Budget Committee whittles proposed county tax hike to slightly under 24 cents

The Hawkins County Commission’s Budget Committee whittled some spending from the proposed 2024-25 budget Monday, decreasing what started as a proposed 26.67 cent property tax to just under 24 cents.

Some committee members wanted to see that tax hike figure reduced to 20 cents, although at the end of the day-long budget hearing they were unable to find cuts substantial enough to meet that goal.

The committee voted 6-0 to forward the revised budget with new cuts to the full commission, which meets again July 22. But, the proposed property tax increase, which tentatively sits around 24 cents, was approved 4-2, with commissioners Danny Alvis and John Gibson opposed.

Gibson said he was shooting for the 20 cent goal.

Originally the commission was presented with a proposed budget that included a 34.67 cent property tax increase.

On June 24 the Budget Committee met prior to the county commission and cut 8 cents which would have been used to help pay for a new Goshen Valley Bridge.

Later that evening, however budget approval was tabled to give the Budget Committee another shot at making cuts.

During Monday’s Budget Committee meeting the committee agreed to reduce new funding for the Sheriff’s Office by $246,000, which amounts to approximately 2.61 cents on the property tax rate.

Originally Sheriff Ronnie Lawson requested $1.7 million to increase employee pay. Lawson noted Monday that he currently has 11 officer vacancies, and low pay compared to other police agencies in the region is the main reason he has lost employees and been unable to fill those position.

The compromise recommended Monday gives the sheriff’ the ability to increase pay per employee by $5 per hour, plus their regular step increases on the salary scale.

The Budget Committee also voted Monday to cut $73,500 by removing 10 employees from the 2,080 hour pay scale to the 1,820 hour pay scale.

The committee also voted to cut travel and office supplies by 15% in offices that are not restricted by maintenance of effort laws. County budget director Eric Buchanan said he would calculate that dollar figure and plug it into the updated budget proposal, which will be presented to the Budget Committee when it meets again on July 15.

The committee also removed approximately $19,500 for an Emergency Management Agency command center trailer from a general fund expenditure to a capital outlay line item which doesn’t affect the tax rate.

Buchanan noted that calculations must be made before he could tell the Budget Committee exactly how much spending was cut Monday, and the exact affect that will have on the proposed tax increase.

Buchanan estimated, however, that based on actions taken June 24 and Monday the new proposed property tax increase currently stands right at 24 cents, not including the 15 percent travel/office supply cuts.

That figure is tentative, however. The Committee's motion sets the amount that the proposed 2024-25 budget can be "in the red" at $2.5 million. That means the final proposed tax rate presented to the committee on July 15 will have to achieve that amount.

Typically county budgets have expenditures overestimated and revenue underestimated, and when the final figures come in the original deficit is erased.

For example, the commission approved a $2.4 million deficit in 2023-24, but Buchanan estimates that the fiscal year will actually end $140,000 in the black. Buchanan noted however, that a $2.5 million estimated deficit is the most he would recommend without a risk of actually using savings to balance the budget.

Some cuts that were proposed Monday but failed included eliminating a new full time position for the county mayor’s office that would be crossed trained in all jobs; and a new full time assistant EMA director. The positions were being partly funded by cutting existing part time allocations. That cut, which failed by a vote of 3-3 was estimated to save approximately $40,000.

Another proposed cut that failed was reducing the county employee COLA (cost of living adjustment) from 5% to 3.2%, which is the Social Security COLA amount. That cut, which failed by a vote of 3-3, would have saved $80,000.