Monroe County adopts amended FY2026 budget, holds millage steady after debate over $2 million reserve

Monroe County commissioners on Sept. 10 adopted a final fiscal year 2026 budget of $672,067,874 and approved a revised countywide millage that trimmed a proposed increase after discussion and a motion to maintain last year’s rate.

The action followed a presentation by John Quinn, assistant director of the Office of Management and Budget, and remarks from county staff and public speakers about nonprofit funding and potential federal disaster-aid changes. Commissioners voted to reduce the previously advertised county commission millage from 2.7327 to 2.6929 and to cut $2 million from the general fund to reflect that roll-back, dropping the total budget from $674,067,874 to $672,067,874.

Why it matters: County staff cited growing uncertainty about future disaster reimbursement from the Federal Emergency Management Agency and recommended boosting local emergency reserves. County officials said proposed FEMA policy shifts could raise state or local disaster shares, reduce reimbursable projects and limit mitigation grants — developments that would leave the county more exposed after storms.

Budget highlights and reserves John Quinn told the board the adopted budget balances at just over $674 million before the later $2 million downward adjustment and reflects an ad valorem property tax levy of roughly $170.8 million; about $1.6 million of that goes directly to the Florida Department of Health. The board-directed changes and other line-item cuts reduce the final total to $672,067,874.

County staff reported an estimated FY2026 ending general fund balance of about $49 million and said the county will hold roughly $14 million in emergency disaster reserves after the board’s direction. Quinn also said the budget includes reductions found during departmental roundtables, resulting in the elimination of 45.32 full-time-equivalent positions in aggregate.

FEMA and reserve rationale Lisa Tennyson, who presented the FEMA-related slide, told the commissioners the county had prepared for several potential federal changes "the general direction seems to be a desire for a smaller FEMA where we are shift where they are shifting the cost a greater share of the disaster costs to local, and state governments." She outlined concerns including a higher damage threshold for federal public assistance, a lower federal cost share for some events and the possible loss of reimbursements for noncritical infrastructure such as parks and boat ramps.

Those risks prompted discussion among commissioners about whether to raise the millage to immediately fund an additional $2 million for hurricane reserves. After debate, Commissioner Holly (motion) and a second to keep the countywide millage at last year’s rate carried; staff adjusted the numbers and the board adopted the amended millage and the reduced general fund by formal resolution.

Capital plan, public safety and other items Quinn said the capital plan emphasizes maintaining and upgrading existing infrastructure — including roof replacements at Key West and Key Largo libraries, building repairs at county facilities, detention center repairs and the purchase of the third TraumaStar air ambulance helicopter expected in FY2026. He also noted the budget includes contractually obligated cost increases (for example, a roughly 14.5% compensation increase for some EMS and firefighter contracts) and said enterprise-funded projects (airports and Card Sound Road bridges) are supported by operating revenues or tolls rather than ad valorem taxes.

Public comment and nonprofit funding Two public speakers addressed the board during the hearing. Isabella McLean, identified as a Key Largo resident, community activist with Planning with Love and a Monroe County planner, urged the commission to reconsider cuts to nonprofit funding and to reconvene after state-level guidance is released. She said the county should "rethink how we protect and preserve essential nonprofits" and asked commissioners to “reconvene in January after the state Doge priorities report is released to reevaluate the budget and consider piloting this framework.”

A second speaker representing a local domestic-violence program warned that a 50% cut to nonprofits would imperil outreach services and could leave the county with only emergency shelter capacity from that provider.

Votes at a glance - B2 — Approval of two agreements with Guidance Care Center: (1) substance abuse/mental health services, $902,000; (2) Jail In-house Program (JIP), $356,615. Outcome: approved. Vote (as recorded at roll call): Commissioner Cates — yes; Commissioner Lincoln — yes; Commissioner Rashid — yes; Commissioner Rice — abstain; Mayor Scholl — yes. Notes: county funding for SAMH services recorded as the local match required by Florida statute.

- B3 — Approval of FY2026 contracts with local nonprofit human-services organizations (HSAB recommendations). Total contracts listed in the attachment: $924,522; total HSAB-funded amount cited: $1,101,613. Outcome: approved. Notes: several agreements were handled individually where conflicts existed and one contract was pulled for recusal; the agenda also requested retroactive posting and a waiver of purchasing policy for the HSAB cycle notice.

- B4 — Approval of FY2026 Guidance Care Center Heron Assisted Living Facility Program contract, $22,742. Outcome: approved (roll call recorded affirmative votes; no roll-call abstentions noted for this item in the record).

- B5 — Approval of FY2026 contract with Florida Keys Area Health Education Center (AHEC), $98,694. Outcome: approved (one commissioner abstained as recorded during roll call).

- B6 — Approval of FY2026 contract with Florida Keys Healthy Start Coalition, $55,655. Outcome: approved (one commissioner recorded an abstention due to board membership).

- B7 — Resolution approving the revised table of organization and confirming department heads under the new table. Outcome: approved (motion passed; no opposition recorded).

- C1 — Monroe County Comprehensive Plan Land Authority final FY2026 budget. Outcome: adopted (no changes since prior presentation).

- D1 — Lower and Middle Keys Fire and Ambulance final millage for FY2026 (District 1). Roll call adopted the final millage (final millage 1.9076; 18.9% above rollback rate as read into the record). Outcome: adopted by recorded vote.

- D2 — Lower and Middle Keys Fire and Ambulance final FY2026 budget. Outcome: adopted (roll call recorded affirmatives).

- E2 — County Commission resolution adopting final millage rates for FY2026. The board amended the county commission line from the advertised 2.7327 to 2.6929; aggregate final millage adjusted accordingly. Outcome: adopted (roll call recorded affirmatives).

- E3 — County Commission resolution adopting the final FY2026 budget (adjusted to reflect $2,000,000 less in general fund levy). Outcome: adopted (roll call recorded affirmatives).

What’s next County staff and commissioners flagged further review next January after state-level guidance and FEMA-related developments. Several commissioners said they expect to revisit reserves and the budget during the next cycle if federal or state policy changes widen fiscal exposure.

Quote "This is not just about budgets. It's about the future resiliency of our county," said Isabella McLean, who asked the board to reconvene after state guidance is published to consider a nonprofit-resiliency funding framework.

Ending The board adjourned after final votes and brief recognition of staff work on the budget process.