Orlando budget faces possible hiring freeze if tax amendment passes

Orlando is preparing its next city budget around a property-tax question that Florida voters, not City Council alone, will decide in November.

During a July 13 budget workshop, city officials discussed a possible hiring freeze, leaving vacant positions unfilled, delaying projects and scaling back some resident programs if voters approve a constitutional amendment that would increase the homestead exemption for non-school property taxes.

What Orlando’s proposed budget includes

The proposed fiscal year 2026-27 city budget is about $1.88 billion, roughly $81 million above the currently adopted budget, according to Spectrum News 13.

The proposal does not raise Orlando’s current millage rate of 6.65 mills per $1,000 of taxable property value. Citywide property-tax revenue is still projected to grow because property values have increased.

The city’s general fund supports major services including public safety, transportation and parks. Under the current proposal, general funds would total about $780 million.

That expected growth does not eliminate the concern about the proposed state constitutional amendment. Spectrum News 13 reported that Orlando could see a $30 million to $35 million reduction in property-tax revenue by fiscal year 2028, rising to $45 million to $50 million by 2029, if the changes take effect.

What the statewide amendment would change

The Florida Legislature approved HJR 1-F, known as “Save our Homes from Excessive Property Taxes,” and filed it with the secretary of state on June 16. The measure is not yet in effect. It must receive at least 60% approval from voters at the November 2026 general election.

If approved, the amendment would increase the current $50,000 homestead exemption for non-school property taxes to $150,000 in 2027 and $250,000 in 2028 and thereafter. The Florida Senate record says the amendment would take effect January 1, 2027.

The change would apply to non-school property taxes. It would not eliminate school-district levies covered by the proposal.

Orlando’s contingency measures are not final cuts

Orlando officials have discussed or proposed freezing hiring and leaving vacant positions unfilled through fiscal years 2028 and 2029 if the amendment passes. The city also plans to create a property-tax reform stabilization fund using budget savings, according to Spectrum News 13.

Mayor Buddy Dyer warned that projects already planned or approved could be delayed or canceled and that some programs residents value could be scaled back. Those are potential responses to a future revenue loss, not an adopted list of service reductions.

The city has not approved a final set of cuts tied to the amendment. Residents should also keep Orlando’s budget process separate from the statewide vote: the city budget is still being finalized, while the amendment remains subject to voter approval.

What Orlando residents should watch

The city’s official meeting calendar lists September 14 and September 28 as the first and second public budget hearings for fiscal year 2026-27. Local reporting has identified October 1 as the planned final budget action, but residents should check the city calendar for any schedule change before relying on that date.

The larger statewide decision comes in November, when Florida voters will decide whether the homestead-exemption changes take effect. Until then, Orlando homeowners should not assume their property-tax bills have already changed.

The immediate issue for the city is planning: how to protect public safety, transportation, parks and other services if a statewide constitutional change reduces future local-government revenue.

Sources

Look for updates to this story

Discover more from Interactive News

Subscribe to get the latest posts sent to your email.