St. Petersburg officials are pointing to a recently completed, independent audit that counters claims from a state-backed DOGE review that alleges that the city engaged in excessive and misaligned spending.
The dispute dates back to August 2025, when the Florida Department of Government Efficiency (DOGE) began examining the city’s finances. The agency later released a report stating that St. Petersburg’s general fund spending had increased by about 66% since 2016, outpacing population growth, while property tax revenues more than doubled during that period.
The report casts a wide net, labeling spending on climate initiatives, community grants and diversity programs as “ideological” — and comes as the state pushes aggressive penalties, including removal from office, for local officials who support them.
A 2025 DOGE review zeroed in on diversity, equity and inclusion spending, pointing to salaries like a $219,000 chief equity officer, an $87,000 LGBTQ coordinator, a $102,000 cultural affairs director and a $123,000 community justice liaison. It also flagged roughly $949,000 for nine employees in the city’s Office of Supplier Diversity, along with smaller outside grants and about $100,000 tied to Pride events.
But the city’s independent audit reached a starkly different conclusion: no fraud, no legal violations and no significant financial management issues. Mayor Ken Welch had pushed back, calling the DOGE effort “not a true audit,” contrasting it with the city’s formal financial review conducted under established accounting standards (Welch himself is a former accountant).
That review, covering fiscal year 2025, has since been completed. The audit, conducted by independent certified public accountants, found that the city’s financial statements were fairly presented in accordance with generally accepted accounting principles. Auditors reported no fraud, no violations of law and no material weaknesses or significant deficiencies in internal controls. They also found no inappropriate accounting practices or undisclosed related-party transactions.
The report shows that St. Petersburg recorded more than $1 billion in total revenues in fiscal year 2025 and approximately $921 million in expenses. The city’s net position reached about $1.68 billion, an increase of roughly $83 million from the previous year. Total assets exceeded $3.25 billion.
At the same time, the audit reflects an increase in spending that aligns with trends cited in the DOGE report. Governmental expenses rose to about $601 million in 2025, representing an increase of roughly 20% from the prior year.
According to the audit, a significant portion of that increase was driven by hurricane-related costs. The city reported approximately $92.9 million in debris removal and storm recovery expenses in the wake of Hurricanes Helene and Milton. Those costs were partially offset by $15 million in insurance proceeds and additional federal reimbursements related to disaster recovery.
The audit also outlines how the city allocates its spending. Salaries and benefits account for about 43% of total expenditures, with public safety among the largest expense categories. In a previous interview, Welch said about 98% of property tax revenue is directed toward police and fire services.
Auditors identified one snafu during their review. Approximately $1.5 million in expenditures were not recorded in the correct fiscal period, resulting in an understatement of certain liabilities and expenses. The finding was classified as a timing error rather than misuse of funds, giving Welch the clear.
The DOGE report from 2025 does not allege fraud or illegal activity, but the scale and direction of city spending. The audit evaluates whether financial reporting and controls meet required standards and found no significant deficiencies.
The differing conclusions reflect separate approaches to reviewing municipal finances. The DOGE report assesses spending trends and priorities, while the audit examines compliance, accuracy and internal controls.
This content provided in partnership with StPeteCatalyst.com
