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County administration warns House Bill 306 could force tax increases by removing vacancy-savings flexibility
Summary
County budget staff told the Budget & Finance Committee that House Bill 306, as interpreted by the administration, could require counties to budget full-year pay for vacant positions and thus necessitate new revenue or tax increases to balance FY26 budgets.
Audrey Tipton, Shelby County Director of Administration and Finance, and Gerald Thornton, director of human resources, told the Budget & Finance Committee that county staff are tracking House Bill 306 and that, as currently drafted, the measure could have major fiscal consequences for local budgets.
Tipton said the county is implementing a new enterprise resource planning (ERP) platform for budget submissions this cycle and that the mayor’s office will clearly identify which elected-official requests are included in the proposed budget and which are not.…
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