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Tennessee Comptroller acknowledges Bradley County's FY2026 budget but warns on school reserves and ARP use
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Summary
The Tennessee Comptroller confirmed receipt of Bradley County's adopted FY2026 budget and said projected revenues appear sufficient, but flagged the General Purpose School Fund reserve shortfall and cautioned that planned American Rescue Plan spending must comply with federal rules.
Mayor D. Gary Davis presented a letter from the Tennessee Comptroller of the Treasury acknowledging receipt of a certified copy of Bradley County's fiscal year 2026 budget and summarizing the office's review.
The Comptroller, Jason E. Mumpower, wrote that "we have reviewed the budget and have determined that projected revenues and other available funds are sufficient to meet anticipated expenditures," while noting several items the county should address. The letter identified the county's General Purpose School Fund as budgeted to end the fiscal year with a fund balance below two months of expenditures and recommended adopting a fund-balance policy to maintain at least two months of regular operating revenue or expenditures for operating funds.
The Comptroller's review also recommended consolidating the multiple adoption documents the county submitted into a single PDF when uploading future budgets and cautioned that use of American Rescue Plan (ARP) funds in the budget does not constitute approval of those planned uses. The letter states that the governing body, with help from county attorneys, should verify ARP spending complies with applicable federal regulations and that ARP funds used contrary to federal rules must be returned.
The comptroller's office additionally commended the county for adopting its budget before the fiscal year began, noting timely adoption improves financial management and allows staff more time to prepare official accounting records for audit. The letter included contact information for the county's assigned financial analyst for follow-up questions.
The mayor recorded the Comptroller's letter as an attachment to the work-session minutes. The letter and its recommendations are now part of the public record; any budget amendments required later must be approved by the commission and uploaded to the Comptroller's portal for formal acknowledgment.