Scott County reports $8.2 million positive fund balance for 2024; 2025 outlook uncertain amid state budget pressures

County finance staff reported on May 6 that Scott County ended fiscal year 2024 with an $8.2 million favorable variance, driven largely by higher investment income and vacancy savings, and said the county is monitoring state and federal budget uncertainty that could affect 2025 operations.

“ We ended the financial year to a positive $8,200,000,” a county finance presenter identified in the record as Mr. Jones told commissioners. He attributed much of the gain to higher investment earnings, use of ARPA-funded positions that were not fully filled in 2024 (creating vacancy savings), and favorable results in planning and resource management tied to restricted grants and special assessments.

Mr. Jones reported that Health and Human Services posted an unfavorable variance of about $382,000 in 2024, partly tied to timing of state case-management funding and reduced usage of the county JAF facility after an increase in its per-diem rate. The County Attorney’s Office showed an unfavorable variance near $325,000, tied to lower state fees and greater use of dedicated funds for in‑school programming. Transportation services saw a favorable variance largely reflecting a mild winter and lower sand/salt and overtime costs; the sheriff’s office finished about $154,000 favorable, primarily because outside boarding revenue at the jail exceeded budget.

The county’s unassigned and assigned fund balance now totals about 37% of operating expenses, within the state auditor guideline range of 35%–50%. For 2025, Mr. Jones said short-term investment income remains elevated but flagged a projected $6 billion state deficit for the 2028–29 biennium and continuing federal budget uncertainty as risks.

County steps: Staff described three near-term actions to manage potential downside risk — (1) a vacancy-review board to hold positions when appropriate, (2) re-evaluation and possible delay of capital projects, and (3) division-level reviews of discretionary spending.

Projected figures and context: Mr. Jones also reported the county is holding most investments short-term (91% in maturities of 0–2 years) and that 2024’s investment environment contributed materially to earnings. Commissioners asked for additional storm-level plowing cost data; staff reported an average cost per plow event of about $56,000 with variation across storms.

Discussion vs. decision: Commissioners received the financial update; no budget amendments were adopted at the meeting.

Next steps: Staff will continue first-quarter monitoring, bring vacancy-review outcomes to the board, and report any state or federal actions that materially affect county revenues or services.