Counties Budgeting Influx Of Sales Tax For One Time Expenses

Counties are being cautious moving into the budget season with the recent influx of sales tax revenue not expected to hold in the future.

White County Executive Denny Wayne Robinson said the main question is will this one time COVID fund spending be reoccurring.

“We don’t think so,” Robinson said. “We don’t expect this trend to continue to rise, especially once the stimulus money is gone. We are not budgeting for that to be a long term funding mechanism.”

Overton County is about 30 percent above last year’s sales tax revenue. County Executive Ben Danner said the uncertainty of that trend continuing means limiting new spending.

“Going forward, we’re just trying to use that money for one time expenses and anything that we could use that money for that might have come out of property tax money,” Danner said. “We’re going to use it for that and save the money in our budget, so that way it would save money in our fund balance.”

Robinson said the hike of sales tax revenue will also mostly be used for one time expenses. Robinson said he is still expecting a tight budget as the county works on departmental needs and wants.

“Maybe to put a roof on a building. Maybe to help with some HVAC. Maybe upgrade an ambulance or buy a fire truck,” Robinson said. “Some stuff that is not payroll.”

Danner said commissioners will meet next month to review the budget. Danner said Overton County residents can expect no increases in property tax with a healthy general fund.

Both County Executives said the county budgets are on pace to be completed and passed before the July deadline.