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r The fiscal health of most counties in Florida is not good and is likely to worsen, even without the new responsibility for more state roads. The average county -wide operating millage is now 8.0. Eleven counties are at the constitutional cap of 10 mills. Forty-three counties (representing 85-90% of the state's population) have enacted all six cents of the Local Option Gas* Tax. Furthermore, the current popularity of discussing infrastructure (capital) needs ignores the growing problem of operation and maintenance costs once the new facilities are constructed. The new policy will cause one of three actions to be taken by county commissions: First, if capacity exists, the property tax could be raised. Secondly, the county could challenge DCA in the courts for the right to adopt a lower level of service on state roads. Finally, the county could impose a moratorium on new construction. The new policy is particularly troublesome to county governments since it comes—at a ti e when the DOT has recently announced an additional($700 million shortfall in its own five- year capital budget and aTirGo'vef or continues to refuse to discuss an new t xes - whether ey a enacted athe sta€e or~ "the loca level. Transferring roads helps to relieve responsibility at the state level but does knot solve our transportation funding problem - at the state or local level. While the Association believes the new policy (absent authorizing legislation) will be challenged in court, it is critical that we move immediately to convince the Governor and Legislature of the need for additional local sources of revenue to meet the basic requirements of the Growth Management Act. This must be done for two reasons: First, the needs are real and the Act =cannot be implemented without new revenues. Secondly, if no new revenues are authorized during this Session, it is inevitable that property taxes will increase, service levels will decline, or moratoria will result next year. The groundwork needs to be put into place now so that the real reasons for these problems can be explained to the public during our FY 1989-90 budget process. The enclosed letter was sent to all members of the Florida Legislature earlier this week. It is imperative that each of you contact the members of your delegation and the Governor's Office in support of an additional five cents of local option gas tax and amending the local option sales tax so that the referendum is an optional method of enactment. Phone calls, individual letters and resolutions of the Board are all needed now so that the groundwork can be laid for the 1989 Session. Resolutions are especially helpful since they are enacted at public meetings where media coverage is present. Please provide the Association offices with copies of any correspondence or resolutions that you send. Should you have any questions, feel free to contact me. Chairman Wheeler felt the proposed action is almost irresponsible on the Governor's part. Instead of biting the bullet and taking care of the road system, they want to dump it back on the counties, and on the other hand, they don't provide us a way to raise the revenue. Besides having a Resolution prepared, Chairman Wheeler suggested that each Commissioner write 59 FEB 21 `6.6--j pOC� `1 0 f V„ �1 .