A complete rollback of Pinellas County’s General Fund millage rate for 2026 may be within reach. At a recent budget workshop, Commissioner Chris Scherer proposed more than $26 million in cuts, calling a rollback “entirely attainable.” But critics warn it could lead to budgetary shortfalls later.
The county’s millage rate is the property tax charged per $1,000 of a property’s value, which funds day-to-day operations. With rising property values, taxes would normally increase if the rate stayed the same – hence the rollback proposal.
Reducing the millage rate to about 4.4 Mills would relieve homeowners of escalating property taxes.
Achieving that rollback requires $25 million in budget cuts. Scherer’s proposal goes beyond that figure, targeting health benefit reserves, human resources, the office of human rights, the office of resiliency and asset management, workforce relations, construction and property management, and human services.
“These cuts will have no effect on the core functions of our government,” Scherer argued. He added, “I’m not looking to eliminate people … I’m looking to downsize empty position and departments and offering an opportunity to transfer to a department or county that’s fully funded.”
However, the largest proposed cut would not come from shrinking departments, but from employee health benefit reserves. According to a memo from Scherer’s office, the reserve holds more than $130 million – over twice the county’s annual healthcare costs. Scherer estimates nearly $18 million in savings.
Barry Burton, Chief Administrative Officer, warned that the reserve also covers other projects, not just healthcare. He cautioned that slashing $18 million would be “one-time money” and could leave the county “in the red” next year, since those funds are tied to ongoing costs.
Commission Vice Chair Dave Eggers suggested “drawing down” the healthcare reserve gradually over 10 years instead of all at once. While this approach would spread the costs across generations and reduce interest burdens, it would also place more pressure on current taxpayers.
Commissioner Brian Scott noted, “We need to look for cuts where we can, but we don’t know what we’ll have to fund up in the future.” He stressed that while cuts are necessary, uncertainty at the state level makes planning difficult.
Indeed, that uncertainty stems from Governor Ron DeSantis, who is considering reducing – or even eliminating – property taxes. If enacted, such a change would drastically impact local budgets. Cutting $18 million in a single year from the reserve fund, therefore, carries significant risks.