Cities, county, School Board approve for FY 2025-26
The cities of Kissimmee and St. Cloud, Osceola County and its School District are putting the finishing touches on their budgets for fiscal year 2025-26. In most cases, those years begin Oct. 1.
On Monday, the county approved a budget that pushed $3 billion ($3.075B) for the first time, up from $2.9 billion in 2024-25.
That figure includes $710 million in capital projects. The county is building two new fire stations, and the budget includes 15 new personnel members to man them. There are also road projects underway, such as the widening and improvement of Neptune Road, Simpson Road, Boggy Creek Road, Poinciana Boulevard and Partin Settlement Road.
“These are projects to accommodate expansive growth over past years, and to anticipate future growth,” said Osceola Office of Management and Budget Director Matthew Fuhrer.
The county millage, or tax rate, remains at 8.0876 mills, where county staff say it’s been for 15 years. Over half of what’s collected (53.5%) is earmarked for public safety spending, with 17.3% going to transportation and transit projects and 12.6% to county services and housing.
Just over $25 million is earmarked for park projects and expansions and $10.4 million for a fourth year of Osceola Prosper to allow county student to work toward an Associate’s degree or career certification at Valencia College or Osceola Technical College free of charge.
Another $1.4 billion is earmarked for the next five years for capital improvements, Fuhrer said.
The city of Kissimmee Tuesday passed its $310 million budget that keeps 941 full time and equivalent employees (FTEs) and a 4.6253 millage rate, in place for the 17th year in a row.
The newly adopted budget includes 49 new fire positions, the result of a long-term effort to transition the Fire Department to a "24 (hours on), 72 off" staffing model. Funded by a newly approved fire assessment and reflecting the City’s focus on safety and operational excellence. The budget also adds six new police positions, including officers and sergeants.
"We’re managing population growth, addressing rising costs, and continuing to invest in services that ensure a high quality of life for our residents," City Manager Mike Steigerwald said. "This budget balances operational needs with careful planning for the future.”
St. Cloud held its first of two hearings of its $214.8 million budget Thursday. It includes a 5.1228 millage rate (the same for 13 years), a 1% cost of living increase and 3% pay adjustment for employees, 13 new positions (including six police officers), and an increase in responder operating costs. $51 million of the $87.9 general fund expenditures are for police and fire services.The budget is a 31.5% decrease from the last budget.
The City Council will hold is final hearing to approve the budget tonight at 6:30 p.m. at City Hall.
“This process starts in January, so it won’t be but for a few months that we’ll start this all over again. It’s a very streamlined budget; from a taxpayer’s standpoint, you’re getting good value for your money,” said city Finance Director Jeff Cooper.
The Osceola County School Board approved a budget just over $2 billion. It’s approved 5.306 millage rate actually came down slightly from 5.343. That is slated to generate $331.45 million in local funding; the School District will receive about $500 million from the state. The funding-per-student figure will increase 1.77% to $8,724.
Under this budget, the district will spend $880 million on capital projects—building things like the new Nova Road high school—and $826 million on general spending, like salaries.
Speaking of salaries, the School Board gave final approval to the teachers and support staff contracts. Along with small raises, they offer two half-days available for wellness appointments outside of regular sick time and eliminate mandatory after-school conferences.
Osceola County Educators Association president Janet Moody said 87% of the 55% of its members who voted approved the plan.
“The ‘no’s came from insurance increases, but we feel the district is moving in the correct direction,” Moody said at last week’s School Board meeting.
“There are wins here,” School Board Chair Heather Kahoun said. “We’re committed to creating more wins next year.”
During the budget process, public officials have expressed concerns about dialogue in the state legislature about reducing or eliminating property taxes—a major source in municipal services funding. City Manager Mike Steigerwald noted that property taxes make up about 95% of what the city spends through its general fund.
“Eliminating property taxes wonderful, but how would you fund first responders and stormwater management?” Mayor Jackie Espinosa said. “Reality is creating awareness.”
City Commissioner Angela Eady said residents in cities like Kissimmee stand to lose far more than they’d gain.
“People need to understand where that money goes,” she said.
