Oconee County discloses $5.7 million shortfall tied to millage-rate miscalculation; insurance talks underway
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Summary
County Administrator Mister Jones told Oconee County Council that a millage-rate miscalculation dating back to 2019 has produced an estimated $5.7 million shortfall; council authorized staff to pursue PEBA insurance coverage and signaled possible budget freezes for fiscal 2627.
Oconee County Administrator Mister Jones told the County Council on Jan. 20 that the county has identified a multi-year miscalculation in how millage-related revenue was calculated and now estimates a roughly $5.7 million shortfall.
"To be precise, today I'm looking at about $5,700,000 in our deficit," Mister Jones said, and he added the county is renegotiating employee health insurance with projected savings "of at least $1,200,000" depending on council actions in the 2627 budget. Jones described the problem as a combination of miscommunication inside the finance department and a duplicated deduction by the auditor's office when preparing millage requests.
The chair (unidentified) said the issue "did not arise recently" and traced the pattern back to 2019, urging steps to improve controls. "Taxpayers deserve to know not just what happened but how it was allowed to persist," the chair said.
Why it matters: The county plans to incorporate the discovery into next year’s budget planning. Mister Jones said the shortfall had been masked for several years by stronger-than-expected performance in other revenue streams, and that as those offsets normalized the gap became apparent. He told council the county is reviewing all accounting entries and will propose changes in budget practices, policies and procedures to prevent recurrence.
What the county will do next: Council approved a directive from executive session to direct the county administrator to pursue health insurance coverage through PEBA, authorizing transfer and expansion of necessary funds to begin the process. Mister Jones also said staff are evaluating all options, including putting noncritical items on hold and possibly implementing a spending freeze for the 2627 budget if needed.
Audit and accountability: Jones explained that prior external audits relied primarily on finance-department reports rather than detailed journal-level review, which likely contributed to the failure to flag the undercollections. Council previously authorized a new auditing firm; Jones said that firm is conducting a more in-depth review and a scheduled call with the firm is expected to provide more information this week.
Numbers and scope: Mister Jones estimated an overall deficit around $5.7 million and projected at least $1.2 million in insurance savings contingent on contract changes. The miscalculation appears to affect how certain revenues were treated in millage calculations back to at least 2019; specific accounts where the error occurred are being compiled.
Procedural details: Council directed staff to pursue the PEBA insurance procurement; the chair added that if a proposed change proves harmful to employees it should be returned to the council for reconsideration. No final contractual terms were disclosed at the meeting.
The next steps: Mister Jones said staff will bring detailed requests and proposed policy changes to council during the county’s strategic planning for the 2627 fiscal year. The transcript records a planned phone call between staff and the new auditing firm on Thursday to review findings.
