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Wise County outlines $65.8M FY26/27 budget, warns of $910,890 shortfall and possible use of rainy day fund
Summary
Interim Administrator Karen T. Mullins presented a balanced $65.8 million FY26/27 draft budget reduced roughly $10 million from last year; Treasurer Delores Smith reported a cash balance of $13,638,720 but a projected $910,890 shortfall, likely requiring use of the county's rainy day fund.
Wise County Interim Administrator Karen T. Mullins presented the county’s draft FY26/27 budget at the Board of Supervisors’ May 14 meeting, outlining a $65.8 million plan in both revenues and expenditures and describing savings measures aimed at closing a roughly $10 million (about 13.2%) reduction from the prior adjusted budget.
Mullins told the board the draft budget reflects a $0.14 property tax rate adjustment tied to a general reassessment and notes continued declines in coal tax and projected sales tax revenue. Several expenditure categories remain uncertain pending the state budget and final decisions on school funding.
Delores Smith, Wise County Treasurer, reported total cash and investments of $13,638,720 as of May 14 and projected a shortfall of $910,890 before year-end. "Although I am actively collecting tax revenue, the county is expected to have a shortfall of $910,890," Smith said, and she indicated staff would likely need to tap the county’s rainy day fund to maintain operations until the next revenue cycle.
The proposed budget assumes $14.8 million in local funding for Wise County Public Schools; Superintendent Dr. Goforth and Finance Director Ron Vicars presented the school system’s operating, capital outlay and debt service budgets and emphasized investments in safety, personnel and student support. Vicars outlined school-specific spending areas and repeated the $14.8 million local funding request.
To balance the budget, county leaders listed several cost-saving steps already taken or proposed: a change in the county health insurance plan with estimated annual savings of $624,000, a $2.3 million reduction in the Sheriff’s Office budget through operational adjustments, elimination of eight county positions across administration and constitutional offices (partially offset by grants), and discontinuation of contract cleaning services producing roughly $210,000 in annual savings. A freeze on discretionary spending and travel was also noted.
Board members set a public hearing on the FY26/27 budget for June 11, 2026, at 6:00 p.m. and repeatedly emphasized difficult decisions ahead. The board did not take a final vote on the budget at the May 14 meeting.
