Late Thursday, the City of Pensacola released new details pushing back on a state list of “wasteful spending,” saying the Saenger Theatre has returned more than $1 million to taxpayers in the past three years and that a new “Welcome to Pensacola” sign was paid for with earmarked state and federal dollars, not local property taxes.
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The clarification follows a social-media rollout by Gov. Ron DeSantis’ Department of Government Efficiency (DOGE) that flagged two city items: “$150,000 a year to a management company that brings drag shows to the city’s Seanger [sic] Theater,” and “$300,000 for an equity-focused strategic plan and residential ‘equity survey.’” In his post announcing the findings, DeSantis said, “Florida DOGE teams alongside @CFOIngoglia have been investigating cities and counties where taxpayers have raised concerns about wasteful spending. These audits have uncovered many irresponsible uses of taxpayer funds.”
City clarifies Saenger contract.
In its new statement, Pensacola said the $150,000 cited by DOGE is a long-standing annual operating advance, not a subsidy for any specific show. The city added that it received no formal inquiries on the Saenger during DOGE’s audit in August or its follow-ups in September, and that the claim was not raised directly with staff before appearing in the governor’s post. The advance, officials said, allows the theater to operate smoothly until event revenues come in.
“Instead of a taxpayer cost, we are proud to say that taxpayers have seen the theatre turn an operational profit to our city, returning more than $1 million to the city in just the past three years alone,” the city wrote. According to city figures, the venue produced $140,000 in FY 2022, $205,000 in FY 2023, $418,000 in FY 2024, and $252,000 in FY 2025, with an additional $75,000 expected by year’s end. A per-ticket fee has also generated nearly $500,000 for maintenance of the century-old facility. The theater is operated by Legends Global under a 21-year contract and hosts a mix of national tours and local nonprofit performances.
Earlier this year, a holiday drag revue scheduled for December prompted calls for cancellation and reached City Council. Members asked the city attorney about their options for a city-owned public venue. The attorney advised that canceling a contracted act based on its content could expose the city to breach-of-contract claims and potential First Amendment violations. Council took no action, and the show remained on the calendar.
Equity-related spending broken down.
The city also detailed the costs behind the $300,000 figure cited by DOGE. Officials said the “Equitable Development Values Survey” was “one small part of vast, public outreach efforts” on the Hollice T. Williams Stormwater Park and was conducted by a consultant under a $161,110 contract. The citywide Strive to Thrive: Pensacola 2035 plan, completed over 12 months with surveys, workshops, and focus groups, cost $132,000. The plan sets eight long-term goals and introduces a project-ranking framework that includes equity as one of several criteria, alongside feasibility, alignment with multiple objectives, and geographic balance.
The document notes that “Equitable” ranked among the top three priorities residents identified during the planning process, alongside “Livable” and “Healthy.” It defines equity as “an equitable place where every person has the freedom and comfort to explore who they want to be.”
Gateway sign funding detailed
Although Pensacola’s welcome sign was not included in the DOGE social media post, it was referenced by state officials during a press event in Jacksonville, where they cited it as an example of local overspending — claiming the city “paid almost $600,000 for a large, neat neon ‘Welcome to Pensacola’ sign.”
The city said the Florida Department of Transportation provided $470,000 specifically to replace an entrance feature removed during the Pensacola Bay Bridge project, while $185,000 came from federal relief funds.
“No local property taxes or any other city revenue streams were used in this project,” the statement said.
Wider context
DOGE’s Pensacola items appeared alongside findings from Jacksonville, Orlando, Pinellas, Gainesville, Hillsborough, and Broward. The initiative is part of DeSantis’ broader fiscal agenda, which includes a proposal to eliminate property taxes. State officials say the audits will help identify inefficiencies as Florida reconsiders how to fund local services. Supporters describe the reviews as necessary oversight; critics call them a partisan attempt to strip funding from local programs—particularly diversity, cultural and environmental initiatives—that conservatives oppose.
DOGE also reflects a growing trend toward state preemption, in which Florida lawmakers have curtailed local authority over housing, wages, and environmental rules. The model takes cues from a federal Department of Government Efficiency launched under President Trump and initially led by Elon Musk, which has faced legal challenges and questions about transparency.
What’s next? Pensacola officials said they will decide on any next steps after receiving formal communication from the state. For now, they plan to continue implementing the strategic plan as a budgeting guide while lawmakers prepare to debate property-tax proposals in the next legislative session.
