Kissimmee city leaders are extending a hiring freeze first put in place last October and are wrestling over how much of a raise they can afford to give employees, all while bracing for a November ballot measure that could blow a hole in next year's budget. The freeze will continue through the fiscal year that begins October 1, 2026, with exceptions only for critical positions, according to a city spokesperson.
The pressure point is Florida's Amendment 3, which goes before voters statewide in November and would expand the state's property tax exemption for primary residences, according to Orlando Weekly. State economists estimate the measure would cost local governments roughly $5 billion collectively in its first year and $12 billion in recurring funds every year after that, per the same report. Roughly 30 percent of Kissimmee's general fund comes from property taxes, so city officials say the exposure is real. Kissimmee Budget Director Mike Steigerwald said Amendment 3 would be a major hit to the city's budget if approved, warning that the city could face reduced funding for public safety, parks, libraries, infrastructure and public hospitals.
A Region-Wide Scramble Before the Vote
Kissimmee is not moving alone. Winter Springs, Apopka and Orlando have each rolled out hiring freezes of their own amid the same budget uncertainty, the Orlando Weekly report notes. Winter Springs City Manager Kevin Sweet ordered a freeze across administrative, finance, public works and development services departments in August as the city prepares for an estimated $6.52 million revenue drop if the amendment passes, according to Oviedo Community News. Apopka Mayor Nick Nesta similarly announced a temporary pause on filling most vacant city positions through October 1, 2026, as officials re-evaluate departmental structures amid rising capital project costs and state tax reform uncertainty, per The Apopka Chief.
Orlando, for its part, created a dedicated Property Tax Reform Stabilization Fund out of fiscal year 2025 surplus dollars, buffering against a projected $30 million to $35 million loss in fiscal year 2028 if Amendment 3 passes, according to a report from Central Florida Public Media. Statewide, Florida TaxWatch and the state Office of Economic and Demographic Research project the amendment would strip $4.93 billion from local government property tax revenues in its first fiscal year alone and $45.84 billion cumulatively over five years, per the Florida Property Tax Resource Center. Florida Attorney General James Uthmeier released a revised ballot summary for the measure in August after a Leon County Circuit Court ruled the original description misleading.
Debating How Big a Raise the City Can Afford
Inside Kissimmee's own budget talks, commissioners are weighing whether a 3 percent raise for city employees is enough to support staff retention. Several commissioners raised concerns that a 3 percent bump would not meaningfully increase employee paychecks, according to the Orlando Weekly account. Kissimmee police, who are represented by a union and can negotiate collectively with the city, will likely receive a higher raise than 3 percent, Steigerwald said.
Commissioner Angela Eady proposed a one-time payout instead of a flat 3 percent salary raise, though officials cautioned that one-time payouts could cause wage compression issues down the line — a problem Kissimmee says it experienced significantly during the Great Recession of 2008. Mayor Jackie Espinosa asked city staff to conduct further analysis of the wage issue before the commission settles on a final number. Steigerwald had suggested a 3 percent raise plus a one-time bonus equivalent to an additional percentage point as a possible middle ground.
Travel Cuts and a Budget Built on Uncertainty
City leaders also discussed limiting funding for out-of-state travel as part of the belt-tightening. Commissioner Janette Martinez said any out-of-state travel should be evaluated by the commission for its actual benefit to the city. Kissimmee is also citing broader economic pressures, including tariffs, as it reevaluates long-term plans for additional staff positions and works to keep spending within available revenue.
The city approved a $310.3 million budget for the current fiscal year in September 2025, holding its property tax millage rate at 4.6253 mills for the 17th consecutive year and generating about $31.1 million in property tax revenue, according to Positively Osceola. For 2026-27, under the theme Propel Kissimmee, the city has proposed a $322 million budget. Officials also point to pension and healthcare cost increases of 20 percent and 13 percent, respectively, as added strain heading into a year already clouded by the Amendment 3 vote.
Governance Turmoil in the Background
The fiscal squeeze arrives as Kissimmee city government works through its own internal turbulence. Former City Attorney Olga Sanchez de Fuentes filed a wrongful termination lawsuit against the city in July after her February dismissal in a 3-1 commission vote led by Mayor Espinosa over alleged $6.2 million in legal department budget overages, according to the Osceola News-Gazette. Separately, a court-appointed special prosecutor found probable cause in August on three ethics counts against Espinosa involving federal COVID-19 relief grants awarded to her family's businesses, though a motion for an impeachment trial failed on a 2-2 vote.
Kissimmee's caution echoes similar moves already reported elsewhere in Central Florida. Oviedo has weighed cutting Oktoberfest and 70 jobs, while Winter Garden built an online tool projecting a $5.2 million first-year budget gap. For now, Kissimmee says it plans to keep monitoring economic conditions and move the city forward while keeping its budget within available revenue streams, whatever November's vote brings.
