Budget panel votes $100K in cuts

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MIKE WEST
Courier Editor

Cannon County moved a step forward in resolving its financial issues with the state Comptroller Thursday during a Budget Committee hearing.

The panel approved two substantial cuts in the county's general fund for fiscal year 2016-2017. The Budget Committee unanimously OKed a 3.42 percent cut in Cannon County's solid waste expenditures and a 2.24 percent cut in the county's General Fund expenditures.

When combined, the two cuts will reduce the county's spending by slightly more than $100,000 for the budget year and is expected to meet the demands of the Tennessee Comptroller's office.

The budget cuts must be approved by the full Cannon County Commission when it meets Thursday, November 10 at 5 p.m. in the Courthouse.

"The Comptroller wants corrective action now," said Budget Chairman Mark Barker. "We want to get out of this shadow before it gets worse."

A new letter (received Thursday, October 27) from the Comptroller's office spelled out the actions the state wants from Cannon County. The letter followed a meeting in Nashville between four Cannon County Commissioners and four representatives from the state Comptroller's office.

Ben Rogers, Cannon County's CTAS representative, highlighted a series of four directives from the Comptroller's office including better internal control of spending, monthly monitoring by the state, maintaining a cash balance and a series of steps to generate at least $1 million in working capital.

"You can't do anything about the existing tax rate," Rogers said which leaves cutting expenditures the only solution. An across the board decrease was recommended with certain budget items protected by "maintenance of effort" under state law. The maintenance of effort provisions protects

An across the board decrease was recommended with certain budget items protected by "maintenance of effort" under state law. The maintenance of effort provisions protects portion of the Sheriff's Office, Adams Memorial Library and the Election Commission budgets.

The Comptroller's office also wants Cannon County to consider long-range policies which could prevent budget shortfalls in the future, Rogers said.
Among those policies is centralized purchasing, he said. That change would require hiring a director of finance whose office would handle payroll, purchases, budgeting and accounting for all Cannon County departments.

Commissioner Glenn Steakley provided "food for thought" to his fellow Budget Committee members to assist the county's immediate needs. Steakley's analysis of the county's budget (and expenditures) indicated a 2.24 percent cut across the board would reduce spending by slightly more than $100,000.

"We should set the rate and let them (department heads) manage their spending," Steakley said. No budget amendments will be allowed with departments spending only what was budgeted.

Steakley said he believes the solution will work because the county's department heads are willing to help overcome this crisis.

Budget Committee member Commissioner Jim Bush said Cannon County can expect to be under close scrutiny until "we can demonstrate that we can run this county efficiently."

Bush, who attended the Nashville meeting, said Cannon County's cash-flow problems really bothered the Comptroller.

"We have to show them what we can get this under control," he said.

Turning to the solid waste budget, Steakley said the state officials had a couple of concerns.

"It comes into play for two reasons," Steakley said. "First the County Commission approved a non-balanced budget for that department and solid waste revenues have dropped the last three years."

The Comptroller's office also brought up that cash infusions have been made into solid waste since 2009, he said.

The Budget Committee includes Commissioners Mark Barker, chairman, Todd Hollandsworth, Brent Bush, Jim Bush, Richie Hunter, Glenn Steakley, Jamie Holloway and citizens Bill Jennings, James Adkins and Paul Morgan.

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