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The statewide passage last week of Amendment 3, a ballot measure to reduce property taxes, has left Lakeland arts organizations wondering how much public funding the city can sustain as revenue shrinks.
“Everything’s on the table right now,” Commissioner Terry Coney said Thursday, Nov. 5, at a Mayor’s Council on the Arts meeting, where several local arts leaders expressed concerns about potential cuts to city support.
Coney singled out Lakeland’s arts-grant program, whose budget has grown from $250,000 to $375,000 over four years. “Do we leave it at that?” he asked.
The city has not approved any budget changes in response to Amendment 3. Any changes resulting from a reduction in revenue will go into effect on Oct. 1, 2027, according to a post-election statement from the city, which also emphasized maintaining public services and protecting Lakeland’s quality of life.
Lakeland Community Theatre warned in a Nov. 4 Facebook post that community arts programs “may face new challenges,” but added, “We are not giving up.” The nonprofit performs at the city-maintained Lake Mirror Center.
Revenue losses, but time to adjust
Amendment 3 passed Nov. 3 with 62% of the statewide vote. It increases the homestead exemption for nonschool property taxes to $150,000 in 2027 and $250,000 in 2028, while lowering the annual assessment-growth cap for nonhomestead properties from 10% to 5%.
Lakeland officials projected annual property-tax revenue losses of $9.5 million in fiscal year 2028 (FY28), rising to $12.5 million the following year. Those are estimates, not approved reductions to city services.
Coney said Lakeland is better positioned than some cities because of its comparatively low property-tax rate and revenue from city-owned utilities, including Lakeland Electric. Still, he observed, “What you think of as a tax cut may be a tax shift.”
Mayor Sara Roberts McCarley raised concerns in August that publicly supported cultural amenities, including Lakeland Community Theatre’s venue, could face reductions if Amendment 3 passed.
City Communications Director Larry Little told LkldNow that more information on FY28 budget adjustments should be available by June 2027, as officials explore alternative funding sources.
Gov. Ron DeSantis has announced plans for a special legislative session before January to set a schedule for further homestead-tax reductions and restrict local governments from replacing lost property-tax revenue through other taxes and fees. Those decisions could affect Lakeland’s options.
Arts leaders weigh the stakes
Under the city’s arts-grant program, qualifying nonprofits can apply for up to 10% of their previous year’s operating expenses, capped at $75,000 each.
In a September presentation to commissioners, Kerry Falwell, chair of the Mayor’s Council on the Arts, reported awarding $363,000 to 10 nonprofits. Using an Americans for the Arts calculator, she estimated $9.9 million in economic activity associated with those organizations’ spending.
“Is it going to be lean years? Absolutely,” Falwell, CEO of Florida Children’s Museum, said Thursday, regarding Amendment 3’s impact. “Are we going to bounce back? We are smart, dedicated, resourceful people.”
Cynthia Haffey, director of Platform Art, warned that reducing city grants could jeopardize other funding for local arts nonprofits.
State and national grantmakers often seek evidence of municipal support before awarding money, she noted. “They want to see that the city is actually supporting you,” Haffey said.
She emphasized the broader public benefit of cultural investment. “Public art is free and for all people,” she said.
What might change?
In a July 23 budget workshop, City Manager Shawn Sherrouse described an exercise modeling 10% spending reductions across departments.
Possible budget cuts included halving city-backed summer camps from six to three, reducing capacity from 265 children to 120; eliminating about $500,000 in city-supported event costs; and cutting seasonal flower beds in half.
“It is a change in the culture and character of our great community,” Sherrouse said of those scenarios, which were not adopted cuts.
Commissioner Stephanie Madden previously raised ending arts contributions and selling some city properties as options. Coney, interviewed Thursday, said commissioners must weigh whether expenditures are “a must-have, or is it a like-to-have thing.”
On Sunday, local realtor Abraham Vatakencherry appealed to businesses and residents to support Lakeland Community Theatre through sponsorships, donations, and partnerships.
“Property tax relief and a strong cultural community do not have to be competing goals,” he wrote in the Facebook group “We Live in Lakeland & I Have Questions.”
Arts and quality of life
Polk County Sheriff Grady Judd, who opposed Amendment 3, accepted voters’ decision Wednesday. “Cities, counties, you need to re-engineer the delivery of local services and save tax money,” he said.
Judd pledged to protect public safety but said his agency would freeze future hiring while evaluating its finances.
Beyond restricting replacement taxes and fees, DeSantis wants state lawmakers to consider grants to help local governments maintain essential services. A date for the special session has not been set.
Daryl Ward, executive director of the Ashley Gibson Barnett Museum of Art, worries lawmakers might also loosen restrictions on Polk County tourist-development taxes, allowing money now supporting cultural programs to be redirected toward other services.
“I have no idea if that’s going to happen, but that’s more my concern,” Ward told LkldNow. A tourist-tax redirection proposal passed the Florida House in 2025 but died in the Senate.
Ward said Polk tourism grants have supported museum exhibitions and Mayfaire-by-the-Lake, adding that smaller arts organizations may be less able to absorb funding losses.
“It’s about what kind of quality of life does a community want,” Ward said, “and how are we willing to support that?”
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