Hialeah prepares workforce adjustment options as tax-reform revenue falls
The proposals include salary cuts of up to 20% for nonunion employees. City Hall confirmed the discussions but said no measure has received final approval.
Hialeah's government is studying adjustments to its workforce and municipal salaries because of the lower revenue projected under Florida's Amendment 3. In addition to reducing pay, it is considering a hiring freeze and eliminating positions. After the reform passed, the administration called an emergency meeting of department heads to review the budget. A spokesperson for Mayor Bryan Calvo confirmed the discussions and said no final decision has yet been made.
The salary proposal calls for an initial 10% reduction followed by a 20% cut in the second year for employees without union representation. Those potentially affected include municipal department heads and civilian employees assigned to the Police and Fire departments. Unionized employees and the Building and Public Works departments, which are considered self-sustaining within the municipal structure, would be excluded.
The discussions come while the city maintains collective bargaining agreements providing pay increases for other groups of workers. Agreements signed for police officers establish a 30% raise spread over three years; firefighters are due a 17% increase over two years. Employees represented by the AFSCME union federation have an agreed 2% raise for the one-year term of their contract.
The municipal Finance Department estimates that the city could lose as much as $17 million in revenue during fiscal year 2028. Its projection for 2029 raises that figure to $28 million. Both estimates reflect the effect of the new residential exemptions on municipal property-tax revenue, the reason workforce adjustments are being discussed as part of the local budget.
About 62% of voters supported Amendment 3 in the November 3, 2026 election. With its approval, the homestead benefit for primary residences will increase in two stages. The exemption, currently close to $50,000, will rise to $150,000 in January 2027. One year later, in January 2028, it will reach $250,000 under the implementation schedule for the state reform approved at the polls.
Municipal figures show the scale of the exemption in Hialeah: of approximately 61,000 residential properties, about 32,000 receive the homestead benefit. Among homes covered by the program, 9% already pay no municipal property tax. That is the local starting point for the expansion approved by Florida voters in November 2026, which will take effect in two consecutive annual phases.