Scotland County confronts roughly $1.8 million FY25 shortfall; commissioners propose capital cuts and limited use of fund balance

Scotland County commissioners discussed a projected shortfall of roughly $1.8 million in the proposed fiscal year 2025 budget and outlined a package of capital reductions, targeted grants and a limited use of fund balance to close the gap.

County staff reported projected revenues of about $54.2 million and total expenditures near $56.0 million, producing the shortfall. Officials said unassigned fund balance at June 30 was about $7.0 million (roughly 16% of the budget under the figures presented) and that the county’s self-imposed minimum fund-balance target is 15% (the speaker described that as set by local policy/ordinance). Commissioners said a worst-case scenario could require up to $1 million from fund balance but that more likely the draw would be in the low hundreds of thousands of dollars if sales-tax or other revenues come in stronger than the conservative projection.

Why it matters: the board said it wants to avoid cuts to current employees or benefits while still balancing the books. Commissioners emphasized maintaining a 2% cost-of-living adjustment and existing retirement matches while trimming discrete capital spending and re-evaluating discretionary items.

Most important details - Staff presented projected revenues of about $54.2 million and expenditures of about $56.0 million, leaving an estimated $1.8 million gap in the presented budget numbers. The figures were described as preliminary and subject to some revenues arriving in arrears. - Fund balance: staff reported roughly $7.0 million unassigned fund balance (about 16% under the accounting presented). The board referenced a local 15% fund-balance floor described as a self-imposed ordinance or policy; state minimum was cited as 8%. - Main driver: a large increase in employee health-insurance costs was identified as the primary factor widening the budget gap; staff said health insurance accounts for roughly one-quarter of the…