Council reallocates levy and LIT funds, adds $1 million for paving and moves jail medical contract to jail LIT

The Monroe County Council approved a package of budget reallocations designed to lower the 2026 general fund shortfall by shifting certain recurring and one‑time expenses into levy‑controlled local income tax (LIT) funds.

Key moves: Councilors and staff combined a series of transfers and new LIT lines that, together, moved multiple supply and services lines into a newly staffed economic development LIT and the correctional LIT. The council added two paving‑related lines that total $1,000,000 (a $489,743 supplies line and a $510,257 contractual/services line) intended to fund bituminous repairs and to provide matching funds for a competitive Community Crossings grant application. The council also removed the jail medical services line from the general fund and placed it in the correctional LIT.

Why it matters: Auditor staff and several councilors said the package would materially reduce the county general fund deficit and buy time while the county adjusts to state legislative changes that affect property tax and LIT structures. Several councilors and department heads cautioned that moving recurring jail medical costs to an LIT fund requires clarity about long‑term funding and statutory uses; the county attorney and auditor reviewed the statute and agreed operating expenses for the jail can be covered by the correctional LIT.

Details and votes: The initial motion to move supply lines, training/travel and a jail medical services line into an economic development LIT produced an economic development LIT total of $5,342,996 as proposed by councilors and staff. Councilors later amended the package to add the two paving lines (bituminous supplies and contractual) totaling $1,000,000; the amendments passed. The council then moved the jail medical services contract (shown in the proposal at $1,675,277) from the general fund to the correctional LIT after legal review confirmed the expense fits operating costs the LIT can cover. Council also moved three captain positions and other staffing lines from county general into the correctional LIT where those positions will be funded in the lit budget.

What staff and officials said: Lisa Ridge (Highway) and the sheriff’s office leadership said they would cooperate with the council’s plan; the sheriff’s office confirmed that medical care for people incarcerated is a statutory obligation and that moving the contract between funds must preserve access to care. Auditor staff displayed updated 4(b) worksheets and said the correctional LIT was expected to end 2026 with a multi‑million dollar balance before the changes.

Next steps: The council scheduled final adoption for Oct. 14 when staff will present updated appropriation language. Councilors noted the approach is not ideal; several called it a pragmatic step to avoid deeper cuts or staff layoffs while the county waits for clarity on state changes to revenue structure.

Ending note: The council used LIT reallocation and a paving supplement to reduce the immediate pressure on the general fund; staff will return with revised appropriation language and updated revenue projections for final adoption.