Last week, local governments received an emailed letter from the state a version of President Donald Trump’s Department of Government Efficiency, or DOGE. Gov. Ron DeSantis created it last month through an executive order.
The state team, the letter says, “will use advanced technology to identify, review, and report on unnecessary spending within county and municipal governments and recommend legislative reforms to promote efficiency, maximize productivity, and eliminate waste in state and local government. These efforts are focused on ensuring fiscal responsibility throughout Florida.”
In addition, the team will review whether cities and counties are complying with existing law regarding state oversight of local finances. “We respectfully request confirmation,” the letter says, of whether a city has “encountered any instances of financial emergency or distress.” Those “instances” could include failure to make debt payments, failure to pay claims by creditors, or “having an unreserved or total fund balance deficit in the general fund or any major operating fund that persists for two consecutive years.”
The letter advises cities and counties to respond by April 8 “to ensure timely review and, if necessary, assistance from state authorities.” If a city doesn’t respond within 45 days, “It will be presumed that your municipality is in possible statutory violation and in need of assistance.”
According to the governor, the state team also will review spending at Florida’s public universities. State agencies must submit monthly reports as part of what the governor claims is a campaign to improve fiscal accountability.
Democrats have called DeSantis hypocritical. Any wasteful spending, they said, comes from 26 years of Republican control of state government. They also point out that DeSantis has cost the state tens of millions in legal fees from lawsuits challenging state policies enacted during his terms.
The DOGE campaign most likely stems from DeSantis’ attempt to position himself for a second presidential run in 2028. Indeed, DeSantis gave interviews last weekend in Washington as he joined Republican governors to call for abolishing the U.S. Department of Education. On Monday, he was in Idaho and Montana.
Despite the potential presumption of guilt in the letter, it could amount to nothing. Boca Raton and Delray Beach will respond that there have been no “instances.” The letter cheerily ends, “We appreciate your cooperation in maintaining the fiscal integrity of local governmental operations.”
But the letter says the DOGE team will work to end “unnecessary spending” and “eliminate waste.” Those are subjective terms. News reports show that Elon Musk’s White House DOGE team has vastly inflated its claims of budget savings to include not obvious waste or fraud but programs that Trump and Musk don’t like.
Similarly, DeSantis claimed to have “refunded” nearly $1 billion from Florida to the federal government, “due to the ideological strings attached by the Biden Administration.” But he did not cite any of those “strings,” and DeSantis accepted nearly $10 billion from President Joe Biden’s COVID relief bill as he was criticizing overspending in Washington.
The governor also has asked local governments to ask for audits from the state. And items 4 and 5 on that list are subjective enough that city hall gadflies could go around their local officials and send accusations to the state.
I’ll have more when Boca Raton and Delray Beach respond to Tallahassee’s micro-managing request.
Remembering the Delray-Highland Beach fire debacle
Delray Beach knows from recent experience to beware of ambushes by Tallahassee.
Two years ago, a pair of Republican House members arranged at the last minute to have the Legislature’s audit committee accuse the city of overbilling Highland Beach for fire-rescue services. One of those members, FL Rep. Peggy Gossett-Seidman, represents Highland Beach.
The clear intent was to have the state do Highland Beach’s work. Instead, the audit found that Highland Beach owed Delray Beach $2.2 million for underpayments from 2017 to 2021. Highland Beach ended the contract and formed its own department based on the city’s alleged overbilling.
The issue remains unresolved. In a March 13 letter to the state, Delray Beach Chief Financial Officer Henry Dachowitz said the city has hired a consultant “to recalculate the actual expenditures we incurred on behalf of Highland Beach.” Dachowitz’s tone suggests that the city may believe that the number is greater than $2.2 million.
Delray looks into hiring practices
Tallahassee micro-managing was on City Manager Terrence Moore’s mind when the subject of Delray Beach’s disparity study arose at a meeting this month.
The city and the Community Redevelopment Agency combined to spend $300,000 to determine whether Delray Beach’s contracting process discriminates against women- and minority-owned businesses. If it does, the study also would propose ways to make the process fairer.
Moore cautioned that the city should wait on the findings and any action. Also mimicking Trump, the state at every level is banning diversity, equity and inclusion (DEI) policies. It would make no sense for Delray Beach to make itself a target of the state, even if the study found discrimination. Delray Beach can revisit the issue if the political climate changes.
A new water plant for Delray Beach?
Delray Beach’s water plant will cost more than twice the estimate from two years ago.
City commissioners learned of the increase—from $129 million to $280 million—this month. According to the city’s consultant, the main cause is new federal rules regulating polyfluoroalkyl substances (PFAS). Known as “forever chemicals” because they take so long to break down, PFAS have been linked to serious health issues, including cancers.
In addition, the consultant and city officials now believe that Delray Beach requires a whole new plant, with no role for the current facility. Of that $280 million, $247 million will be for the plant itself, with $33 million for wells to store treated wastewater underground.
Three years ago, the commission approved higher water and sewer rates to finance the plant. The higher cost will require higher rates. The average single-family home rate of $69.11 was set to rise in October to $72.20. That will increase to $78.43. In another six years, it will rise to $116.80. After that, the consultant said, rates will “level off.”
In 2021, the city approved a consent order with the state to resolve water-quality problems. Perhaps because of that recent history, no commissioner objected to the higher cost and rates. Commissioner Thomas Markert asked if security would be tighter at the new plant. The consultant and Utilities Director Hassan Hadjimiry said the plant would feature higher fences, a single entrance and other deterrents against sabotage.
Palm Beach County in top 5 for size
Sometimes, it’s helpful to get a reminder of how different this area is from most of the country.
According to the new census, only 50 of the 3,144 counties in the United States have more than 1 million residents. Palm Beach County’s population is nearing 1.6 million. Five other counties in the state also are home to at least 1 million. In 1970, only 23 counties nationwide were that big, so the trend toward urbanization continues.
