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County finance staff outline multi‑million‑dollar hit if property‑tax amendment passes; hiring freeze in effect
Summary
Staff warned the proposed November constitutional amendment raising homestead exemptions (to $150K then $250K) and tightening non‑homestead caps could reduce county general‑fund revenue by roughly $47M in year one and $77M by year two; commissioners directed staff to prepare options and emphasized fee studies, program reviews and further budgeting steps.
County finance staff gave an initial briefing on fiscal impacts should the proposed constitutional amendment on November’s ballot pass. Office of Management & Budget director Jamie Stewart said staff modeled a scenario under which the homestead exemption rises to $150,000 on Jan. 1, 2027 and $250,000 on Jan. 1, 2028, and the annual assessment cap on non‑homesteaded property is reduced from 10% to 5%.
Stewart summarized staff’s preliminary estimate: a potential $47 million reduction in the general fund in the first year the $150,000 exemption takes effect, and a cumulative $77 million loss by the second year after the $250,000 exemption applies. Several MSTUs and county authorities would also see declines; staff noted ongoing steps already taken to reduce exposure — a hiring freeze on vacant positions, review of capital projects to reduce future operational cost growth and efforts to seek grants. Commissioners asked for a follow‑up that lays out statutorily required services and options to close gaps; staff said a full set of recommended options will return in early 2027 if the amendment passes.
