Shelby County officials vow fixes after state comptroller refuses FY2026 budget

Shelby County’s administration told commissioners on Oct. 22 that it has added staff and taken other steps to respond after the state comptroller declined to approve the county’s FY2026 budget.

“I was asked to present an explanation and plan of action,” Harold Collins, the county’s chief administrative officer, read from a response prepared by the chief financial officer. Collins described an Oracle financial‑system conversion that coincided with the budget process, changes to the certified tax rate and repeated rebalancing that, he said, contributed to the submission problems. He said the administration has added personnel to the budget team and will follow the comptroller’s instructions for the FY2027 submission.

Deputy Director of Finance Danielle Schonbaum told the committee that finance has not completed a review of a late add‑on request from the Circuit Court Clerk’s office and therefore could not recommend approving that funding. “Finance has not had an opportunity to review this, and so we cannot recommend approval of something from fund balance,” Schonbaum said.

Commissioners pressed for more detail and a single reconciled data source. Several asked for written confirmation from Memphis‑Shelby County Schools about its budget‑upload timing and for a policy that ensures consistent line‑item submissions to the comptroller. Commissioner members also asked for a clear timeline and regular reporting so the commission can verify the administration’s corrective actions ahead of the next budget cycle.

Collins said the administration will resubmit and coordinate more closely with finance, the CFO and the county’s central administrative office to ensure the next filing meets the comptroller’s requirements. The committee requested that finance and the affected departments align on a single set of figures before Monday’s full commission meeting so members can decide whether to advance add‑on requests.