yet-to-be approved wage theft ordinance.

Trouble ahead for transportation fund

Despite plenty of positive economic indicators, the forecast is not so bright for the pot of money the county uses to repair and maintain roads, bridges, sidewalks and rights of way.

Funded by local and state gasoline taxes, the transportation trust fund took a hit during the recession as the number of gallons sold dropped. The fund of about $28 million is on the rise again, but won't keep up with inflationary costs, according to county staffers.

The 6-cent local gas tax expires in 2017, and the commission is expected to renew it, but that won't cover the deficit that will begin in 2019. Among the options: transfer money from the general fund, increase the local tax by up to 5 cents, or cut service.

State legislative decisions hit home

The state's rejection of Medi­caid expansion will drain county coffers.

Using federal dollars to expand Medicaid coverage would offset some county expenses for indigent health care, though it's hard to pin down just how much the county would save if lawmakers passed some form of expansion, said Lourdes Benedict, director of Health and Human Services.

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The county's low-income health care program costs about $21 million, and most of those clients would likely be eligible for coverage under some form of expansion, said Mary Scott Hardwick, the county's governmental liaison.

Lawmakers also failed to craft a solution to a long-simmering dispute between the state Department of Juvenile Justice and Florida counties over how to split the cost of housing young detainees.

Counties want the cost-sharing ratio, which had them paying 57 percent, reduced to a 50-50 split. Pinellas officials got word last week that the county in 2016 will be responsible for nearly 82 percent of the total cost, which will siphon thousands of dollars more per month from the general fund, Hardwick said. The county says it's already owed nearly $12.6 million from previous years of overbilling.

Contact Tony Marrero at tmarrero@tampabay.com or (727) 893-8779. Follow @tmarrerotimes.