Federal Law Change Costs Escambia County $1M in Lost Jail Revenue

Escambia County, FL (NewsRadio 92.3) -- Escambia County is facing a $1 million budget hit this year due to a new federal law prohibiting counties from profiting off inmate phone calls at jails, County Administrator Wes Moreno said Thursday.

Moreno told the Pensacola Morning News that the change has forced the county to absorb costs that were previously offset by revenue from inmate phone services. "They made that change. So, we've had to move that cost to the general fund. It was a little over a million dollars, a million-dollar hit to the general fund," Moreno said.

Moreno defended the previous revenue stream, noting that the money supported inmate programs rather than enriching county coffers. "We were actually utilizing that money for inmate programs and such," he said.

Beyond the phone revenue loss, Moreno highlighted another budget pressure: the tax collector commission formula that requires the county to pay for collecting school board taxes as well as county taxes.

"When the school board raised their nose rate and additional taxes had to be collected, we're paying the commission to the tax collector to do that. We are, not the school board," Moreno explained. With a school referendum pending, that cost could increase further—potentially requiring the county to pay the tax collector to collect money destined for the school board.

Despite these challenges, the county is proposing a modest 2% pay raise for employees and no increase to the millage rate, aligning with a conservative fiscal approach similar to the City of Pensacola's budget strategy.

Moreno noted that roughly $20 million in county expenses fall outside direct control due to state mandates. The county currently has approximately 250 to 300 vacant positions out of 1,900 budgeted staff positions, with corrections officer vacancies representing the most acute shortage at 70 positions.

Moreno presented the budget proposal Thursday morning at the Escambia County Commission meeting, seeking board input ahead of a later session.