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County deputy finance officer warns state bill could force $82 million gap and a 36¢ tax-rate jump for Shelby County
Summary
Michael Thompson, deputy director of administration and finance, told the Shelby County Budget Subcommittee on March 19 that House Bill 306 (HB306) would remove an accounting practice the county uses to record vacancy savings and could create an $82 million gap in the general fund.
Michael Thompson, deputy director of administration and finance, briefed the Shelby County Budget Subcommittee on March 19 about the fiscal implications of Tennessee House Bill 306 (HB306).
Thompson said HB306 would prevent a county legislative body from including a line item that accounts for vacancy savings (the budgeted payroll that is not spent when positions stay vacant). He warned that removing that accounting mechanism from the county budget would create a shortfall of roughly $82,000,000 in the county’s FY25 general fund budget and that the gap would require either large cuts or a tax increase. Using the county’s stated “penny” valuation of about $2.3 million per penny, Thompson said bridging an $82 million shortfall would amount…
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