No Current Deficit: Understanding the County’s FY 2027 Budget Forecast

The following information is to provide greater clarity on the county's finances following last week's budget presentation for FY2027.

1. No deficit exists in the current budget

Right now, the County's budget is balanced. Revenues and expenses align for the current fiscal year, which ends September 30^th, so we are not operating at a deficit today.

1. The projected shortfall is for next fiscal year (October 1, 2026 through September 30, 2027)

When we look ahead to FY 2027, we estimate:

• Projected revenues: $38.0M
• Projected expenses: $40.8M
• Projected net shortfall: about $2.795M

This shortfall is not the current situation - it is a forecast based on expected costs and revenue patterns for next year.

1. Why there is no deficit today

Budgets are developed one fiscal year at a time. For the current year (FY 2026), we ensured revenues matched expenses. The projected gap for next year (FY 2027) appears because costs are expected to grow faster than revenue if no changes are made.

1. How the projected shortfall can be addressed

To ensure a balanced FY 2027 budget, we have two main levers available:

• Increase revenues

This could include adjusting the public safety fee, millage rate, fees for services or other revenue sources.

• Decrease expenses

This may involve further budget reductions and reprioritizing spending.