Hardin County judge presents balanced FY2025–26 budget that leans on hospital payout to cover operations

Hardin County Judge presented a proposed balanced operating budget for fiscal year 2025–26 on April 22, 2025, proposing roughly $60.78 million in total appropriations and asking the Fiscal Court to use recurring proceeds from the Hardin Memorial Hospital sale to cover part of operating needs.

The judge said the proposal tries to reconcile county growth and rising costs with limited revenue, and that the proposed operating net is balanced with roughly $23.6 million in operating revenue after offsets. He told the court the budget relies in part on the county’s annual hospital sale payout, using about $2.5 million of an approximately $2.7 million yearly payment to help balance operations.

The judge framed the choices as three main buckets for balancing: one-time pilot payments (the “Blue Oval” pilot funds), unrestricted reserves, and the recurring hospital payout. He said it makes fiscal sense to rely in part on the steady annual hospital payout rather than exhaust one-time reserves for recurring operational expenses.

Why it matters: the proposal addresses rising personnel and operating costs, a large increase in the county’s jail subsidy and continuing capital needs for EMS and facilities. The court must hold public hearings and approve ordinance readings before the budget can be finalized and submitted to the state by July 1.

Key revenue and expense points from the presentation: - Proposed total budget: presented as about $60.78 million (judge’s spoken slide figure). The judge described the budget as balanced. - Operating revenue shown in slides: about $23.6 million (net operating revenue after departmental offsets). - A 4% increase in property taxes is included (projected to add approximately $1.1 million to property-tax revenue). - The budget uses roughly $2.5 million of the annual Hardin Memorial Hospital (HMH) sale payout to support operations; the judge noted the payout is projected to recur for the next 20 years at about $2.7 million per year. - Personnel changes: an annual step and a 1% cost-of-living adjustment are included, plus a one-grade (5%) increase for hourly road-department and jail staff; the judge estimated personnel expense impacts at roughly a 1.8% increase overall. The presentation also proposes a part-time efficiency/innovation officer (up to $50,000) and a part-time lobbyist in Frankfort (budgeted at $20,000). - Reserves and cash: the judge presented unrestricted cash figures that, after restricted funds and encumbrances, left roughly $30–32 million total cash and calculated a 25% “rainy day” reserve target of about $15 million. That left an available projects/savings balance in the mid-single millions depending on planned uses, he said. - Capital and debt: the budget includes a proposed seven-year lease for EMS equipment (about $140,000 per year at roughly 4% interest) and a proposed EMS capital package of roughly $340,000 in the near term to replace aging equipment. - Subsidies: total subsidies budgeted around $12 million, driven in large part by a jail subsidy the judge said would reach about $5.8 million for the detention center. EMS subsidy and sheriff’s department subsidy were also noted.

Court members asked clarifying questions and were given a timeline: a public hearing and the budget’s first reading scheduled for May 13, second reading and adoption on June 10, and final submission to the state by July 1. The judge invited magistrates and the public to review the linked slide deck and to bring questions to county staff.

The judge repeatedly emphasized inflation and rising material and labor costs as persistent pressures; he pointed to asphalt and insurance increases and noted federal/state grant balances (including remaining ARPA funds) that continue to shape capital choices.

Ending: The proposed budget now moves to Finance Committee review and public hearings in May and June. The court will revisit the proposal at committee meetings before first reading on May 13.