County Commissioners got their first look Wednesday at the proposed 2024-25 budget, which in traditional fashion, shows a substantial general fund deficit based on underestimated revenue and overestimated expenses.
County Budget Director Eric Buchanan was more concerned about the proposed Highway Department budget with additional spending requestd in excess of $1 million. The proposed budget also ends with a negative fund balance, which is not permissible by the Tennessee Comptroller’s office.
The county commission’s Budget Committee started its annual Budget Hearings a month earlier than usual Wednesday in hopes of having a budget approved and sent to the Comptroller’s office before the 2024-25 fiscal year begins July 1.
The first draft of the 2024-25 county general fund presented to the Budget Committee Wednesday showed a $2.211 million deficit based on a 93% property tax collection rate. But, that initial budget deficit is traditionally not a real figure.
Generally at the end of each fiscal year when the actual numbers are tallied those deficits have been nearly erased.
For example, last year the commission approved a 2023-24 general fund budget with a $2.4 million deficit based on a 93% property tax collection rate.
Buchanan told the commission Wednesday, however, that the county is actually on pace to end the 2023-24 fiscal year only $124,000 in the red.
Similarly the 2022-23 budget was approved $1.6 million in the red, but by the time the year ended the county had only used $178,000 of the general fund’s reserve to balance the 2022-23 budget.
The first draft of the general fund budget shows an estimated unassigned fund balance of $10,760,906 at the end of the 2024-25 fiscal year.
Following the budget presentations Wednesday morning county office holders and department heads presented their individual budgets to the committee.
Visit online version of this article at www.therogersvillerewview.com to see complete videos of Wednesday’s budget hearings.
Highway Department
Buchanan said the overall financial health of the Highway Department fund is not good and is not sustainable, and the proposed 2024-25 Highway Budget as it stands would be rejected by the state Comptroller’s office.
“Sometimes we project a budget deficit, but when the year cleans up we don’t actually dip into our fund balance,” Buchanan said. “That is not true with this fund.”
The 2023-24 Highway budget was projected $1.8 million in the red. As of now its projected to end the current fiscal year $1.6 million in the red.
“This is not sustainable,” Buchanan said. “The estimated expenditures for this year are at $8.8 million, which gives us a shortfall of basically $2.8 million. That is not allowable.”
Buchanan notes that based on those figures the Highway Department would end with a $280,000 negative fund balance, which is not permissible by the Comptroller’s office.
“This budget cannot be sent to the Comptroller’s office,” Buchanan said. “This is not a valid budget. This would greatly prohibit him having the ability to work on any roads or bridges because a lot of that is reimbursement. If you can’t front the money in cash while you’re waiting for the reimbursement to come in, it creates a lot of problems.”
Buchanan added, “I don’t know how you want to address that, but it’s going to have to be addressed again. You’ll see there is a million dollars in increased requested funding. That’s between you and the road superintendent. What kind of road department do you want to have? What is your vision? What is his vision? But if your vision is his vision, it needs funding. Funding has to increase or expenditures have to decrease.”
Highway Superintendent Danny Jones was scheduled to present his 2024-25 budget to the Budget Committee Thursday morning. Budget hearings were expected to continue Thursday, and possibly Friday if needed.
At the end of this week’s initial budget hearings a second set of hearings will be scheduled for the committee to review a second draft of the various county budgets and begin making decisions.
Check the Rogersville Review Facebook page and website for budget hearing updates.
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