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Russell County administrator flags $200,000–$300,000 county budget shortfall as state decisions remain pending
Summary
County administrator Lonzo told the Board of Supervisors the FY2026–27 draft budget faces a roughly $200,000–$300,000 county‑side gap driven by uncertain state decisions on employee raises and a rise in health‑insurance, fuel and waste‑contract costs.
Lonzo, the Russell County administrator, told the Board of Supervisors at a June 15 budget workshop that the county faces a roughly $200,000 to $300,000 gap in its FY2026–27 draft budget as it waits for final state decisions on the data‑center tax and employee pay increases.
The shortfall stems from a combination of factors, Lonzo said: unresolved state negotiations over government raises (the House has proposed 3% and the Senate 4%), a health‑insurance premium increase that arrived lower than worst‑case estimates but still substantial (Lonzo reported insurers quoted about a 10% increase), a roughly $40,000 contractual increase on the county’s regional waste contract, and about $14,000 per month in additional fuel and transportation costs that began after April.
"Right now we are running with about a $200,000 deficit," Lonzo said, adding that timing of invoices and revenues can move that figure toward $300,000. He explained the county works on a cash basis and must cut off purchases by June 30 to close the fiscal year, so departments were instructed to complete planned purchases by June 15 to help lock in a final tally.
Why it matters: the county must decide whether to absorb higher employer costs, pass higher employee cost‑sharing for insurance, or identify new revenue or one‑time capital sources. Lonzo calculated that each one‑percentage‑point change in the county‑side raise equals roughly $32,000 in additional recurring expense and that CSA and other state‑mandated cost centers already drive large growth in expenditures.
Board members and staff highlighted the largest cost drivers: the Children's Services Act (CSA), which Lonzo said is running around $400,000 per month and required an upward budget adjustment; trash and waste disposal, where the CPI‑based contract increase and higher transport costs are material; and the regional jail, which Lonzo said was largely flat in the current projections.
The administrator also noted the school funding line in the draft looks flat because department of education calculations use a December 2025 ADM snapshot; any state adjustments to required local effort (RLE) will change the amount, but the county will not recognize uncertain revenue until it is confirmed.
Next steps: Lonzo said he will circulate updated payroll projections as the General Assembly and governor finalize negotiations, provide a comparison of neighboring counties’ tipping fees at the board’s request, and meet with the budget committee before the board’s June 24 session to finalize draft numbers. The board discussed options including modest fee increases, tighter spending controls, and using restricted one‑time capital proceeds for specific projects rather than recurring operations.
The board did not adopt a final budget at the workshop; staff were directed to continue preparing numbers and to bring recommendations to the budget committee and full board at upcoming meetings.
