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County finance warns House bill could create $82 million hole, equivalent to a 36¢ tax increase
Summary
Michael Thompson, Shelby County deputy director of administration and finance, said House Bill 306 could remove the county's ability to account for vacancy savings and other personnel restrictions, potentially creating an $82 million gap in the general fund that he estimated could require up to a 36¢ property tax increase if not addressed.
Michael Thompson, Deputy Director of Administration and Finance, warned the subcommittee that proposed state legislation (House Bill 306) could materially affect Shelby County's budget. Reading the bill summary and historical budget pages, Thompson said the proposal would prohibit a county legislative body from implementing certain personnel or operating restrictions; he said an $82,000,000 gap could result from removing the county's salary/vacancy accounting and estimated that closing that gap could require as much as a 36¢ increase to the property tax rate.
Thompson said the accounting line at issue dates back to FY2009 and that the FY25 adopted budget contains an $82 million vacancy/salary line; commissioners asked whether county lobbyists or attorneys were engaged, and Thompson said the county's attorneys and lobbyists had been working on the issue and that the item was gaining traction at the state level. He urged commissioners to monitor the House schedule (he noted the bill was before the House at 1:30 p.m. the same day) and to coordinate outreach to explain the local fiscal impact.
