Mitchell County says state prorated farm‑family credit, leaving county about $100,000 short

County Treasurer Shannon D. Palace told the Mitchell County Board of Supervisors on June 9 that the state prorated this year’s farm‑family tax credit, leaving the county with far less revenue than expected.

"What we were supposed to get was $177,000...we got about 43% of what we were expecting," Shannon said, summarizing the county’s receipt of the statutorily promised credit. She told supervisors the shortfall represents a direct loss to local budgets: "That $100,000 is probably $20,000 that Mitchell County budget's not going to get, but that extra $80,000 is cities and schools and colleges."

The treasurer said the state’s prorating means the county cannot recover the missing funds; the credit is treated as revenue in county accounting and, when the state reduces the payment, local budgets must absorb the change. Shannon urged supervisors to remember the reduction as they discuss budgets going forward.

Board members asked questions about broader impacts. The treasurer cautioned that the shortfall affects multiple taxing bodies because the credit flows to counties, schools, cities and colleges: "It's not just us...the schools are going to be short. That $100,000 is going to short the schools. It's going to short the cities."

The board also discussed related revenue risks, including the role of tax‑sale income in county budgets and pending legal and administrative developments affecting tax sales. No formal budget adjustments were adopted at the June 9 meeting; the treasurer requested that supervisors use the updated revenue expectations when finalizing next year’s budget decisions.

Board business that same morning included routine approvals and a staff request to delay payment on a $4,000 website search‑software renewal; a supervisor said the county plans to rely on a forthcoming new website and suggested using the contract’s 60‑day notice to avoid paying the renewal fee.