Alright so I just tried this. At the very back of the mower under the engine a pulley is constantly spinning whether the blade is engaged or not. The belt isn't moving when the blade is not engaged, but the pulley is spinning. When I engage the blade, the belt does not begin to move, there is no engine slow down / click (this normally would happen when the blade is working properly) and none of the pulley's on the deck spin at all.
I can take a video / pics if that will help, thanks for all the advice so far.
Based on what I said above does it sound like the clutch is bad and the belt is fine (even though the belt is not snug like it use to be)?