St. Johns County had already put roughly $100 million in capital improvement projects on hold pending the outcome of the Property Tax Amendment 3 vote, including a planned fire station in the Beachwalk area. After voters approved the amendment, officials began reworking the county budget. County leaders say an indefinite hiring freeze is also in effect as they brace for what could be tens of millions of dollars in lost annual revenue in the years ahead.
Florida voters approved Amendment 3 this week, a property tax reform measure that will cut ad valorem tax revenue for local governments statewide, according to News4JAX. The measure won about 62 percent of the statewide vote, two points more than the 60 percent threshold it needed to pass, WUSF reported. For St. Johns County, the numbers add up to a significant fiscal reckoning: county estimates say the county will lose 15 percent of its ad valorem tax revenue in year one, 30 percent in year two, and about 45 percent by year five.
County officials say they saw this coming. Per Clay Murphy, chair of the St. Johns County Board of County Commissioners, the county began planning for the budget impacts back in spring 2026, and St. Johns County confirmed it has been preparing since May for the potential fiscal fallout. County staff launched a countywide review of services, staffing, contracts and capital projects that same month, led by County Administrator Joy Andrews.
A $100 Million Pause, Fire Station Included
The review's most visible result so far is the freeze on capital spending. The county has placed approximately $100 million in capital improvement projects on hold pending the election outcome, per the same county statement. Among the paused projects: a planned new fire station in the Beachwalk area and the firefighters who would staff it, according to the St. Johns Citizen.
The county is also reconsidering a previously approved $120 million bond that an earlier board had greenlit for parks, fire stations and libraries. Beyond capital projects, the county has identified roughly $8.6 million in position and vacant-position funding for reassessment, and the county's hiring freeze will remain indefinitely, officials said.
How Deep Could the Cuts Go?
County projections, based on Florida Office of Economic and Demographic Research estimates, point to a potential $68.3 million property tax revenue reduction in fiscal year 2028, followed by $136.1 million in FY 2029, the county's report on preparations for Amendment 3 indicates. Annual revenue reductions could climb to $191.6 million by FY 2032 if the amendment's effects play out as projected, the county said ahead of its September town hall.
A Florida legislative analysis cited by the St. Johns Citizen found that the projected second-year loss for St. Johns County would equal about 32 percent of the roughly $426 million in property taxes included in the county's proposed 2027 budget. Murphy offered a hypothetical to illustrate the scale of the challenge: eliminating parks and recreation, libraries, and health and human services entirely would save only about $50 million, nowhere near enough to close the gap on its own.
No Decisions Yet, County Says
Murphy said no formal budget decisions have been made, and that implementing the voter-mandated cuts will be painful. The county is reviewing non-mandated services including parks and recreation, libraries, and health and human services, while also evaluating alternative revenue sources. A public discussion is scheduled for a December 2026 county commission meeting.
To cushion the blow, the county's FY 2027 Recommended Budget includes $31.2 million in emergency-response reserves, with an additional $30 million in General Fund reserves designated for financial resiliency, per the county's own preparations report. The broader review covered 380 services across 18 departments and 1,137 existing fees, and county officials have repeatedly said they do not advocate for or against the amendment, framing the work as preparation for either outcome.
Other Florida Counties Feel the Squeeze Too
St. Johns County is far from alone in confronting the fallout. St. Lucie County Communications Director Erick Gill estimated his county would lose about $63 million in revenue in the first year and roughly $112 million by 2028, according to WUSF. Martin County Commissioner Blake Capps put his county's 2027 gap at about $42 million, or roughly 12 percent, growing to about $75 million, or 20 percent, by 2028 — a shortfall Martin County is weighing addressing through spending cuts, shifted tax burdens on non-homesteaded properties, new fees, or some combination of approaches.
An analysis from the Orlando Sentinel found 2028 losses statewide ranging from 4 percent of Eatonville's general fund to 32 percent of Lake County's general fund, with Orlando itself projected to lose about $60 million in homestead property-tax revenue, roughly 7.6 percent of its general revenues. Howey-in-the-Hills, a small town, is projected to lose $936,752 in 2028, equal to 22.5 percent of its roughly $4.2 million general fund. A Fortune analysis of the measure's statewide impact concluded that local governments will struggle to fund basic services with less money on hand, a dynamic now playing out in budget offices from the Treasure Coast to St. Johns County.
