Presentation Transcript

1. FGFOA 2013 Legislative Update

   Amber Hughes Florida League of Cities June 25, 2013
2. Overview Review of 2013 FGFOA Priorities Additional 2013 Legislative Highlights SFY 2014 Budget 2014 Preparation and Outlook Additional Resources and Information
3. Review of 2013 FGFOA Priorities Pension Reform Property Tax Reform Communication Services Tax Local Business Tax September 30 Fiscal Year-End for Clerk of Circuit Court Remittances to State and County Streamline Clerk of Circuit Court Funding/Budgeting Process Sales Tax on Internet Transaction Bed Tax on Internet Sales of Lodging Allowing Price in the Consultants Competitive Negotiation Act Public Personnel Records
4. Local Government Pensions CS/CS/CS/SB 534 (Brandes) Creates reporting standards for publicly funded defined benefit retirement plans. State is not responsible for shortfalls in local gov’t retirement systems/plans. Requires each defined benefit plan to submit report to FL DMS. Report must include financial statements using: plan’s assumed rate of return and rate of return 200 basis points lower than assumed rate of return Implementation was extended to June 30, 2014.
5. Local Government PensionsCS/CS/SB 458 (Ring)CS/HB 1399 (Rooney) Not Pension Reform—did not allow cities to negotiate benefit levels below 1999. Would have repealed “Naples Letter” language and thus sunset existing agreements relying on Naples letter.
6. State PensionSB 1810 (Govt. Oversight & Accountability) Sets the employer-paid contribution rates for the FRS and the Retiree Health Insurance Subsidy program. The employer-paid contribution for the HIS program is increased from 1.11% of the employer’s payroll to 1.20% of the employer’s payroll. These funds will be deposited into the Retiree HIS Trust Fund to pay benefits to participating retirees. These provisions take effect July 1, 2013.
7. FRS Contribution Rates (SB 1810): Modifies employer contribution rates. Employer normal contribution rates for each membership class of FRS (Defined Benefit and Defined Investment) are amended as follows: SFY 2014 FRS Rates
8. SFY 2014 FRS Rates To address unfunded actuarial liabilities (UAL) of the system, the bill amends the current 2013 employer contribution rates for each membership class of FRS as follows:
9. FRS Reform CS/CS/SB 1392 (Simpson)CS/CS/HB 7001 (Gov. Ops. Subcommittee) Senate Proposal: Would have changed default for members who do not affirmatively choose a plan from DB to DC. Would have changed vesting from 8 to 10 years. Would have mandated Elected and SMS class join DC Plans. Would have lowered DC plan contribution rates from 3 to 2%. House Plan: Would have closed DB plan to new members as of Jan. 1, 2014. Would have provided additional death benefit for special rick. Would have expanded investment options.
10. Communications Services Tax House Finance and Taxation committee considered concepts to broaden the tax base replace the local CST with state CST. No legislation was filed with these specific concepts.
11. Communications Services TaxHB 303 (Grant)/SB 1422 (Richter) Would have repealed local CST and revised state CST rate to be 10.65% Would give 45% of the state CST to the local governments- but no distribution formula. Would have required local gov’t. to reduce ad valorem rate to offset increased CST revenues.
12. Local Business TaxHB 7109 (F&T Subcommittee) Would have created three LBT classifications based upon sq. footage of the business. Established parameters for rate structure and required the city to adopt the rate structure by a 2/3 vote. Eliminated “overlap” between cities and counties.
13. Clerks of the CourtSB 1512 (Appropriations) Reverses many of the changes made in SB 2108 during 2009 relating to the budgets of the clerks of court. Expands the role of the LBC by creating oversight and accountability in the clerks’ budget process.
14. Internet Sales TaxCS/SB 316 (Detert)HB 7097 (F&T Subcommittee) Would have created two new situations where out-of-state retailers that conduct business over the internet would be required to collect and remit Florida sales tax on sales made to Florida residents. Would have required the Revenue Estimating Conference to calculate the amount of additional sales tax that is remitted from out-of-state retailers.
15. Bed Tax on Internet Sales No Legislation filed dealing with the TDT and internet sales. Stakeholders are waiting on the Florida Supreme Court.
16. Allowing Price in CCNASB 1002 (Soto)/ HB 739 (Metz) Would have allowed agencies to use a best value selection process, which creates a two-stage procurement process, for architectural, engineering, landscape architectural, or surveying and mapping services.
17. Public Personnel Records No Legislation filed dealing with public records exemptions for all public employees. CS/HB 731 (Kerner) creates a public records exemption for the names of spouses and children of state attorneys and law enforcement personnel.
18. Additional Legislative Highlights that Passed Medicaid Reimbursement Ethics and Elections Economic Development Red Light Cameras Mortgage Foreclosures / Liens Natural Gas Motor Fuel Transparency
19. Additional Legislative Highlights that Failed Sovereign Immunity E911 Fee Campus Development Agreements Stormwater Fees Value Adjustment Boards Sales Tax Exemption on Commercial Leases
20. SFY 2014 Budget SB 1500 Approximately $74.1 billion, and represents a $4.9 billion increase from the previous state fiscal year. General Revenue: $26.7 Billion (approx.) Trust Fund Revenue: $47.5 Billion (approx.)
21. SFY 2014 Budget Biggest Winner = General Government - $4.4 B; up 16.54% Biggest Loser = Judicial Branch - $443 M; up0.28%
22. 2014 Outlook Communication Services Tax Local Business Tax Pension Reform Property Taxes E-911 Fees Stormwater Value Adjustment Boards Sales Tax Exemption on Commercial Leases
23. Additional Resources and Information Associations Florida Association of Counties (www.fl-counties.com) Florida League of Cities (www.flcities.com) Florida School Boards Association (www.fsba.com) State and Legislative My Florida (www.myflorida.com) Online Sunshine (www.leg.state.fl.us) Office of Economic & Demographic Research (http://edr.state.fl.us) News & Events Sayfie Review (www.sayfiereview.com) The News Service of Florida (http://www.newsserviceflorida.com) Florida Channel (http://wfsu.org/tfc)
24. Questions and Contact Information Amber M. Hughes Legislative Advocate Florida League of Cities AHughes@flcities.com 850.222.3806