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• Meanwhile, the state is worried about future revenue projections and the potential impact offederal-level DOGE initiatives on its funding. It's unrealistic to assume local governments won't be impacted if state revenues are at risk. The state has demonstrated this in the past by reducing state revenue sharingfunds and diverting trust fund revenues for other purposes. Florida House Speaker Perez has noted, "None of us know what the future holds ... When we had a recession, the state of Florida was not prepared forthat recession. We began to scramble." Thus, as much as the state is preparingforthe impact of an economic contraction and the potential of reduced intergovernmental revenues, so should Indian River County. Now is the time for the Countyto act to protect our abilityto fund and sustain local government operations and essen' services. It is imperative that we adopt a vigilant approach to fiscal responsibility to navigate these headwinds. Ourgoa to protect the County's ability to fund operations and essential services in the short term but also position ourselves to seize opportunities when the economy stabilizes and begins to expand. Legislative Concerns Equally troubling are potential mandates or actions from the Florida Legislature that could reshape local government finances. Proposals to cut sales tax, expand homestead exemptions, and roll back millage rates threaten to disrupt traditional revenue sources, risking financial instability. We must proactively reassess budget priorities and adopt a conservative fiscal plan that will not only help mitigate and plan for potential revenue shortfalls but also fortify our long- term resilience. While many economists predict a contracting economy without a full recession, they anticipate growth returning by 2028 or 2029 (depending on the forecast). Historically, local governments feet the effects of a slowdown or contraction in the economy later than the general public and private sector. Conversely, local governments typically lag one to two years behind the private sector during economic recovery and expansion. Proactive Financial Management Given the potential challenges, duringthe upcomingfiscalyear County Adm inistration and the Office of Management and Budget staff will implement several measures to include, but not limited to: Quarterly Reviews: County Adm inistration and the Office of Management and Budget staff will meet quarterlyto review and monitor expenses and revenue trends, as well as other leading economic and financial indicators. If warranted, we will identify and develop appropriate measures to ensure expenses are in line with revenues. Revenue Diversification and Grants: Identify and explore new revenue -generating avenues, such as being more proactive with grant opportunities with the addition of a Budget & Grants Analyst position. We will additionally continueto collaboratewith Legislative Affairs to monitor legislative proposals that could threaten local revenue is sources or identify opportunities to fund projects.