After Florida approved the controversial Amendment 3, Hialeah called an emergency meeting with the directors of all its departments to discuss how to address the financial blow that the tax reform will bring.
According to sources familiar with the discussions, cited by the Miami Herald, the city is considering salary cuts of 10% in the first year and 20% in the second for non-union employees, a freeze on new hires, and the elimination of positions.
The mayor's spokesperson Bryan Calvo was clear that nothing is decided: "Discussions are ongoing regarding the budget cuts, but a final decision has not yet been made."
The city’s Finance Department projections estimate losses of up to 17 million dollars in fiscal year 2028 and up to 28 million in 2029, as a direct consequence of the reduction in property tax revenue imposed by the amendment.
The Amendment 3 was approved on Tuesday with nearly 62% of the votes, surpassing the 60% threshold required to amend the state constitution.
The measure expands the homestead exemption for property taxes: from approximately $50,000 to $150,000 starting January 1, 2027, and to $250,000 starting January 1, 2028.
The impact in Hialeah will be particularly pronounced. Of the approximately 61,000 residential properties in the city, about 32,000 have homestead exemptions. Currently, only 9% of those homes do not pay municipal property tax. With the reform, that percentage would rise to 43% in 2027 and to nearly 71% in 2028, according to the municipal Department of Finance.
The measures under discussion would apply to all departments, with two exceptions: unionized employees and the Construction and Public Works units, which are considered self-sufficient. However, management positions and civilian staff in the Police and Fire departments could be affected.
This creates a clear tension with the labor agreements that Calvo's administration has just finalized. Under his management, Hialeah signed collective agreements that the mayor referred to as "historic": a 30% raise over three years for police officers, a 17% increase over two years for firefighters, and a 2% raise in one year for workers represented by the American Federation of State, County, and Municipal Employees.
The police chief, George Fuente, referred all questions regarding potential budget cuts to the mayor's office. The fire chief, Humfredo Pérez, was not available for comments.
Calvo had warned in October that Hialeah has less capacity than other municipalities to absorb the losses from Amendment 3, as a large portion of its budget—about 514 million dollars in total—funds essential services. He urged the state to create revenue sharing mechanisms or transitional assistance for the more vulnerable municipalities.
The governor Ron DeSantis announced a special legislative session before January of 2027 to implement reform and approve a "taxpayer bill of rights" that would prevent local governments from offsetting losses through new fees or charges, although he mentioned possible state assistance without specifying figures or distribution formulas.
At the state level, economists estimate that local governments in Florida will lose approximately $4.9 billion in the 2027-2028 fiscal year and about $8.7 billion in 2028-2029 as a result of the amendment.
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