Volusia County Council warns of major revenue shortfall and sends letter to Tallahassee over proposed property tax changes

Volusia County officials told the County Council on June 2 that a pair of fast-moving proposals in Tallahassee could sharply reduce local property-tax revenue and force steep service cuts or new local charges.

At the meeting, Chief Financial Officer Ryan Osowski walked council members through analysis showing the constitutional amendment package under consideration (often described as SJR 2F in the legislature) would increase the homestead exemption to $150,000 in 2027 and $250,000 in 2028 for non-school levies, tighten assessment caps on non-homestead property and—through companion legislation—raise the vote threshold needed to approve millage increases. Osowski told council that, under current assumptions, the county faces a potential $92.8 million annual hit to three core funds (general fund, law enforcement, municipal service district) if the measures take effect as drafted.

"If this amendment were enacted, we would be looking at the same property tax valuation without a change in rates and another $92.8 million of added loss of property tax revenues," Osowski said during his presentation, adding that mandatory obligations funded by property taxes total roughly $250.8 million and leave only limited flexible recurring revenue to cover the rest of county services.

Council members pressed staff on options for closing the gap, including special assessments, user fees and sales-tax measures. County attorneys and staff warned those revenue tools are constrained by state law and can be highly litigated; special assessments, they said, must demonstrably benefit property and cannot be used simply to replace general operating revenue. Osowski and legal staff also noted that many restricted or enterprise funds (airport, water/sewer, solid waste) cannot be repurposed to fill general-fund gaps.

With the legislature preparing to act, the council debated a draft letter to state lawmakers that requested more time and a fuller statewide fiscal, legal and service-level analysis before finalizing ballot language. Members revised the draft in the meeting to remove a sentence that asked the legislature to "pause" action and to add language urging the legislature to include school funding in any relief package and to ensure reform is "real and meaningful." The council voted unanimously to send the edited letter to the county's state delegation prior to the legislature's scheduled action.

What happens next: Osowski said final taxable-value numbers will land July 1 and the county will present its recommended budget in July; however, he cautioned the fiscal picture could change rapidly if the state measures win voter approval and take effect. Council members said they expected difficult budget decisions and service tradeoffs if revenue reductions materialize.

At the meeting, Vice Chair Matt Reinhardt and other members insisted the county should press the legislature for clarity on whether the state will replace any lost school funding and on protections to avoid rapid local tax shifts. "If we lose another $92 million we'd be at a $17.7 million deficit just for our required services," Osowski said, noting the county's limited ability to reassign enterprise or restricted revenues.

Speakers: Ryan Osowski, Chief Financial Officer (presentation); George Rectal, County Manager (introducing item); council members including Mr. Kent, Vice Chair Matt Reinhardt, Mr. Santiago and Mr. Dempsey (questions and debate).

Ending: The council approved the letter to Tallahassee and directed staff to continue short-term fiscal planning; county finance staff will present final numbers and a recommended budget later in July.