Joint Meeting: Budget Discussion for FY 2025-2026

This joint meeting of the Appropriations and Government Efficiency & Transparency committees was held to discuss the upcoming Fiscal Year 2025-2026 budget. Chairwoman Raquel Regalado and Chairman Juan Carlos Bermudez opened the meeting, noting a tough budget year with a $402 million gap, a need for right-sizing government, and a focus on protecting essential services while reducing costs. No formal votes were taken; the meeting served as a forum for presentations and board discussion to guide the administration as it prepares the proposed budget.

State Legislative Fiscal Update

• Jess McCarthy (Intergovernmental Affairs) presented via Zoom on the recently concluded 2025 legislative session. Key fiscal impacts include:
  • Tax Package (HB 7031): Eliminated the business rent tax, reducing county revenue sharing by $12 million and cutting transit and Jackson half-penny revenues by $26 million each. Other provisions (sales tax holidays, property tax relief for affordable housing, aviation fuel tax elimination) have additional, unquantified impacts.
  • Transit New Start Match: Elimination of documentary stamp funding for state match of federal new-start projects (e.g., Northeast Corridor) will cost Miami-Dade a share of an estimated $40–50 million statewide impact.
  • FRS Employer Contribution Rates: A $149 million statewide increase; Miami-Dade’s portion was already factored into the administration’s projections.
  • Avoided Impacts: Bills on local option tax referendums (every eight years) and sovereign immunity increases did not pass, sparing the county significant costs.
  • Upcoming 2026 Session: Property tax reform is expected to be a major topic, with potential ballot measures in November 2026.
• Commissioners expressed concern about the half-penny revenue losses and their absence from the original gap calculation. The administration confirmed the general fund gap grew from $387 million to approximately $402 million after the new state impacts.

Budget & Personnel Growth Analysis

• Yinka Majekudummi (Commission Auditor) presented data on county budget and position growth over the past five years:
  • Total budget grew from ~$9 billion (2021) to ~$12.7 billion; operating budget rose from $5.7 billion to ~$8 billion.
  • Positions increased from 28,000 to 31,000.
  • Personnel costs account for 57% of the operating budget; contractual obligations consume most of the remainder, leaving only 3–18% non-contractual flexibility.
  • A breakdown of general fund allocations by department was provided to help identify where cuts could most impact services.

Discussion on Right-Sizing and Efficiency

• Chairwoman Regalado emphasized that cutting positions should not default to last-in-first-out; instead, the county must evaluate the value and necessity of jobs, especially at upper levels. She called for protecting day-to-day service-delivery positions and eliminating unnecessary programs and “creatures of the pandemic.”
• Commissioner Micky Steinberg and others stressed the need for performance measures and a deeper review of tasks and outcomes. Suggestions included zero-based budgeting and identifying overlapping or outdated services.
• Commissioner Roberto Gonzalez proposed that leadership and program effectiveness be scrutinized before cutting frontline workers, noting the need to retain high performers.
• Commissioner Danielle Cohen Higgins advocated for transitioning employees to constitutional offices or enterprise departments to minimize layoffs and payout costs.
• Several commissioners supported reducing marketing and advertising budgets, using social media and digital tools instead.
• Chairman Bermudez noted that government must shrink by 10–15% over the coming years and called for a culture of continuous efficiency improvement, not just a one-time cut.

Tax Relief Discussion

• Commissioner Juan Carlos Bermudez raised the possibility of lowering the millage rate to provide tax relief, though he acknowledged that would require deeper cuts. He noted that a flat millage is effectively a tax increase when property values rise.
• Chairwoman Regalado expressed openness to tax reduction but emphasized that “real tax relief” should target those most in need (e.g., long-time homeowners). She mentioned the county’s existing “Save Our Seniors” program as an example of targeted relief.
• The board agreed that no option should be off the table, but the immediate priority is balancing the budget while maintaining necessary services.

Key Outcomes

• Next Steps: The administration is expected to present the proposed FY 2025-2026 budget by July 15, 2025 (the board requested an earlier July 9 preview). The commission will set the millage rate on July 16.
• Ongoing Analysis: The commission auditor will continue to provide detailed data on position tasks, union vs. non-union status, and performance measures to inform future decisions.
• Commitment to Efficiency: The board agreed to pursue a multi-year, systematic approach to right-sizing government, with continued scrutiny of programs, contracts, and personnel to focus on core services and value to residents.