Oktibbeha County’s Plan to Use Reserves for Recurring Expenses: A Concern?

Oktibbeha County’s Plan to Use Reserves for Recurring Expenses: A Concern?

Oktibbeha County in Mississippi recently took a decision that has raised eyebrows, leading to many questions from residents about its financial prudence. The County Board of Supervisors recently held a work session focused on setting the 2025 budget, where they revealed plans to fund the budget shortfall by dipping into the county’s financial reserves.

Plan for Reserves

The county has presented plans to spend more than its income, which has left financial experts and observant residents worried. The Supervisors’ decision to use the reserves comes despite an initially proposed budget with a $2.3 million shortfall. This shortfall came in a proposal prepared by the Golden Triangle Planning and Development District, who took over the task after the county terminated its county administrator in August.

Adding to the concern is the decision to add 11 new positions to the county’s workforce. This includes five new additional sheriff’s deputies, a human resources manager, an IT director, a part-time engineer, and three other workers for the road department. Also in the budget are new vehicles and equipment for the sheriff and road departments, amounting to a sum total of an extra $2.66 million in expenses.

Questionable Tactics

The county plans to offset a small part of this considerable expenditure with an increase in the mill value, which will provide just over $300,000. The remainder of the funds is expected to come from the cash reserves. What raises eyebrows is that no one, not even the supervisors, knows the total amount of money currently in reserve. This decision has been equated to writing a check without knowing the balance in the bank.

There is notable concern that if the county takes on these recurring payroll costs without a concrete plan to generate the necessary funds, it could keep impacting the county’s budget in the subsequent years. Usually, when such an addition needs to take place, the costs are factored into the budget from the onset and not as an afterthought.

Impact on Taxpayers

In defending their decisions, the county supervisors made mention of potential state grants and changes to the county’s appraisal formula that could provide funds to cover these additional payroll costs. However, these potential financial aids are not guaranteed, leaving the taxpayers to bear the burden until those changes take place, which could take up to two budget years.

Board President Marvell Howard stated that choosing the reserves over hiking property taxes shows respect for the taxpayers. However, a glance at future plans reveals a potential increase in property taxes by 20% when the new appraisal formula is introduced in 2026. It appears that the supervisors have no plans to ease this impact, as they are already counting on these increased funds to cover the costs of the new hires. Despite these plans, the reason for the immediate necessity of these hires has not been explained, leaving the taxpayers in the dark.

The Need for Transparency

A public hearing on the proposed budget has been scheduled. By then, the supervisors are expected to know the exact amount in the county’s reserves. It is hoped that they would take the chance to reconsider dipping into the reserves without a solid plan for future funding. Reserves are typically maintained for unexpected circumstances, but this approach turns a safety net into a funding source. In the opinions of many, this is not a wise path to tread.

The need for more transparency and prudence in financial decision-making is therefore evident. At the very least, taxpayers deserve a detailed explanation of why these additional hires are immediately necessary.


Author: HERE Starkville

HERE Starkville

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