An analysis shows that City of Tallahassee general funding spending growth form 2019 through 2026 outpaced the combined growth rates of population and inflation by approximately 19 percent.
Spending Growth
From 2019 to 2026, COT general fund spending increased from $151.5 million in 2018 to $225.945 million in 2026, a 49.1% increase. During this same period, population growth (3.31%) and inflation (26.8%) totaled 30.1% growth.
The graph below shows that general fund spending growth followed population and inflation growth from 2019 through 2023. However, from 2024 to 2026 spending accelerated relative to population growth and inflation rates.
If general fund spending had followed population and inflation growth rates since 2024, the 2026 proposed budget would have been approximately $197.0 million or $29.0 million less than the approved 2026 budget of $226.0 million.
City Responds to Spending Growth
Tallahassee City Commissioners recently voted 3-2 to offer “voluntary separation” to its entire workforce of 2,700 employees beginning in May. Eligible employees, which are those hired before Jan. 1, 2026, who agree would be paid $20,000 or 12 weeks of pay. Those employees would keep health insurance through the end of the calendar year. The city expects between 100-175 employees may separate.
“The program is intended to reduce and contain personnel expenses, minimize the impact of workforce reductions on employees and provide employees with an option if they’re considering retirement or other career opportunities,” Resource Management Director Robert Wigen said during the city’s latest budget hearing. The reduction in positions would assist in balancing Fiscal Year 2026’s budget, with more impact Fiscal Year 2027.
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