Wythe County sets May 26 public hearing after administrator outlines $3.8M shortfall and school funding gap

Wythe County administrators presented the proposed FY 2027 revenue and expenditure budgets at the May 12 Board of Supervisors meeting, told supervisors the county faced an estimated $3,800,000 gap between revenues and expenditures and recommended advertising the budget and scheduling a public hearing on May 26.

County administrator (speaker 16) told the board the largest factor in the shortfall was increased school-board funding requests; he said the school division’s total budget rose modestly year-over-year but that changes to calculation templates and a lower composite index had reduced state support, producing about a $2,500,000 county request to maintain school operations. The administrator said he had not cut the school budget in the draft and that some capital projects had been reduced or removed elsewhere in the county budget.

The administrator described available options: use reserves to balance the fiscal year, advertise a short-term real-estate tax increase (he estimated a 5‑cent increase would bring roughly $1.3 million–$1.4 million), or advertise the current tax rates and pull appropriation until final votes (the board opted to advertise the budget as presented and to set the May 26 public hearing). He noted that anticipated revenue from the data center project could bring substantial tax receipts in the future, and he called out an anticipated increase in restricted sheriff’s civil/photo-enforcement revenues and modest increases anticipated from other sources.

Supervisors asked follow-up questions about the Joint Industrial Development Authority (JIDA) funding, whether the board could withhold appropriations until outstanding accountability questions were answered, and whether sheriff office staffing requests were included (the administrator said the staffing request was not included). Several supervisors said they preferred to advertise the budget but reserve the right to change appropriation decisions after public comment and further review.

The board voted in favor of advertising the revenue and expenditure budget and to set the required public hearing for May 26, 2026. The board also voted to advertise current tax rates rather than advertise a tax increase.

Next steps: the budget will be the subject of the advertised public hearing on May 26; final appropriation and any tax changes will be decided in future action after the hearing and any further work sessions.