Cents & Sensibility: Alachua County’s Budget in Eight Chapters
With all the discussions happening across Florida about local government budgets, Alachua County is joining the conversation through this series: Cents & Sensibility: Alachua County’s Budget in Eight Chapters.
This series breaks down how the county budget really works, where the money comes from, how it’s used, and how decisions are made that affect daily life in our community. Each chapter explains one piece of the budget puzzle in clear, practical terms, because understanding your local government’s finances shouldn’t require a finance degree.
Chapter 5: Why Budgets Grow Over Time
When people hear that the county’s budget has grown, it’s easy to assume government is expanding. Most of that growth, however, stems from increasing costs — not necessarily from new programs.
Budget growth means keeping pace with inflation, population growth, and the rising costs of providing the same services to more people.
Inflation and Population — The Invisible Drivers
Census data from the past five years shows Alachua County’s population has grown by about 8%, while regional inflation has increased by roughly 21%. In some cases, costs for goods and services far exceed that. Paired together, that means the same level of service now costs more than it did five years ago, even without any new additions.
Every year, the County Commission must balance new costs, inflation, and community expectations with available revenue. This requires tough choices that prioritize essential services while managing future needs.
Strong financial management helps ensure that budget growth reflects the cost of maintaining services, not unchecked expansion.
Despite the increased cost to provide services and programs, the county has reduced the property tax burden by reducing the general fund millage rate (the amount per $1,000 of value that you pay) for nine consecutive years. If the county had adjusted its property tax collection for population and inflation, it would have collected approximately $41 million more in property taxes.
For more information on property taxes, read Chapter 3.
Building for a Growing Community
As the population grows, so does the need for capital projects such as new fire stations and parks. These capital investments often span several years and are crucial to maintaining a high quality of life. Public safety services, including law enforcement and fire/EMS, must be expanded to meet the needs of a growing population. The county also invests in advanced technologies to streamline costs.
The Rising Cost of Services
From asphalt and fire trucks to software and medical supplies, nearly every item the county purchases now costs more. Construction inflation has outpaced general inflation, making infrastructure projects significantly more expensive.
Even routine maintenance, such as resurfacing roads or replacing roofs, requires more funding than it did five years ago.
For example, in the last five years, the typical resurfacing project for a 1-mile road (just asphalt) has spiked from $170,268 to $389,616. That's an increase of 129%. Meanwhile, the county's gas tax revenue has actually gone down during that timespan.
Paying the People Who Keep the County Running
As previously noted in Chapter 2, more than half of the county’s general fund supports personnel costs. Competitive pay and benefits are crucial for attracting and retaining law enforcement officers, firefighters, paramedics, engineers, and other skilled professionals.
State Mandates That Add Up
Some budget growth comes from state-imposed costs that the county must pay, even though it doesn’t control them, as noted in Chapter 4: Unfunded Mandates. This includes funding for Medicaid, juvenile justice, the court system, and the Medical Examiner’s Office.
When the state increases requirements or shifts costs to local governments, those expenses appear in the county’s budget.
Summary
County budgets grow not because of unchecked spending, but because serving more people at higher prices incurs higher costs. The challenge is balancing rising costs, state-imposed obligations, and providing fair pay for employees while maintaining stable local tax rates.
A growing budget can be a sign of a healthy, forward-looking government, one that plans responsibly for the future while continuing to deliver essential services today.
UP NEXT - Chapter 6: Reserves - Planning for Rainy Days
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