Board adopts budget amendment, agrees to hiring freeze for nonessential positions amid rising costs

The Holmes County Board approved Budget Amendment No. 2 and a temporary hiring freeze on nonessential positions during Tuesday's meeting as staff warned of multiple cost pressures for the coming fiscal year.

County finance staff told the board they had to use contingency funds after the county's Medicaid-sharing payment unexpectedly increased by about $7,000 per month, requiring roughly $15,000 to cover the remainder of the current fiscal year. Staff also said the county was already $8,000 over budget for Baker Act involuntary-treatment costs and that another $25,000 could be required for extended stays and state hospital placement delays; that would bring the contingency need to around $33,000 for those items.

Other budget pressures cited included an 8.79% projected increase in electric utility costs, a likely 10% rise in health insurance expenses and a 12' 14% increase in liability and casualty insurance premiums. County staff said the legislature's recent changes to sales tax exemptions and other state decisions will further reduce local revenue streams.

The board approved the amendment (voice votes recorded) to cover grant revenue adjustments, extra EMS repair/maintenance revenue and to move funds between line items; staff said the amendment would rely in part on contingency for the unexpected Medicaid and Baker Act costs.

In separate action, commissioners approved a temporary hiring freeze covering nonessential positions while permitting the filling of essential roles and two advertised positions that were already in process. Commissioners and department heads clarified that temporary or internally transferred positions already in process would be handled as needed and that compensation for employees who take on extra duties (in at least one cited case) would be addressed.

Debris payments: County emergency management staff recommended and the board approved a coordinated recommendation to pay half of invoices to the debris monitor and debris hauler now, to reimburse the sheriff's office in full and to hold back remaining funds until the state advances the second tranche of FEMA/state disaster reimbursement (the county received a 50% advance). Staff said they expect the state follow-up in two to three weeks.

Ending: County staff will return with more detailed FY26 projections; commissioners scheduled budget committee work and asked staff to monitor lines that rely on contingency in case midyear adjustments are needed.