Strafford County delegation backs $1.44 million budget supplement, OKs short-term borrowing to cover cash shortfalls

The Strafford County legislative delegation executive committee on Sept. 30 recommended a supplemental appropriation of $1,442,531 to the county's 2025 budget and authorized short-term borrowing to cover timing and revenue shortfalls tied to that expense and other delayed revenues.

The recommendation followed a presentation by County Commissioner Nivalares and staff explaining that a large, unbudgeted inmate hospital bill and changes in federal payments had left the county without a fund balance to absorb the costs. "We have no fund balance at all," Commissioner Nivalares told the committee, summarizing the county's cash position.

The delegation approved the recommendation by roll call and also approved (by roll call) a related increase in the amount to be raised by taxes, a tax-anticipation note (to borrow up to $1,442,531) and revenue-anticipation borrowing up to $6,962,000 to smooth county cash flow while expected revenues are collected.

Why it matters: The supplemental appropriation addresses bills the county says it must pay now; the borrowing measures temporarily shift cash obligations into short-term debt until anticipated revenues arrive. Committee members repeatedly pressed county officials about whether budget reductions or departmental changes could reduce future needs.

Details and causes County staff told the delegation that the largest single driver of the supplemental request was an inmate medical bill that, prior to insurance adjustments and other recoveries, totaled nearly $2 million. County staff said hospitals and insurers have covered much of the amount but that roughly $300,000 remained contested. "We're still fighting the hospital on the inmate bill," a county administrator said during the presentation.

Officials also said a federal change in the distribution of PSP (proportionate share) funds produced a roughly $390,000 revenue shortfall the county could not have anticipated during the annual budget process. County leaders emphasized that those two items left them without a fund balance to offset the unexpected costs.

County responses and operational moves Commissioner Nivalares and staff told members they had already cut positions to reduce costs; staff said eliminating one full-time community corrections position and reducing other staffing in the nursing home and community corrections would produce annual savings once fully in effect. The county estimated the full-year effect of the eliminated community corrections post at roughly $200,000.

Representative Bailey criticized the size of the request and asked which cuts had already been made. "We're expecting the taxpayers to pony up another 1,400,000," Bailey said, and asked what had been cut to make the request as small as possible.

Representative Harrington pressed for stronger oversight of the sheriff's office and proposed (during discussion) an audit of salaries and a moratorium on overtime in that department. "There needs to be an audit at the Sheriff's department... There should be no more overtime," Harrington said. The motion to audit was discussed but not taken on the floor as part of the appropriation vote.

The jail superintendent described operational pressures at the house of correction, including population, staffing and safety issues. "We have a capacity of 495. This morning, I had 336 people," the superintendent said, and laid out minimum staffing levels per shift (14 on first, 15 on second, 13 on third). He also described difficult working conditions faced by corrections officers and said the county has been pursuing higher reimbursement rates for boarding federal and out-of-county detainees.

Votes at a glance - Recommendation: Executive committee recommends a supplemental appropriation to the Strafford County 2025 budget of $1,442,531 (motioned by Representative Safra; seconded by Representative Wall). Outcome: approved by roll call. (Roll-call votes were recorded during the meeting.)

- Tax impact: The committee approved raising the amount to be raised by taxes for 2025 from $41,995,908 to $43,438,439, an increase of $1,442,531 (motioned by Representative Southworth; seconded by Representative Howard). Outcome: approved by roll call.

- Tax-anticipation borrowing: Motion to authorize tax-anticipation borrowing up to $1,442,531 (motioned by Representative Howard; seconded by Representative Forgan). Outcome: approved by roll call. Recorded roll-call votes included: Bailey (No); Burnham (No); DeRoy (No); Harrington (No); Oregon (Yes); Howard (Yes); Kaczynski (No); Lamontagne/Glavontyne (Yes); Malone (Yes); Potenza (No); Schmidt (Yes); Southworth (Yes); Wall (Yes); Howland (Yes). Yes: 8; No: 6.

- Revenue-anticipation borrowing: Motion to authorize revenue-anticipation borrowing up to $6,962,000 to bridge delayed state and federal receipts (motion and second on the floor). Outcome: approved by roll call. Recorded roll-call votes included: Bailey (No); Burnham (No); DeRoy (No); Harrington (Yes); Oregon (Yes); Howard (Yes); Kaczynski (No); Lamontagne (Yes); Malone (Yes); Agenza/Penza (No); Smith (Yes); Southworth (Yes); Wall (Yes); Tallent/Tallon (Yes). Yes: 9; No: 5.

What officials said about alternatives Several representatives urged stricter near-term spending controls and more detailed follow-up from county departments. Members said they expected staff to provide a line-item accounting of where cuts had been made and where additional savings could be realized for the remainder of the fiscal year.

County staff said the borrowing would be short-term (two to three months in typical scenarios) and that the interest cost had been budgeted; staff warned that if major state or federal revenues were delayed further, the county would face more difficult choices.

Next steps The delegation's recommendations will be forwarded to the full delegation process for final action and the Department of Revenue Administration will set tax rates after the delegation's approvals. Committee members asked county staff to provide follow-up materials detailing line-item savings, the nursing-home staffing changes, jail reimbursement calculations, and a clearer estimate of household impacts by municipality.

Sources: meeting presentation and roll-call votes during the Sept. 30, 2025 Strafford County legislative delegation executive committee meeting.