Lee County adopts FY2024–25 budget but staff warns surplus depends on one-time fixes

Lee County’s Board of Supervisors adopted the FY2024–25 budget on June 27 after staff presented projected revenue of $98,497,452 and projected expenditures of $96,458,019, figures the county said would produce a $2,039,433 surplus to the general fund reserve for the coming year.

Staff warned the board the apparent surplus depends on two one-time items: roughly $1.5 million in ARPA funds being used to offset FY24–25 expenses and a timing-related “split-billing” revenue recognition that the staff described as a one-time cash win. Staff said those items will not be available in future fiscal years and that, after removing one-time sources, the county faces a structural deficit estimated at about $3 million for the following year.

During discussion supervisors asked about further cuts and whether mandated services could be trimmed. Staff described which services are mandatory and which are discretionary and highlighted the county’s work program as a source of savings because it reduces jail per-diem costs. Staff cautioned that deeper cuts would reduce services and could increase deficits or degrade service delivery.

Following the presentation the board moved to adopt the budget; the motion carried by voice vote. The board also approved a budget appropriation resolution (Resolution 2425) to permit use of funds for specific programs including Head Start, DSS and CSA and to move small amounts into contingency.

Board members thanked staff for their work on difficult budget decisions and expressed concern about the coming fiscal year. Staff said the county will need further work to close the estimated $3 million gap and that the adopted budget is a temporary stabilization rather than a permanent fix.

The board adjourned following routine reports and concluding remarks.