Albany County treasurer warns of $1.8 million general‑fund shortfall; commissioners weigh reserves and one‑time funds

Albany County Treasurer Tracy told the Board of Commissioners at a budget work session that county expenditures are projected at $18,554,000 while budgeted revenues total $16,000,707, leaving an estimated general‑fund shortfall of about $1,800,000.

The treasurer said the county has several reserve accounts and special funds that can be used to smooth cash flow or respond to emergencies, but she urged caution in relying on recent wind‑generation receipts. Tracy noted that wind‑related property and generation tax receipts materially improved the county’s near‑term position this year but said those dollars are not guaranteed long‑term and could decline as equipment depreciates or policy changes. She also flagged uncertainty about federal PILT (payments in lieu of taxes) and potential changes in state or federal allocations.

Commissioners reviewed the county’s fund balances and reserves in the same meeting. The treasurer said the county’s contingency and reserve accounts collectively provide several months of operating capacity but that much of the money is invested rather than immediately liquid cash. She reported the county’s “county building contingency” and other special reserves; the salary stabilization reserve was cited as roughly $2.5 million. The treasurer also said the county road fund, equipment reserve and other restricted funds hold separate balances that are not free for general‑fund operations.

Tracy and commissioners discussed major revenue and expenditure line items that affect the shortfall. Among the items mentioned during the session were:

- Direct aid (state “direct aid” hardship funding) was estimated in the treasurer’s worksheet at about $2,300,000; that figure was used in revenue projections but remains subject to legislative and administrative changes. - County expenditures in the general fund are shown in the worksheet at $18.55 million; budgeted general‑fund revenues were shown at roughly $16.00 million, producing the $1.8 million gap shown at the meeting. - The treasurer noted one‑time federal or state programs (for example, a possible Secure Rural Schools reauthorization and other federal forest or revenue programs) could change the outlook but are not certain.

The board also reviewed dozens of special funds and dedicated accounts during the session: impact assistance tied to industrial siting, the employee health benefits account (self‑insurance), vehicle replacement funds, abandoned‑vehicle and jail endowment accounts, and specific‑purpose sales‑tax balances created by prior ballot measures. The treasurer said several special‑purpose accounts still hold small residual balances that date from older bond or ballot programs and that staff will propose ways to reconcile or spend those small balances where statutes and ballot language permit.

Commissioners asked clarifying questions about uses and reporting for special funds, whether certain recurring obligations (for example, public defender rent, juvenile court appointed counsel, or victim‑witness program county matches) would continue to require general‑fund support, and whether the county should shift some recurring IT and licensing costs into an IT fund so they are easier to track. The treasurer said the county’s move to a new finance/accounting system should make fund‑level tracking and reporting easier next year.

The board scheduled follow‑up work to finalize numbers and asked staff to prepare updated cash‑on‑hand calculations and options for closing the gap before the county’s public hearing on the proposed budget. Commissioners and staff agreed to meet again during the budget work sessions and to present a revised, consolidated set of options for the board to consider before formally advertising the proposed budget.