Budget Committee discusses $800K shortfall and employee pay concerns for next year

Henry County Council members faced a significant budgetary challenge during the recent Budget Workshop held on July 28, 2025, revealing a projected shortfall exceeding $800,000. The discussion highlighted concerns over the county's financial health, particularly regarding employee salaries and the implications of a 27-pay schedule.

Baker Tilly's report indicated that the county's budget is not only over budget but also $300,000 short of the necessary funds to cover expenses. Council members expressed cautious optimism, noting that most departments are operating within expected spending limits, with many at around 45-50% of their budgets halfway through the year. However, the maintenance and repair department, which accounts for a significant portion of salaries, is lagging at just 37% spent.

A key point of contention arose around the potential hiring of new employees. Concerns were raised that if all five proposed positions were filled, the county could face a deficit exceeding $1 million, given that the fund currently brings in $2 million but has expenditures projected at $3 million. This situation has prompted discussions about the sustainability of raises and the need for careful budgeting to avoid future layoffs.

The council also debated the impact of health insurance contributions on the budget, which have increased significantly over the past few years. The rising costs of employee compensation, including health benefits, have been a major factor in the budget's growth, with some members suggesting that adjustments may be necessary to balance the budget without compromising employee welfare.

As the council prepares to finalize the budget, the discussions underscore the delicate balance between maintaining employee satisfaction through raises and ensuring fiscal responsibility. The council's next steps will involve careful consideration of these factors as they aim to present a viable budget to the state, which has the authority to mandate cuts if the proposed budget exceeds available funds.