State appointees will soon scrutinize the City of St. Petersburg’s budget and nearly every other aspect of local government.

The Florida Department of Government Efficiency (DOGE) has selected the city for further review and on-site inspections. A letter obtained by the Catalyst notes that the agency will access “physical premises, data systems and responsive personnel” Aug. 13 and 14. 

The letter, dated Aug. 1 and addressed to Mayor Ken Welch, begins by admonishing the city for alleged financial mismanagement. It states that property owners have seen their tax “burden” increase by over 75%, more than $95 million, since 2019. 

“Although the city has lowered its millage rate during this time period, collections have increased at a far faster pace,” a DOGE representative wrote. “These property tax collections have helped pay for a rapidly growing general fund budget: Nearly $130 million in growth, almost 50%, in that same period.” 

St. Petersburg’s letter mirrors correspondence sent to Pinellas County officials July 28. However, the city is often at odds with the state due to its support for diversity, equity and inclusion (DEI) and green energy initiatives. 

Eric Soskin, senior advisor to the governor and DOGE team lead; Blaise Ingoglia, the state’s chief financial officer; and Leda Kelly, director of the Office of Policy and Budget, signed the latest local mandate. Gov. Ron DeSantis designed the agency, announced in February, to mirror the federal version and “eliminate waste,” “save taxpayers money” and “ensure accountability.” 

“We have received a follow-up letter from the State Division of Governmental Oversight and Efficiency and are reviewing carefully,” Welch said in a prepared statement. “The City of St. Petersburg will fully cooperate, providing any additional information or clarification as requested.

“My administration’s Principles for Accountable and Responsible Government continue to guide our work.”

The letter states that citizens expect elected officials to spend their tax dollars responsibly rather than recklessly, “and on truly necessary programs.” St. Petersburg could face financial penalties for not providing adequate access to information, city offices and other locations “you identify as necessary to comply with these requests.” 

The city’s millage rate will remain unchanged after five years of annual reductions. St. Petersburg’s property tax base increased by 4.93% during the current fiscal year; however, that is less than half of the 10.43% spike seen in 2024.

DeSantis, much to the dismay of local leaders, has pushed to eliminate property taxes. Those revenues account for 73% of St. Petersburg’s general fund, and most of that money supports public safety. 

Some of that money also supports DEI-related initiatives and events, like the annual Dr. Martin Luther King Jr. and St. Pete Pride parades. Those efforts are sure to come under state scrutiny. 

While the state cannot force municipal policy or budget changes, it can withhold critical funding. DeSantis also has a history of removing local officials who do not comply with his directives. 

The letter lists roughly 90 specific requests, about 10 more than the county received. City officials must provide “access to the information and documents described, access to the data systems containing such information and documents and individuals with appropriate expertise to describe the city’s activities and decisions.” 

Specific requests encompass procurement and contracting, personnel compensation, management practices (city-owned properties), utilities, DEI, the “Green New Deal,” grants and financial management, transportation and homeless services. DOGE also named the city’s chief equity officer, Americans with Disabilities Act (ADA) and diversity coordinator, the supplier diversity manager and a former director of sustainability and resilience as local officials the agency plans to interview. 

DOGE did not request access to county personnel by name or for information regarding homeless services. “We will address any questions that may arise from the state’s process and move forward with clarity and accountability in the best interest of the residents of St. Petersburg,” Welch stated.