A conflict over nearly $500,000 in tax contributions has escalated tensions between the Escambia County Commission and the Escambia Children’s Trust, with both sides claiming to act in the best interest of local children but disagreeing sharply on how the money should be spent.
At the center of the conflict is whether the Children’s Trust should be exempt from paying tax increment financing, or TIF, to the county’s Community Redevelopment Agencies. The funds, collected from designated CRA districts, are intended to support revitalization efforts in blighted areas, typically through infrastructure upgrades like streetlights and surveillance cameras.
The county argues that these improvements benefit the same communities the Trust aims to serve. The Trust, however, contends the money should go directly to youth-focused programs, including education, health, and job training.
“What we are actually asking from the Trust is to consider entering into an interlocal agreement that would simply allow us to ensure these monies are going towards their intended purpose… to fund programs and services that would improve the lives and wellbeing of children,” said Dr. Rex Northup, chair of the Children’s Trust.
During last week’s commission meeting, Board Chair Mike Kohler led the pushback. He voiced skepticism over the Trust’s spending and called for the funds to be paid directly to the CRAs.
“Our lawyers met with you, and we agreed, at least on our side, that we clearly have state statute on our side,” Kohler said. “We want 1.9% to help the lowest income communities in Escambia County, and you continue to want to push back and fight us. I don’t understand this.”
Commissioner Lumon May, who also serves on the Children’s Trust board, appealed for a collaborative solution.
“Let’s do what’s right for children, not what’s right for the Trust board or the County board,” May said.
The board remains split. Commissioner Steve Stroberger sided with Kohler, favoring strict enforcement of the Trust’s TIF obligations. Commissioner Ashlee Hofberger took a more flexible stance, suggesting that infrastructure needs could instead be funded through the Local Option Sales Tax, preserving the Trust’s funds for children’s programming.
Children’s Trust calls for cooperation
Trust Executive Director Lindsey Cannon and other leaders reiterated their commitment to partnering with the county, rather than pursuing legal or political battles. They stressed that their voter-approved mission is to improve outcomes for children and youth, particularly in areas like health, education, and safety. Cannon said youth-employment programs are aligned with that mission.
Legal questions loom
Escambia County has already collected $443,000 in TIF payments from the Trust and says another $690,000 is owed. The legal question is whether the Trust, as a taxing authority itself, is obligated to pay into the CRA system.
While the City of Pensacola is also levying TIF from the Trust, it has opted for a cooperative approach, partnering on early-childhood initiatives instead of diverting funds to infrastructure.
Created to revitalize distressed neighborhoods, Florida’s CRAs use TIF to reinvest property tax growth into the same communities, from lighting and parks to affordable housing and public safety. However, they’ve drawn increasing scrutiny at the state level. Some lawmakers have called for phasing out CRAs or halting the creation of new ones, citing concerns over transparency and misuse of funds.
Proponents argue CRAs remain effective if properly managed. But if CRAs are eventually eliminated, the question of the Trust’s obligations could become irrelevant.
Looking Ahead
Trust attorney Meredith Bush signaled a willingness to negotiate.
“We believe it’s a win-win for the county and the Trust to enter into an interlocal” (agreement), Bush said.
A final decision was deferred until July 10.
For now, the fate of nearly half a million dollars, and the future of children’s programming in Escambia County, remains uncertain.
