Escambia County staff warns House bill could cut $79 million from general fund; board leaves 2% pay increase in proposed budget
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Summary
County staff told commissioners House Bill 203 could reduce the county general fund by about $79 million and urged the board to delay final property‑tax decisions until after the state special session; the board tentatively kept a 2% across‑the‑board pay adjustment in the draft FY2026–27 budget.
Stefan, a county staff member who presented detailed fund‑level analyses, told the Escambia County Board that House Bill 203—the homestead property tax reduction proposal—“would impact the county general fund at an estimated $79,000,000,” and that the county library system could lose roughly $4,000,000.
Stefan said his packet given to each commissioner shows that roughly 86% of the county general fund is fixed by statutory mandates and constitutional obligations, leaving only a small portion discretionary. He urged the board not to make final decisions on property‑tax funding until the state completes any special session and the county can quantify the full financial impact. The materials include pie charts, fund summaries and a personnel staffing review stretching back to FY2007.
Commissioners pressed staff on contingency plans if the Legislature adopts a large rollback. Commissioner Kohler asked, “What plan are you putting together if the legislature does this whammy on us?” Stefan said contingency conversations with the county administrator have considered using vacancies and targeted reductions but warned, “It will not be easy. It will not be pleasant,” and acknowledged that the county could have to increase millage rates for remaining taxpayers to cover some losses while also making “drastic…service cuts.”
Allison, the county’s lobbyist, told the board she has heard any special session tied to the proposal could come closer to August and that final language has not been circulated; she said items involving voters would likely take effect in a subsequent fiscal year because of ballot and implementation timing.
Staff asked the board to include a 2% one‑time, across‑the‑board pay adjustment in the FY2026–27 budget packet while the county continues to model impacts. Stefan provided estimated costs: roughly $2,500,000 for the Board of County Commissioners (BCC) payroll and about $1,400,000 to the county general fund; smaller amounts would be charged to the misdemeanor probation fund (about $21,000) and the transportation trust fund (about $185,000). Several commissioners supported leaving the 2% in the draft budget while also directing staff to address pay compression and recruitment priorities.
The materials and timing discussion will be revisited at a budget workshop scheduled for July 23, and staff asked the board to defer any final property‑tax decisions until after the state session so the county can quantify the fiscal impact.
