OKEECHOBEE -- In a July 24 letter to the Florida Legislature, Okeechobee County Commissioners urged them to consider the impact of the proposed change in Homestead Exemptions on fiscally restrained, rural counties. They also pointed out how much of the current budget comes from outside sources and how their use of this funding is restricted.

The county’s total budget for fiscal year 2025-2026 is $168.54 million, approximately 13% lower than the previous year’s budget.

Much of the funding in the budget came from grants and intergovernmental revenue, the letter signed by Commission Chairman David Hazellief explains. This includes dedicated fuel-tax proceeds, state and federal grants and other legally restricted resources. This funding cannot be used for anything other than the use or project specified.

“These investments are valuable to Okeechobee County, but they are one-time, reimbursement-based, or purpose-restricted. A grant for a road, fire station, housing program or park cannot be redirected to recurring law-enforcement staffing, constitutional officer obligations, elections, libraries, veterans’ services, emergency management or daily county operations,” the letter continues.

About 20% of the county’s current budget came from ad valorem taxes (property taxes). While it is a small part of the total budget, ad valorem taxes provide the majority of revenue for the county’s General Fund. “For a fiscally constrained rural county with a limited commercial tax base, ad valorem revenue is the stable local foundation supporting public safety, constitutional duties and other continuing services,” Hazellief wrote.

Commissioners discussed the letter at their July 23 meeting.

“People don’t really understand what we fund in this community,” said Commissioner Terry Burroughs. “I hear governments are wasteful. I am not naïve enough to say there is nothing  we can cut here. But you can’t use a sledgehammer on this kind of process. “

He said state law requires the county to fund some things, but many services community residents enjoy are not state-mandated.

“Senior services, veterans’ services, parks and recreation and libraries – we are not required to fund them,” he said. Burroughs added the current commission is not willing to defund programs like the food for homebound seniors.

“People in this community should have a little more insight and try to understand what we are doing,” he said.

The amendment to increase the Homestead Exemption will be on the November ballot. It will not impact school funding.