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Fayette County projects $4.4M revenue shortfall for FY2026 as staff urges caution on data-center windfalls
Summary
Fayette County officials told commissioners at a May 13 retreat that combined revenue headwinds — lower property tax collections under HB581, LOST shortfalls, and weaker TAVT and permit revenues — create a roughly $4.4 million projected revenue shortfall for FY2026, leaving an expected $500,000 decrease in fund balance after transfers. Staff advised treating any potential QTS data‑center revenue as one-time until state legislative uncertainty is resolved.
Chief Financial Officer Sheryl Weinmann told the Fayette County Board of Commissioners on May 13 that the county entered the retreat with a $30.8 million FY2025 fund balance but only about $602,000 as unassigned, with many amounts restricted or reserved for stabilization and capital projects.
Weinmann said a combination of lower property tax collections (projected about $1.9 million below budget due to House Bill 581), a LOST shortfall of about $2 million, weaker TAVT and permit receipts, and other items produced a combined projected revenue impact of roughly $4.4 million for FY2026. She said some expenditure savings in areas such as general government, judicial, public works, culture and recreation were offsetting parts of the shortfall, producing a net operational positive before transfers but, after capital transfers, an overall projected reduction in fund balance of about $500,000.
"Not all of our fund balance is available for spending," Weinmann said, explaining set-asides for inventories, a 25% expense stabilization reserve, a $2 million additional catastrophe reserve, and $8.3 million for the five‑year CIP and capital projects.
County Administrator Steve Rapson told commissioners the county would treat any future revenue tied to the QTS data‑center cautiously. Rapson said QTS currently benefits from a $2.6 billion tax abatement through the Development Authority and that the largest future revenues were expected from personal property tax — but state-level action could change how that revenue flows.
"Staff will recommend treating future QTS revenue as one‑time revenue and use it for capital projects until the legislature’s direction becomes clearer," Rapson said.
Rapson and Weinmann both cited recent legislative changes, including Senate Bill 33 and House Bill 581, that have complicated revenue projections by altering reassessment deadlines, homestead-related options, and opt-out provisions.
The financial presentation also noted strong SPLOST collections in recent years: Fayette County collected roughly $17.3 million in 2024 and $18.5 million in 2025 for the 2023 SPLOST, and nearly $48 million over almost three years of SPLOST receipts. Weinmann said the county had projected TAVT receipts at roughly $7.36M–$7.5M and described those revenues as consumer-driven and relatively flat year to year.
The county will present its recommended budget on May 21; staff emphasized that revenue uncertainty and legislative risk counsel restraint in committing ongoing operating expenditures to potential one‑time windfalls.
