County Budget Strained By Increased Spending
Up 169 Percent Since 2022, Some Expenses as Much as 270 Percent
Clay County is growing fast but spending faster. Now county leaders want to raise taxes on electricity to cover an anticipated funding shortfall.
A review of past budgets shows that problem began in 2022-2023 fiscal year (FY), when the total county budget was just over $303 million. The budget for 2024—the current budget—is $817 million, representing a 169 percent increase from the previous period.
According to the U.S. Bureau of Labor Statistics, inflation from 2022 to 2024 was just over 12 percent. Clay's population increased by 4.2 percent.
On July 8, the Board of County Commissioners held a workshop and an official meeting to discuss the FY 2025-2026 budget. The main point of contention was a proposed increase in a tax on electric bills.
The county is still finalizing the details of the budget for next year, and balancing the budget without raising taxes has become a challenge. Commissioners say the county needs new revenue streams to cover a budget shortfall, and some are supporting an increase in the electricity tax. Commissioners and county staff have framed this as a new issue, one that is uniquely caused by problems not present in years past.
Comments from Clay residents online and at the meeting decried the increased electricity tax as unnecessary and burdensome, especially for the less affluent and elderly in the county who are already living on a tight budget. One Senior Citizen went as far as to say they would be forced to choose between medicine and electricity. Several people also commented that the county’s track record suggested a pattern of poor financial stewardship.
“Revenues are not a problem,” said county resident David Coughlin. “Spending is a problem.”
Commissioners had varied opinions on the proposed electricity tax. Betsy Condon and Alexandra Compere pushed back on the need for the tax, while Jim Renninger, Kristen Burke and John Sgromolo offered more support.
Sgromolo, in particular, has been vocal about the electricity tax. His support started well before last week’s meetings, with Sgromolo claiming in a previous meeting that anyone who didn’t support the tax wanted to “defund the police.”
The idea is difficult to defend, given the fact that the Clay County Sheriff’s Office Budget has increased from $76 million to a proposed $109 million from FY 2022-2023 to FY 2025-2026. That 43 percent increase would appear to reflect full-throated support of law enforcement.
While the CCSO’s budget isn’t the only one with significant increases, Sheriff Michelle Cook has been campaigning publicly and behind the scenes for new revenue streams, such as an increased electricity tax. Publicly, Cook has been transparent about the need to pay CCSO employees a higher salary. Cook has also been campaigning for a new jail, as the current one, in Cook’s estimation, is outdated and too small.
Sources close to the budgeting conversations revealed that BCC members and county staff have felt pressured by Cook and members of the Clay County Sheriff’s Office to adopt the FY 2025-2026 budget with no revisions. Sources also said that the idea to increase electricity taxes originated specifically with Cook through the Florida Sheriffs’ Association. The Sheriff’s Association, among other things, trains and equips its members on tactics to lobby for increased funding.
Taxes on items like electricity are often targeted because they are easier to implement and do not require a ballot initiative for voters to approve. Ultimately, the electricity tax increase was defeated in a 4-1 vote, with Commissioner Jim Renningger being the only vote in favor of the tax increase.
While Sgromolo is fully on board with the CCSO’s budget, James Renninger did offer a subtle critique of the Sheriff during the July 8th board workshop, remarking to Cook that her plan to double staff positions was ‘luxurious.’
The budget woes extend beyond a single department, as spending across the board has increased in almost every category since the FY 2022-2023 budget. The current year FY 2024-2025 budget was finalized in September of 2024. When you compare this budget to the FY 2022-2023 budget, the county's spending problem becomes crystal clear. Here are a few parts of the budget that stand out:
Regional Sports Complex
The million-dollar park, located in the woods near Camp Blanding and not initially available for public use, has seen a significant increase in proposed funding, jumping from $267,238 to $993,552—a 270 percent increase from last year’s budget to the 2024-2025 budget. It is unclear from the budget documents on the county’s website whether this regional sports park will generate any revenue to offset the costs of maintaining the park.
Capital Projects Management Department
In FY 2024-2025, the county government created a new department to“take a capital project, as determined by the County’s Senior Leadership, from a customer’s concept through design, permitting, build-out, and turnover the project to the customer in the safest and most efficient delivery method.” The pricetag for this new department is $1.4 million.
Some employees and concerned taxpayers remain uncertain about the purpose and scope of the county’s newly created department. They have also had persistent questions about transparency, oversight, and whether the department aligns with existing county systems or if it is unnecessary redundancy.
Public Safety–Administration/Communication
The administrative wing of the Public Safety department experienced a 50 percent increase in FY 2024-2025, rising from $3.2 million to $4.8 million. The reasons for the increase were sparse in the budget documents, which stated the funds would “ensure efficient operation” and “maintain supplies and readiness.”
Economic Development
Long a place that people have to drive out of for decent-paying jobs, the county has sought to incentivize businesses to operate in Clay County. This often manifests in allowing new businesses to be exempt from fees that regular citizens are required to pay. This is the part of the budget the county used to give millions of dollars in tax incentives to the Niagara bottling plant years ago, which has hired very few people from the community while draining millions of gallons of water from the aquifer. The Economic Development initiative saw a jump in funding, from $ 806,000 to $1.2 million, a 49 percent increase.
Green Cove Springs Pickleball
While not tied to a particular year’s budget, the county has offered to give the city of Green Cove Springs $450,000 for pickleball courts. But everyone’s favorite current outdoor fad may end up costing much more than that, as Green Cove’s leadership has revised the plan for the courts to include more expensive options. The cost of the courts is now estimated to be upwards of $1.4 million.
This Year’s Spending, Next Year’s Austerity
All of the items you have read above are already approved to be paid for in the current year’s budget. The increased spending has led to hard conversations about next year’s budget, as their desired spending has outstripped their funds by $17 million.
The Board of County Commissioners and county staff will continue to craft and discuss the 2025-2026 budget over the next few weeks, with a proposed budget expected to take shape by the end of August.