Florida Amendment 3 impacts local government budget planning

Florida's Amendment 3, a major 2026 statewide ballot proposal, is influencing local government fiscal planning. The amendment seeks to increase the standard homestead exemption to $150,000 in 2027 and $250,000 in 2028, which would reduce property taxes for owner-occupied homes but potentially decrease revenue for local services.

To prepare for the possible passage of the measure, local governments in Osceola County have implemented various austerity measures. St. Cloud approved a $231 million budget that avoids using prior year reserves, while Kissimmee approved a $321.9 million budget that utilizes $5 million in reserves, implements a hiring freeze, and defers certain capital spending. Osceola County approved a $3.11 billion balanced budget with $400 million allocated to public safety.

The Florida Policy Institute has released a new calculator to help residents understand the potential impact of the amendment. The tool allows users to see how projected revenue losses might affect municipal operations, special districts, and essential services such as mosquito control, roads, and libraries.