Mercer County declares payroll software emergency, orders expedited bid to outsource April payroll

Mercer County commissioners voted unanimously to declare a payroll-software emergency and to begin an expedited bid process to outsource county payroll starting in April after prolonged problems with a new enterprise software implementation.

The county auditor, Carmen (county auditor), told the commission the implementation of the new Tyler enterprise software had caused repeated payroll errors, delayed month-end reporting and left department heads without reliable budget numbers. "This is a mess," Carmen said during the discussion, urging swift action to protect employees and county finances.

The vote followed more than two hours of public discussion and back-and-forth among commissioners, county staff and the county attorney about whether to return to the legacy AS/400 system, continue pressing the vendor to fix the implementation, or temporarily outsource payroll. Commissioner Mark (commissioner) pressed for firm deadlines and a strong legal posture against the software vendor, saying he wanted to "put their feet to the fire" and, if necessary, declare breach of contract. Todd (county state's attorney) said the legal team could pursue contractual remedies and recommended giving the vendor 30 days to present a plan while preparing contingency options.

Commissioners said the decision balanced two urgent priorities: stopping ongoing payroll errors that harm employees and preserving longer-term modernization goals. Several commissioners argued outsourcing payroll for one payroll cycle would reduce immediate reputational and operational risk. "We gotta stop the bleeding," one commissioner said, recommending a short-term outsourcing arrangement while exploring alternative vendors and legal remedies.

The commission instructed staff to advertise an expedited public solicitation for a qualified CPA firm or payroll provider with county and law-enforcement payroll experience. The motion, read into the record as an emergency action to "undertake an expedited bidding process to outsource payroll starting in April," passed with all five commissioners voting yes. The county attorney said the legal office would be authorized to pursue contractual remedies against the software vendor, including declaring breach and seeking damages; any litigation strategy would be handled in consultation with outside counsel where necessary.

Officials gave several operational clarifications during the meeting: the county has spent roughly a quarter of a million dollars with the vendor to date and had been billed about $191,000 in change orders, according to comments in the meeting; payroll is due the week after the meeting and staff said the county must act quickly to avoid further employee-impacting errors; the auditor's office will work with commissioners to solicit three competitive bids and evaluate local vendors as short-term providers. Commissioners also asked staff to notify county employees and vendors about the situation and the commission's plan.

The commission directed that a small working group — the county auditor, one or two commissioners and the county attorney — be authorized to work with prospective vendors and bring recommendations back to the full commission. The county will continue to press the current vendor to fix the software in the near term while soliciting short-term outsourcing proposals and evaluating alternative enterprise providers.

The vote and directions do not themselves terminate the contract with the software vendor; legal remedies, including a potential breach declaration and recovery of damages, were discussed and left to the county attorney. The commission also asked staff to report back at or before the next commission meeting with any firm recommendations or contract proposals.

Ending: County officials said the immediate priority is ensuring employees are paid accurately and on time; the expedited bid process is intended to be a temporary, stop-gap step while the county continues to pursue fixes and legal remedies related to the underlying software implementation.