Hernando County’s budget for the upcoming fiscal year took center stage during discussions among the Board of County Commissioners at the July 10 budget workshop.
County officials presented financial figures that require approval before the new fiscal year begins on October 1. The proposed budget totals $956,338,363, an increase from $940,345,359 in 2024-25. The financial impact of Hurricanes Helene and Milton has been significant.
“Last year was financially challenging for the county,” County Administrator Jeff Rogers explained. “These two storms in October were unexpected. While Florida residents generally expect storms, we’ve been fortunate for many years to avoid direct hits and major impacts. The financial consequences last year, while we’re still recovering, could reach as high as $24 million. At minimum, we’ve spent approximately $18 million on storm-related expenses.”
The county recently received $7 million from FEMA, representing full reimbursement from the federal agency for the first 90 days of storm recovery. While this was an unexpected benefit, Rogers doesn’t anticipate similar reimbursements in the future.
“We need to be self-reliant rather than depending on federal and state assistance to resolve Hernando County’s financial challenges,” Rogers stated. “I don’t foresee 100% reimbursement for storm events happening again.”
He suggested that future block grants for counties might require substantial upfront matching funds. Potential changes in property and sales taxes, along with increases in SNAP funding, could also influence disaster preparedness.
Board Chairman Brian Hawkins noted that having independent funding sources for storm cleanup enables quicker response. “One issue we encountered last year was being slowed down by federal government procedures for debris measurement and asset mobilization. Being able to act independently would allow us to respond more efficiently if those funding mechanisms become unavailable.”
Economic development was another key discussion point. Staff recommended transferring funds annually to the Economic Development Infrastructure fund. Reserves for economic investment will require an increase of $968,932, combining with current reserves of $779,942 for a total of $1,748,874.
“Ideally, we would do this every year, though during difficult economic times it wouldn’t be mandatory. It represents a valuable investment in the county’s future,” Rogers said.
The funding would come from a portion of intangible taxes paid by targeted industries, supporting infrastructure that would facilitate business expansion.
Commissioner John Allocco clarified that the infrastructure investments would be county-owned. “We’re taking a percentage of tangible taxes paid by businesses on equipment and reinvesting in county infrastructure to support industry growth.”
Many infrastructure projects qualify for grants, but the county would need matching funds to access these resources.
Rogers noted that several businesses are ready to invest in Hernando County but face infrastructure challenges. “I often get asked why major logistics companies and pipe manufacturers are located in Pasco County. The workforce is similar, and we’ve done excellent work in workforce development here. Our taxes and impact fees are lower than Pasco’s. The main issues are location, which is difficult to change, and infrastructure availability. As we begin investing with a clear plan, companies will be more inclined to establish operations here.”
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Hurricanes, Economic Growth a Focus for County Budget Talks
County staff spoke at length in front of the board, presenting figures that need approval in time for the new fiscal year to begin on Oct. 1.
The proposed budget for the county will total $956,338,363, up from $940,345,359 in 2024-25. Hurricanes Helene and Milton have proven particularly costly.
“Last year the county went through a tough financial year,” County Administrator Jeff Rogers said. “Those two storms that we encountered in October were unforeseen. While we do live in Florida and we kind of should be expected to know that a storm will hit us, we’ve been blessed many, many years of not having direct hits and significant impacts.
“The financial impacts last year, while we’re still recovering and spending dollars, could be as high as $24 million. Definitely $18 million, could even go as high as $24 million as our predictions currently of dollars that have been spent and are still being determined the final numbers to be submitted to FEMA hopefully for reimbursement.”
The county recently received $7 million from FEMA, a 100% reimbursement from the federal agency for the first 90 days of storm recovery. That was a pleasant surprise, but one Rogers doesn’t anticipate in the future.
“We need to be able to stand on our own rather than relying on federal and state people to resolve Hernando County’s financial problems for us,” Rogers said. “I don’t think you will see the 100% on your storm events ever again.”
Rogers believes there could be a block grant applied to counties moving forward, which would require “a substantial match up front to get those dollars.” Potential decreases on property and sales taxes, as well as increases in SNAP funding could also factor into disaster resiliency.
“I think one of the things that’s a benefit in regards to the storm cleanup is that if we have a funding source we are able to get boots on the ground quicker, the cleanup done quicker,” Board Chairman Brian Hawkins said. “Because one of the things that was happening, we were getting bottlenecked by the federal government. To be able to stage, to be able to actually count the amount of tonnage and the pounds and all that stuff of all the debris that was being picked up. As well as mobilization of certain assets and contracts.
“It is one thing that we talked about last year during that storm season was how we can be resilient within our own budget to ensure if those funding mechanisms are no longer available that we’re able to go and move much quicker.”
The other major topic of discussion was economic growth. Staff has recommended to the board an annual transfer into the Economic Development Infrastructure fund. Reserves for economic investment will need a $968,932 increase, combining with current reserves of $779,942 for $1,748,874.
“We would hope you could do this every year. Obviously in lean times, when bad times come obviously it’s not something you have to do. But it’s a great investment in the future of the county,” Rogers said.
The money would come from a percentage of the intangible taxes paid by targeted industries, providing for infrastructure that would allow those businesses to expand.
“I think it’s important to mention that the infrastructure we’re talking about would be county-owned infrastructure. I want to make sure the community understands that,” Commissioner John Allocco said. “We’re taking a percentage of the tangible taxes, the taxes that are on equipment and things like that these businesses are paying, and then reinvesting in infrastructure to grow those industries but investing into infrastructure that’s actually owned by the county.”
Also many infrastructure projects are eligible for grants, but the county would need matching funds to receive those grants.
“I think we have businesses today that are ready to invest in Hernando County. Some of those hiccups become of the infrastructure,” Rogers said. “I get asked a lot, ‘Why across the road in Pasco all those big logisticals and pipe manufacturers and things are in Pasco?’ There’s only really two reasons. The workforce is the same and we’ve done a great job in workforce here. Our taxes are lower than Pasco. Our impact fees are lower than Pasco.
“It is really two things. Location, tough to solve that. Infrastructure and availability, that is the only issue there that’s left for us to solve. As we start investing and having a plan, companies will start planning to be here once we have a plan that shows we’re going to pay for these things and make it happen.”