Chickasaw County supervisors pause adoption of FY2026–27 budget after debate over departmental reserves

Chickasaw County supervisors opened a public hearing April 13 on the proposed fiscal year 2026–27 county budget and then postponed formal adoption after a lengthy debate over departmental ending fund balances and the timing of any reductions.

Auditor and finance staff said budget work began last November and that the county’s proposed budget totals about $29 million, including nearly $3.5 million in capital projects and a continuing debt payment for a prior radio project. Staff said they requested 2% overall budget growth and described proposed levy and rate changes that would yield differing tax impacts for urban and rural property owners.

Board members questioned whether approving the proposed budget as presented would limit the board’s ability to reduce appropriations later in the fiscal year. One supervisor urged adjusting appropriations now if members had concerns, saying, “This is your chance to control that.” The county auditor replied that appropriations set the July 1 departmental funding levels but cautioned the board about the legal intent of the appropriation process.

The most contentious exchange centered on the sheriff’s budget. Several supervisors noted the sheriff’s office has returned significant unspent funds in recent years and expressed concern that large ending balances may attract state scrutiny if a pending state proposal limits allowable reserves. “If the state does indeed do an ending fund balance percent, we run all the other departments pretty tight of needs and wants, but we let this one have a lot,” one supervisor said.

The sheriff’s office and other department heads defended their practices and warned that some operations run 24/7 and can incur unpredictable overtime, particularly during summer events. County officials acknowledged those operational realities while asking for clearer documentation of expected year-end balances and planned spending.

After debate, the board closed the public hearing and then declined to adopt Resolution 4-13-26-21 (the budget adoption resolution) at this meeting, requesting more time to review department-level returned funds and percentages from the previous year before certifying the budget by the April 30 deadline. The board directed staff to provide department-by-department detail of prior year givebacks and to schedule a follow-up session to resolve levy and appropriation questions.

Next steps: staff will compile the requested return-of-funds figures and percent-of-budget metrics and present them to the board for further discussion before the certification deadline.