Hillsborough County officials outline fiscal 2026 priorities, flag pressure on unincorporated-area fund

Hillsborough County officials offered an initial overview of the fiscal year 2026 budget framework at an April 23, 2025, budget workshop, saying countywide finances remain strong but the unincorporated-area general fund faces continued pressure from growth-driven public safety needs.

County Administrator Bonnie Wise opened the workshop by noting the process timeline and public hearing schedule and reminding the board that no votes would be taken at the workshop. Kevin Birkey, director of Management and Budget, told commissioners the county has maintained AAA credit ratings and “strong reserves,” then reviewed the county’s adopted FY 2025 budget as context for FY 2026 planning.

The presentation showed the county’s FY 2025 total budget at about $10.331 billion and an operating budget near $3.97 billion. Birkey told the board the two operating general funds — the countywide general fund and the unincorporated-area general fund — are where the board has the most discretion; together those two funds rely heavily on property tax revenue. “A third of [current revenues], a little over a third of that, 36% is from ad valorem property taxes,” Birkey said. He reported countywide taxable value growth of about 6.8% this year and a conservative FY 2026 estimate of about 6.3%.

Birkey and Wise emphasized that public safety is the largest operating cost. The presentation showed the Sheriff’s Office and Fire Rescue as the largest line items funded from general funds; staff summarized figures discussed in the workshop as sheriff roughly $632 million and Fire Rescue roughly $281 million (both numbers discussed during the workshop). In the unincorporated-area general fund — the county’s fund for services where cities usually provide them — public safety accounted for about 68% of that fund, with the unincorporated operating millage at 4.4745 mills (about $13.42 on an assessed value of $350,000). The countywide operating millage was reported at 5.6026 mills (about $16.80 on an assessed value of $350,000).

Staff reiterated policy targets and constraints that will frame budget choices: a general fund reserve policy of 20%–25% (reserves were reported at about 23.8% in FY 2025), the state-prescribed truth-in-millage (TRIM) process for establishing millage rates, use of restricted funds first (for example, fuel taxes for transportation), and the goal of a structurally balanced budget. Birkey also reviewed the county’s capital improvement program (about $2 billion in FY 2025) and noted major capital sectors: water enterprise and transportation. He said the county projects more than $3.1 billion in new capital funding over six years from sources including the Community Investment Tax (CIT) beginning December 1, 2026, transportation surtax returns, bond proceeds, and a CDBG disaster recovery allocation discussed later in the meeting.

Commissioners pressed staff on specifics they said residents raise frequently. Commissioner Whitstell asked whether staff had a recommended percentage for the annual road maintenance and repaving program; Birkey said the FY 2025 budget included $69 million for repaving and that department requests for FY 2026 were still being evaluated. Commissioner Whitstell also asked whether that $69 million was rollover; staff said some of it would likely roll into FY 2026. Several commissioners expressed concern about backlog and the annual repaving need (Birkey said a full repaving program at the county’s pavement index would cost on the order of $95–100 million annually).

Other fiscal items discussed: the county’s workforce count (about 6,200 total positions in FY 2025), ongoing implementation costs tied to new fire stations and emergency units added since February, and an ongoing IAFF contract the board previously approved (staff noted the fiscal impact will be included in FY 2026 planning). Commissioners also discussed the indigent health care surtax: staff reported reserves around $400 million and that annual surtax receipts had slowed; the board previously directed about $15.7 million to the Sheriff and $5.0 million to Fire Rescue from that surtax in FY 2025.

On schedule, Birkey reviewed the budget calendar the board will follow: a second budget workshop May 28 (draft topics: nonprofit policy and solid waste), county administrator’s recommended budget delivered July 16, a budget reconciliation public hearing to set millage rates (the TRIM/“budget reconciliation” hearing) on July 30, and two public hearings in September (tentative and final budget adoptions on Sept. 4 and Sept. 18).

Commissioners asked for follow-up information on multiple items, and some members requested an additional workshop or briefing after the Florida legislative session to prepare for possible statewide changes that could reduce or shift local revenues. Staff said they would provide updated transportation and reserve slides at the July budget delivery and could schedule supplementary workshops if the board requests them. The meeting was a policy- and planning-focused session; no board votes or formal budget approvals were taken at this workshop.