On June 9, 2025, the Florida Legislature approved the state budget for 2025–2026 that includes a last-minute  provision that could have a big impact on local governments, including special districts. The budget includes a section that gives the Governor’s Office of Policy and Budget (known as “OPB”) broad authority to review how local governments are spending their money.

The state budget authorizes the OPB to review local government expenditures from the most recent two fiscal years in order to identify three things: 1) whether local resources have been used to support diversity, equity, and inclusion (DEI) efforts that may violate state law; 2) whether there is any sign of waste, fraud, or mismanagement; and 3) whether there are overlapping or redundant government functions that could be streamlined.

To conduct this review, OPB has been given the authority to request access to a wide range of district records, including records related to personnel and overhead costs, contracts, grants and other expenditures.  It may also access financial records including audits, budgets, millage reports, and other financial reports.

Local governments that received any state funding in the current or previous fiscal year may be subject to heightened review.  Upon receipt of a request from the OPB, local governments that have received such funding must provide access to staff, offices (with appropriate security considerations), and data systems within seven (7) business days. Failure to comply could lead to a fine of $1,000 per day. While the law protects confidential records from disclosure, all other requested records must be made available, and any such request is legally treated as a public records request under Florida law.

OPB is required to submit a report by January 13, 2026, summarizing its findings and highlighting any problems it uncovers. That report will go to the Governor, key legislative leaders, and the state’s Chief Financial Officer. The OPB may also refer any signs of serious financial mismanagement to the Legislative Auditing Committee. Although this provision expires in July 2026, the reviews and consequences may play out over the next year.

This new law comes at the same time as Florida’s broader push to overhaul and monitor government spending, known as the DOGE initiative. Launched by Governor DeSantis earlier this year, Florida DOGE, short for the Department of Government Efficiency, is part of a statewide effort to reduce bureaucracy and eliminate waste. While the initiative has generated headlines due to its ties to national politics and its use of artificial intelligence tools to flag potential issues, the day-to-day effects will be most visible at the local level. Already, several counties, including Pinellas, Hillsborough, Manatee, and Sarasota, have joined the effort and created their own local DOGE programs to coordinate with the state. Special districts should be prepared for inquiries not just from the Governor’s Office, but potentially from these county-level programs as well.

Although the language of the budget provision is broad, the intent is clear: the state is signaling that it plans to take a more hands-on role in evaluating how local taxpayer dollars are spent. If your special district receives a request from OPB or DOGE, it is important to take it seriously and respond promptly. Delays could result in fines, and a failure to provide full cooperation may raise red flags.

We recommend that special districts begin preparing now by identifying staff who can serve as liaisons, organizing financial and administrative records, and reviewing any spending or programs that might relate to DEI or duplication of services. If you have any questions about these new requirements or about how to respond to requests from OPB, please contact jrustin@llw-law.com, sbehn@llw-law.com, or clyon@llw-law.com.