Gordon County officials warn of multi-million dollar budget gap as state bills threaten local revenue

County Administrator Jim Ledbetter and county finance staff told the Gordon County Board of Commissioners on March 17 that the county faces growing budget pressure from department requests, rising operating costs and several pending state measures.

Andrea Bramlett, a finance staff member, told the board it was "sitting around $87,000 in the good" under current status-quo assumptions but that 12 above-status-quo items remain unbudgeted. Bramlett said a 10% increase in gasoline and diesel costs alone would create an estimated $743,000 shortfall; if all departmental requests were granted, the county could face roughly $3 million in additional spending needs.

"If we kept the status quo of the previous year, we have a balanced budget," Ledbetter said, but he added that the status quo excludes a 3% cost-of-living adjustment, library requests and likely fuel and insurance increases. Ledbetter later summarized staff estimates that the county would need an "estimated $3–$4 million to balance the budget" to address current departmental requests and service needs.

Bramlett presented a 10-year projection that included a 3% annual COLA and a 9% health-insurance increase. One scenario showed a potential $26 million shortfall over that period if the millage rate remained unchanged; an increase of one-half mill (0.0005) could yield an estimated $14 million in additional revenue, according to staff projections. Board members did not vote on changing the millage at the session.

Officials also discussed using FLOST proceeds and creating tax districts to direct revenues to services rendered in unincorporated areas. Ledbetter said designating collections for fire service as unincorporated revenue would not be a millage increase but a reallocation of where the revenue is spent. He cautioned that recent state legislation and uncertainty about how the state will replace local property tax revenue complicate planning.

Assistant Administrator Keith King told commissioners that population growth is increasing demand for services and staffing: a new west-county fire station, a planned 911 center that would add another station and roughly eight employees, an expanding senior center and the future need for an in-house engineer. King warned that rising costs place pressure on the county's six-month reserve requirement.

Ledbetter identified several pending bills he said would negatively affect county finances if enacted, including HB 646 (which he estimated could cost the county about $160,000 annually if it raises coroner pay and requires certain health coverage) and other measures (HB 295, HB 386, SB 387, SB 447). Commissioner Chad Steward said he was frustrated that proposed state changes such as HB 1116 could undercut the county's FLOST-based plans and the citizens' vote to fund services.

Finance staff noted one capital outlay request — security upgrades for Juvenile Court estimated at about $45,000 — that would be funded outside the General Fund. Bramlett and Ledbetter said the county has kept millage relatively low through tight budgeting and grants such as ARPA and LMIG, but they emphasized that staff need guidance to reconcile department requests with revenue projections.

No formal budget decisions were made at the March 17 session. The board entered executive session to discuss a legal matter and, upon exiting, took no further action before adjourning.

The county plans to continue meetings with department heads and elected officials as staff refine revenue and expenditure projections and return with options for balancing the budget.