Miami Beach faces a multimillion-dollar fine following a controversial decision regarding aid for homeless individuals

Miami Beach is facing a fine for canceling a referendum to fund shelters. The city is proposing a lodging tax to cover half of the costs.

Miami Beach / Trabajador social © Redes Sociales City of Miami Beach
Miami Beach / Social WorkerPhoto © Social Media City of Miami Beach

The City of Miami Beach will have to pay a fine of 10 million dollars to Miami-Dade County due to the removal of a referendum aimed at funding shelters for the homeless.

The financing proposal will be put to a vote next week by the County Board of Commissioners, according to Univisión Noticias.

The referendum, which never made it to the ballot, proposed a 1% tax on businesses that serve alcohol, with the revenue allocated to funding services for homeless individuals.

However, the Miami Beach City Commission decided to cancel it after determining that it placed an undue burden on small businesses. This controversial decision has had legal repercussions.

Local 10 reported that after a special meeting held on Thursday, the commissioners of Miami Beach approved a proposal to provide 5 million dollars in partial funding. This amount represents half of the 10 million that Miami-Dade had initially requested to address this social issue.

The proposal includes extracting 4 million dollars from the Miami Beach redevelopment agency and raising the remainder through a 4% tax on accommodations at a future convention center.

"If we proceed with what Commissioner Magazine proposes, tourists will be the ones paying taxes to fund services for the homeless," explained David Suárez, Commissioner of Miami Beach.

This approach seeks to avoid taxing residents and shift the economic burden onto visitors.

The issue has generated significant controversy and tension among the leaders of Miami Beach and Miami-Dade County. Commissioner Tanya Bhatt defended the city's stance, arguing that the accusations of lacking support are "inaccurate."

“It is not true that we don’t care or that we don’t contribute. We are fulfilling our part responsibly,” Bhatt added during the session.

The county still needs to decide whether to accept this settlement offer from Miami Beach. While the city has pledged $5 million annually, the lack of an agreement leaves the management of this challenge uncertain for the future.

The decision could set a precedent in the management of funds allocated for homeless individuals, highlighting the need for sustainable and agreed-upon solutions.

Since October, Law HB 1365 has been in effect as part of Governor Ron DeSantis's "law and order" agenda. It was signed in March 2024 at an event in Miami Beach.

According to the governor, this legislation aims not only to maintain security in public spaces but also to address the issue of homelessness in a humanitarian way, facilitating their social reintegration.

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