County staff outline 2026 budget calendar and potential effects of property tax reform

HILLSBOROUGH COUNTY — County budget staff on Thursday walked committee members through the annual budget process, explaining how departments and constitutional officers submit requests, how revenue estimates are developed and where the county has discretion to change spending.

"The process starts usually in January, early February," said Tom, a county budget staff member, who described a timeline in which the management budget office issues instructions to departments; departments submit decision-unit forms when they request new resources, associated performance measures and any revenue impacts; and the county administrator compiles a recommended budget that goes to the commissioners in July.

The July presentation is a pivotal moment, Tom said. The board at that meeting typically sets tentative millage rates and flags items for adjustment; the county then holds two required public hearings in September before adopting the final budget.

Why it matters: Property tax and sales tax make up the largest and least predictable shares of locally controlled revenue, and the board—s July action to set tentative millage limits the ability to raise rates later in the year. Staff said that grants and some constitutional officer budgets (e.g., clerk, sheriff) are less directly under commission control.

Staff cautioned the committee about one major budget wildcard: the sheriff—s office. "The sheriff's budget is almost $700,000,000," Tom said. "A 1% swing on $700,000,000 is $7,000,000." He described routine early engagement with the sheriff's office to shape its request but said the sheriff can ultimately appeal state-level decisions.

The county has used recent revenue growth for one-time capital investments, Tom said, including fire station replacements and transportation projects. He added that the county recently secured a 15-year extension on its community investment tax, through November 2026, which provides flexibility to fund capital projects outside the general fund.

Committee members asked how staff are preparing for the possibility of state-level property tax reform. Tom said the county has prioritized one-time investments in recent years and will evaluate the maximum level of recurring expenditures it can sustain if growth revenue is reduced. "We have a pretty unique opportunity" from the community investment tax extension, he said.

The public hearing schedule and the statutory framework for millage-setting mean that any major legislation at the state level likely would affect the 2028 budget cycle more than the 2027 adopted budget, staff said.

What remained unresolved: Committee members pressed for scenarios showing how large revenue reductions would affect specific programs and capital projects. Staff said those analyses would be part of next year—s budget work but did not provide concrete cut lists at the meeting.

Votes at the meeting: The committee approved the minutes of the Oct. 6 meeting by voice vote after a motion from Cliff Curry; the motion passed with vocal "ayes."