Lincoln County commissioners target $900,000 budget shortfall, shift one-time funds to cover Detention Center losses

Lincoln County commissioners on May 6 moved to trim line items and reassign one-time funds to address a roughly $900,000 shortfall in Fund 64 as officials continue to finalize salary negotiations and assess the potential impact of legislative changes.

Dan McArthur, who presented the proposed FY2025–26 budget, told the board the county's assessed valuation is $4,055,534 and that overall revenues have not materially increased while unfunded mandates continue to grow. He noted the county has seen recent investment inflows but warned those sums cannot be relied upon for recurring costs.

Treasurer Shawn Frehner said more than $800,000 was transferred into the general fund last year and over $600,000 so far this fiscal year, calling that 'new money' and cautioning the board against treating it as permanent revenue.

The board discussed losses at the Detention Center, which staff estimated to exceed $1 million on an ongoing basis. Chair Janine Woodworth said the Detention Center shortfall is a countywide budget problem because the county must fund the jail 'pursuant to statute.' Recorder/Auditor Amy Elmer said the county faces 'a hole that must be filled or we will lose employees,' arguing the deficit cannot be deferred without personnel impacts.

To start closing the gap, the board directed staff to reclassify roughly $600,000 previously budgeted under the commissioners' account as 'transfers out,' so that Recorder/Auditor Amy Elmer will move funds into Fund 64 only as needed. Commissioners set an initial target to cut about $900,000 from the draft budget and asked staff to return with a reworked salary schedule if SB 116 passes or if negotiations produce different wage figures.

The board approved or directed a series of targeted cuts and adjustments: keeping the assessor's deputy at part-time (saving roughly $37,380 versus converting to full-time), removing a $50,000 vehicle purchase from the FILT fund, deleting a $4,000 computer from the Treasurer's budget, reducing Buildings and Grounds capital outlay by $15,000 and services/supplies by $5,870, and reducing District Attorney salaries by $10,000. Other adjustments included trimming $11,000 from employee benefits and reducing several District Court line items.

The board also discussed funding strategies for capital needs. Staff recommended using LC Land Act Special Use (Fund 97) for one-time capital costs (for example, a hot water heater and plumbing repairs) rather than recurring expenditures; board members agreed Fund 97 is better-suited to one-time projects and directed staff to transfer funds to Fund 64 for one-time needs as appropriate.

On inmate revenue, staff reported about $500,000 collected so far this fiscal year and projected about $600,000 annually based on 25 inmates at $83 per day. The board said it will consider seeking a per-day rate increase for federal inmates in November.

Other adjustments included closing Fund 73 and transferring its balance to Fund 18, increasing some Panaca town park expenditures (where fund balances exist), and cutting a part-time position from the Clerk's budget ($17,400) while removing $35,000 previously budgeted for Dominion support. Treasurer and Recorder/Auditor budgets were each reduced by $1,500; Assessor services/supplies were trimmed by $5,000.

Amy Elmer said Alamo Justice Court benefits will need adjustment. The sheriff's office told the board that filling only one required patrol position instead of two could save about $65,981; the board also trimmed ammunition, Search and Rescue, travel/per diem, standby and shift-differential line items in small amounts.

Chair Woodworth twice called for public comment; none was offered. The board canceled the budget meeting previously scheduled for May 12 and adjourned the special session at 2:50 p.m.

What happens next: staff will rework salary and transfer schedules based on negotiation outcomes and any changes tied to SB 116, then return to the board with an updated proposal.