Franklin County leaders approve cross‑department review after administrator warns of $1.2M shortfall

Franklin County Administrator Mr. Danzel told the Board of County Commissioners on May 21 that the county has recorded two consecutive months of sales tax revenue about 15% below projections and faces an estimated $1.2 million shortfall for 2025 and about $1.0 million in 2026. He asked commissioners to approve forming cross‑department teams to perform a prioritized expenditure review and to implement short‑term mitigation measures including the hiring freeze already adopted.

Danzel said the county will pursue a suite of actions intended to reduce spending with minimal impact to current employees and essential services. Recommendations include a thorough expenditure review using staff from the auditor’s office and accounting, evaluating nonessential spending and opportunities for consolidation, pursuing revenue enhancements (grants and partnerships), a targeted hiring freeze with an exemptions process, phased delays of noncritical capital projects, quarterly budget reviews and adoption of formal financial policies.

The administrator outlined a near‑term timeline: a three‑week staffing needs assessment; formation of a capital project review team within about three weeks; a proposed financial‑policy package in roughly one month; and a two‑month review of contracts and interlocal agreements. He said delaying nonessential capital projects could save an estimated $1 million to $3 million over the next two years. Danzel also warned of risks: employee burnout from staffing constraints, long‑term inflation or infrastructure deterioration from deferred projects, and potential state mandates that could create new obligations.

Commissioners voiced support and gave consensus to move forward quickly. One commissioner said the hiring freeze adopted last week was the right first step and that acting now will keep the county “on level ground.” Another commissioner noted stress on local farmers and the economy and endorsed acting “full steam ahead.” Danzel thanked a team of staff—including the auditor’s office, accounting staff and county engineers—for contributing to the plan and said he would notify the participants.

The administrator requested permission to form the cross‑department teams and begin the implementation work; the board gave consensus. No formal roll‑call vote was recorded during the presentation; commissioners expressed unanimous verbal support.

What happens next: staff will convene the proposed teams, complete the staffing needs assessment and capital‑project review on the timeline Danzel outlined, and return to commissioners as the work produces findings and recommended actions for potential inclusion in the preliminary budget hearings.