Knox County approves up-to-$300,000 temporary loan to Mary Davis juvenile home amid staffing shortfall

The Knox County Board on May 28 approved a resolution authorizing temporary transfers from the contingency fund to the Mary Davis juvenile home, up to $300,000 at any one time, to address cash-flow shortfalls resulting from staffing problems.

The transfer was described in the meeting as a short-term loan. "This is just a temporary loan," the chair said, explaining that when state and other county payments arrive the money would be repaid to the contingency fund.

County officials said the immediate cash shortfall was driven in part by District 205's inability to provide the statutorily required teaching staff to the Mary Davis home, leaving the facility below required teacher-to-juvenile ratios and limiting admissions from other counties. Board discussion noted that the county and the facility are pursuing a longer-term plan and that the county has already met with facility staff and the chief judge.

Board members asked procedural and repayment questions, such as whether the transfer would be repaid when reimbursements arrive and how long corrective actions would take. The chair and treasurer indicated the contingency fund would cover the temporary loan and that they expect some funds to be repaid in the following month when other counties and the state issue payments.

The board recorded a roll-call vote approving the resolution (vote recorded in meeting). Members were told staff will return with more information as the county pursues longer-term solutions to the staffing and cash-flow issues.