floridapolitics.com · Jesse Mendoza · September 8, 2026
Tampa's $2.04B budget advances: Council clashes with Jane Castor over control of deferred funds
Tampa’s $2.04B budget advances: Council clashes with Jane Castor over control of deferred funds
Jesse Mendoza September 8, 2026 9 min 0
Tampa City Council on Tuesday advanced Mayor Jane Castor’s roughly $2.04 billion net budget for next year, but not before a political tussle broke out over who would control millions of dollars City Hall is holding back if voters reject a sweeping property tax overhaul in November.
Castor’s administration is using the fiscal year 2027 budget to prepare for Amendment 3, a proposed constitutional amendment headed to Florida voters in November that could cost Tampa tens of millions of dollars a year in property tax revenue.
Rather than make deep cuts before voters decide, the administration is leaving some money uncommitted and deferring projects to give City Hall more room to absorb a future revenue loss. Several Council members, however, objected to adopting a budget that could leave the Mayor’s Office with substantial control over whether those projects and dollars return if the amendment fails.
Council Member Lynn Hurtak argued Council should not rely on what she described as a “handshake agreement” that the administration would restore deferred spending later.
“We cannot pass this budget and have a handshake agreement that if Proposition 3 doesn’t pass that the Mayor will add the deferred list back to the budget,” Hurtak said. “We have all been there before. We should pass the budget that responsibly spends the funds we are expected to receive.”
Her concern gained weight when city attorneys explained that Council cannot independently initiate a midyear budget amendment. Under Tampa’s charter, those changes must come to Council on the recommendation of the Mayor — meaning Council members could not simply restore deferred projects on their own after the budget is adopted.
Council Member Naya Young pressed staff on what would guarantee deferred projects return if Amendment 3 fails. Staff offered no guarantee, saying restoring the spending would require further discussion with the administration.
Hurtak, noting that the answers were vague, was more explicit later in the discussion.
“We have learned that handshake approvals don’t hold water,” she said.
Council ultimately backed Hurtak’s push to take another look at the money being held back before the budget is finalized.
Under her motion, city budget staff will meet with Council members before the Sept. 22 final budget hearing to review spending the administration has proposed delaying. The goal is to determine which projects Council wants funded in fiscal year 2027 rather than simply leaving those decisions for later.
Hurtak argued Council has a responsibility to budget for projects the city can afford now, then revisit those commitments if Amendment 3 passes and the projected revenue loss becomes reality.
Council approved unanimously, giving members the next two weeks to work through the administration’s deferral lists with Finance staff. Staff is expected to return at the final hearing with a proposal based on those discussions.
The debate exposed the tension at the heart of Castor’s budget strategy. The administration is trying to build financial breathing room before any property tax losses arrive, while Council members are reluctant to leave projects unfunded today when Amendment 3 would not begin affecting Tampa’s revenue until fiscal year 2028.
Finance officials defended the caution as an effort to build liquidity ahead of a possible downturn, pointing to reserves Tampa relied on to maintain services during the Great Recession.
Including interfund transfers, reserves and internal charges, the gross budget totals about $2.47 billion, down from roughly $2.53 billion this year. But the net budget is actually growing, from roughly $1.99 billion in the current year to about $2.04 billion next year.
Spending on Tampa’s day-to-day government is also increasing. General Fund spending is set to rise from roughly $708 million to $731 million, with much of that growth coming from higher personnel costs even as the administration proposes adding no new positions.
To preserve that flexibility, the administration is holding more money in General Fund reserves, limiting most increases to inflationary costs and trimming parts of the five-year capital plan rather than committing money it may struggle to sustain if Amendment 3 passes.
For now, Tampa continues to benefit from growth in its property tax base. Council is considering a property tax rate of 6.2076 mills, which is expected to generate nearly $397 million. The rate is unchanged from the current year but sits 2.3% above the state-calculated rolled-back rate.
The potential hit would not begin during the budget year Council is approving now. Tampa estimates Amendment 3 could reduce city property tax revenue by about $35 million to $40 million in fiscal year 2028, with the annual loss growing to roughly $60 million to $65 million in fiscal year 2029.
Those losses would arrive after Castor leaves office, leaving the next Mayor and City Council to absorb the first major revenue hit as they craft Tampa’s fiscal year 2028 budget.
The scale of the potential loss extends well beyond a handful of discretionary programs. Finance officials noted Tuesday that Tampa’s projected property tax collections of nearly $397 million would not even cover the combined cost of the Police and Fire departments.
Castor has also warned that property taxes support parks, tree maintenance, youth programs, litter removal, homelessness initiatives and other neighborhood services that could be competing for fewer dollars if voters approve the amendment.
The budget still requires final approval. Council is scheduled to return for its second and final budget hearing Sept. 22, before the new fiscal year begins Oct. 1.
Email: [email protected] Twitter: @PeterSchorschFL Phone: (727) 642-3162 Address: 204 37th Avenue North #182 St. Petersburg, Florida 33704