The Escambia County Commission convened its Committee of the Whole on Wednesday morning to begin its public discussion of the fiscal year 2026-27 budget process, and the conversation revealed how precarious the county’s financial footing could become if property taxes on homesteads go away.
The $79 Million Question
Finance Director Stephan Hall opened with a stark warning. If the Florida Legislature follows through on its Homestead Property Tax Reduction Proposal, the county general fund could take a hit of roughly $79 million, with the library system absorbing another $4 million in losses.
- Background: The adopted FY 2026-27 general fund budget stands at $348.5 million.
Hall urged patience. “Staff is requesting that the board not make a decision on funding received from property taxes until the state’s 2026 special legislative session has ended and the financial impact to the county can be quantified.”
- Commissioner Mike Kohler pointed out the scale of the problem. “This would be like 12 to 14 rollbacks in one year. What plan are you putting together if the legislature does this whammy on us?”
Hall acknowledged contingency plans are being hashed out, but conceded the options aren’t good—a combination of millage rate increases for commercial and other properties that are homesteads, an elimination of vacancy positions and cuts in county services.
- “I can assure the board it will not be easy. It will not be pleasant,” Hall said.
Watching the Senate
County Attorney Alison Rogers offered a legislative temperature check, noting that the most recent signals from Tallahassee suggest the two chambers may not reach agreement on a full property tax cut. Instead, she said, the conversation has shifted toward restricting how local governments can use property tax revenues.
- “The only talk that I’m hearing is that there’s some expectation that there is not going to be a meeting of the minds on exactly how to cope with a reduction in the property taxes,” Rogers said.
Commissioner Lumon May said commissioners need to be physically present in Tallahassee to make their case.
- “I think it’s probably going to behoove us to make sure that when the session is resumed, that we’re joining FAC (Florida Association of Counties) and many of the commissioners from across the state and at least talking to our delegation,” May said. “If they would pass any one of the eight versions that they have at the House, it would devastate us.”
Constitutionals in the Crosshairs
Kohler went on record that any draconian cuts wouldn’t be limited to the BCC’s own operations. Constitutional officers—Sheriff, Clerk, Tax Collector, Property Appraiser—would need to share the pain.
- “The cuts won’t just be for the county. They’ll be for all the constitutionals, too. There’s no way that I’m going to cut the county and not cut the constitutionals if we get into that situation,” Kohler said.
Barry offered a more measured view. “I don’t think we’re going to get a plan back from the property appraiser of how to deal with anything right now, just because the legislation would be specifically targeting them as much as anything.”
Barry also noted the county has a multi-year funding agreement with Sheriff Chip Simmons, but said extraordinary circumstances would require an extraordinary conversation.
- “When things like this would happen, no one would’ve anticipated that at the onset of a funding agreement,” Barry said. “I think it would take a conversation and a partnership, even with him.”
A Leaner Operation—For Now
Hall presented data stretching back to FY 2007-08 showing the county has shed a net 26 administrative positions over nearly two decades while adding 259 positions in public safety—EMS, emergency management, 911, fire and corrections.
Barry praised the trend as evidence of disciplined management at every level of county government.
- “What you see in government, so often as revenue increases, you just see government grow,” Barry said. “I think the services that the county has provided over these 15 years—the services have grown tremendously, but the personnel have not.”
Grants
Board Chair Ashlee Hofberger pressed county staff on everything from grant administration to electric vehicles as she sought potential budget cuts.
She asked whether the county is actually recovering its administrative costs when it brings in and manages grant funding.
- “When we bring in those grants, and then we administer those grants, are we recouping some of our labor and payroll costs associated with that through the grant program, or does that depend on the grant”” she asked Finance Director Stephan Hall.
Hall confirmed the county generally recoups those costs, with most grants allowing either overhead cost allocations or direct administrative staffing expenses—though the terms vary by grant.
Health Care
Hofberger also pushed on the general fund dollars flowing to outside agencies, asking whether there’s room to tighten parameters or reduce those allocations.
- Hall noted that the two largest community partners—Lakeview Center and Community Health—receive roughly $800,000 combined and leverage that funding to draw down additional state and ACA health dollars for Escambia County residents.
Hofberger asked whether those relationships are driven by statute or by voluntary board decisions, and whether the county has formal contracts that hold those agencies accountable for results.
Hall said the funding is voluntary and not statutory, though he noted that the county has a quasi-mandate tied to Lakeview due to its Baker Act responsibilities. He confirmed that both organizations report back on outcomes through the county’s quarterly metrics process.
Electric Vehicles
Hofberger raised a longer-term infrastructure funding concern: as vehicles become more fuel-efficient and electric vehicles proliferate, gas tax revenue that funds road infrastructure and ECAD is eroding.
- “Is there any ideas that maybe we should talk to our lobbyist about as far as recouping something from those electrical vehicles?” she asked.
Commissioner Mike Kohler responded that the Florida Association of Counties is already circulating a proposal to the legislature for a surcharge on electric vehicles to address exactly that gap. Hofberger asked Rogers to track the issue and keep the board updated.
Lowest-Paid Workers and the 2% Raise
Hall also asked the board for direction on including a 2% pay increase for all employees in the upcoming budget—a total cost of roughly $2.5 million countywide, with about $1.4 million coming from the general fund.
The board signaled support, but May used the moment to raise a persistent concern about wage equity.
- “We got people making six figures, and we want to give 2%, and we got people that can barely pay the rent that are making $14, $15 an hour,” May said. “I’d like to look at people at the bottom getting a higher percentage than those at the top.”
Hall noted that Florida’s voter-approved $15 minimum wage kicks in for county employees at the end of September.
Looking Ahead
Hall told the board the full picture on property taxes and the FY 2026-27 budget will come into focus at the July 23rd Budget Workshop—assuming the legislature has acted by then. Until that session concludes, the county is essentially planning in the dark on its single largest revenue source.
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