Florida voters face $323 million cut to local health systems
Amendment 3 would reduce property tax revenue for hospital districts, leaving roughly 10,000 fewer residents in Indian River County with access to affordable care.
By Megan Greco ·
Frank Isele, executive director of the Indian River County Hospital District, predicts that 10,000 fewer people will receive medical services if Florida voters approve Amendment 3 on November 3. The district currently uses property taxes to cover 230,000 medical visits, counseling sessions, and prenatal checkups for approximately 27,000 residents. Isele stated that the district stands to lose about one-third of its tax revenue if the measure passes.
The Florida Policy Institute estimates that public hospital districts and health systems across the state will lose $323 million in the amendment’s first few years. The proposed change would raise the homestead exemption for non-school property taxes from $50,000 to $150,000 in 2027 and $250,000 in 2028. It would also lower the annual cap on assessment increases for non-primary residences from 10% to 5%.
State economists project that local property tax revenue will drop by $4.9 billion in the first year, a figure that will grow to $11.8 billion by 2031. Governor Ron DeSantis, who convened the special session to place the measure on the ballot, has described local government warnings as fear-mongering. Supporters argue that the tax savings will help homeowners manage rising costs for insurance, groceries, and utilities.
Health care funding is not explicitly protected under the amendment. The measure limits property tax spending to public safety, schools, and roads, but it is silent on health systems. Erica Monet Li, a health policy analyst at the Florida Policy Institute, noted that the cuts will likely hit working adults who fall into the coverage gap between Medicaid and private insurance. In 2024, approximately 572,000 low-income working-age Floridians had no health insurance.
The impact will vary by county because Florida’s health safety net is fragmented. Eleven hospital districts collect property taxes that make up the bulk of their budgets. Four districts, including Indian River, derive 95% or more of their revenue from these taxes. The Indian River County Hospital District could lose $8.9 million over the next three years. By comparison, North Broward, which has a larger hospital system, would lose $100 million, but property taxes account for only 12% of its total revenue.
Heather Miranda, CEO of Treasure Coast Community Health, said her organization receives 14% of its funding from the Indian River Hospital District. The financial impact will not reach her clinics until October 2027. Miranda said the health center has limited options for budget cuts and may see waitlists grow or programs close. She warned that without care, patients’ health will deteriorate, leading to emergency room visits.
Rakeem Ford, board chair of the West Volusia Hospital Authority, said his board will likely target its largest expenses, such as $4.5 million annually for dialysis and cancer treatment. Ford stated that balancing the budget requires either raising taxes or removing services. Forty-one counties in Florida have neither a hospital district nor a health care sales tax, meaning the uninsured there must rely on shrinking general county budgets.
The amendment would also affect new residents, who would have to wait five years to receive the full property tax exemption. Seven counties currently use a local sales tax to fund indigent care, a revenue source the amendment does not touch. However, many of these counties are already at the state cap for such taxes.
Source: WLRN
