Finance & Tax: Unfunded Mandates
The Florida Association of Counties supports changes/amendments to the State Constitution that provide meaningful enhancements to the existing unfunded mandates provision including, but not limited to:
- eliminates exemptions from unfunded mandates;
- provides greater public notice, legislative scrutiny and fiscal information;
- enhances accountability and transparency;
- preserves self-determination and local fiscal stewardship;
- provides a process to resolve conflicts and disputes; and
- requires legislative support through the development of implementing legislation.
In 1990, the Florida Constitution was amended to add provisions governing the passage of laws that affect the revenues and expenditures of local governments. This section of the constitution provides general guidance on the legal interpretation of a mandate. State mandates are defined in Article VII, section 18 of the Florida Constitution as laws requiring counties or municipalities to spend funds or to take an action requiring the expenditure of funds, laws reducing the authority to raise revenue, or laws reducing the percentage of a state tax shared with counties and municipalities.
While the constitution denotes that no county or municipality shall be bound by any general law which requires them to spend funds or take actions requiring the expenditure of funds unless certain conditions are met, there are several EXCEPTIONS provided in Article VII, section 18 of the Florida Constitution. These exceptions, if met, provide that local governments must comply with a provision requiring expenditures. An EXCEPTION occurs when the Legislature has determined that the law fulfills an important state interest and one of the following situations is present:
- funds to offset the costs of implementing the law have been appropriated;
- the law was approved by a two-thirds membership vote of each house;
- the Legislature finds that the expenditure is required to comply with a law that applies to all persons similarly situated;
- the Legislature authorizes or has authorized a county or city to enact a funding source not available on 2/1/89; or
- the expenditure is required to comply with a federal requirement or entitlement which contemplates action by cities or counties.
Similarly, but distinct from EXCEPTIONS, EXEMPTIONS from the requirements of the constitution, include laws adopted to require funding of pension benefits existing on the effective date of this section, criminal laws, election laws, the general appropriations act, special appropriations act, laws reauthorizing but not expanding then-existing statutory authority, laws having insignificant fiscal impact, and laws creating, modifying, or repealing noncriminal infractions.
Consequently, the Legislature may enact mandates as long as certain conditions are met. The constitutional language does not provide detail on identifying mandates or on how terms such as insignificant fiscal impact are to be determined.