Deegan warns of $300 million revenue shortfall after voters approve amendment 3 — Could Jacksonville face new taxes?

ERVIN SHKULAKU-JACKSONVILLE, Fla. — November 5, 2026 — Jacksonville Mayor Donna Deegan is warning of a major financial challenge following Florida voters’ approval of Amendment 3, raising a question for taxpayers: Will City Hall respond to property tax relief by introducing new taxes or fees?

The amendment, approved by approximately 62% of Florida voters on November 3, significantly expands the homestead exemption for primary residences, reducing property taxes for millions of homeowners.

But while residents celebrate the prospect of lower tax bills, Jacksonville officials are warning that the city could lose hundreds of millions of dollars in annual revenue.

Deegan Warns of a $300 Million Budget Gap

In an interview with Action News Jax, Deegan expressed disappointment that state lawmakers placed the amendment before voters without providing additional financial support for local governments.

The mayor warned that Jacksonville could face a budget shortfall approaching $300 million.

However, she also acknowledged that voters are struggling with rising living costs and understand why they supported property tax relief.

Rather than immediately implementing sweeping spending cuts, Deegan said her administration would work over the next six to eight months to prepare a balanced budget.

Will Jacksonville Introduce New Taxes or Fees?

That remains one of the biggest unanswered questions.

As of November 5, Deegan has not announced a formal proposal to introduce new taxes in response to Amendment 3.

However, local officials and analysts have discussed several possible ways to address the loss of revenue, including reducing spending, delaying infrastructure projects, increasing certain fees, or considering alternative revenue sources.

Some possibilities discussed in public debate include additional service fees and adjustments to local charges.

None of those possibilities should be interpreted as an approved tax increase or an announced Deegan administration policy.

City Council Members Demand Spending Cuts

Some Jacksonville City Council members argue that the city should focus on reducing spending before considering additional revenue.

Councilman Rory Diamond has called for significant budget reductions, including limiting government hiring and cutting certain administrative expenses.

Other council members have warned against rushing into cuts that could affect essential services, infrastructure improvements, libraries, and community programs.

The disagreement highlights a growing political divide over how Jacksonville should respond to the voters’ decision.

What Does Amendment 3 Mean for Homeowners?

Amendment 3 increases the homestead exemption for non-school property taxes from $50,000 to $150,000 in 2027 and $250,000 in 2028.

According to figures reported by News4JAX from Duval County Property Appraiser Joyce Morgan, a qualifying homeowner with a median-valued home of approximately $290,000 could save an estimated $1,632 in 2027 and $2,674 in 2028.

Those savings could provide meaningful relief to households struggling with insurance, groceries, utilities, and other rising expenses.

But the reduction in local government revenue has intensified the debate over which services should be prioritized.

The Bigger Question: Can Jacksonville Spend Less?

The election result creates a challenge for City Hall.

Supporters of Amendment 3 argue that local governments must become more disciplined in their spending rather than relying on continually increasing property tax collections.

Opponents warn that substantial revenue losses could affect police, fire protection, roads, drainage, and other public services.

For Jacksonville residents, the central issue is whether the city can preserve essential services while respecting voters’ demand for lower taxes.

Will City Hall find meaningful spending reductions, or will taxpayers eventually face new fees and other charges?

For now, no new tax proposal has been confirmed. The answer will become clearer as Deegan and the City Council negotiate Jacksonville’s next budget.