Wythe County proposes FY2027 budget with $3.8 million deficit; public hearing set for May 26

County budget staff presented an overview of the FY2027 recommended revenue and expenditure budgets and told the Wythe County Board of Supervisors the draft shows a $3,800,000 deficit between projected revenues and proposed spending. The presenter said much of the pressure stems from the school division's request for an additional $2,500,000 to meet operational needs.

"In my years doing this, this is the largest deficit that we have had getting to this point," the presenter said, noting the county could cover some shortfalls from reserves but that, "If it were not for our reserves ... I would be recommending at least a 5¢ tax increase for this year." The draft preserves most current service levels while removing or reducing many capital projects and does not include new full-time positions requested by EMS, IT or the sheriff's office.

The administrator reviewed possible revenue sources flagged in the draft, including an estimated increase of $4,000,000 tied to sheriff's photo enforcement fines (subject to new legislation limiting use) and a staff projection that the proposed data center could bring as much as $10,000,000 in annual tax revenue beginning around 2028. Staff cautioned, however, that those revenue items are conditional and that some restrictions apply to how certain funds can be used.

After the presentation supervisors debated procedural choices about the JIDA appropriation and whether to advertise a different tax rate. A motion by Supervisor Martin to advertise the revenue and expenditure budget as presented and set a public hearing for May 26 carried on roll call; the board also voted to advertise the current tax rates rather than proposing a tax increase at this time.

The advertised revenue total is shown in the draft and the board will accept comment at the public hearing; supervisors may revise appropriations or the advertised rate following the hearing and before final adoption.