Committee reviews FY2027 budget forecasts, PPRT outlook and risk fund status

Chairwoman Sharon Williams called the Finance, Audit and Legislative Affairs Committee to order and the panel approved the meeting minutes unanimously before staff presented financial reports.

Julie Kusturin, a staff member, summarized April (period 4) results, saying, "we are at 24.9% of budget and expenditures were at 24.2%" and that general fund revenues were about 27.9% of the year-to-date budget. She said income tax through May was roughly "2 to 3% higher than 2025" and set the county's 2026 estimated PPRT (personal property replacement tax) receipts at about $6 million, which she described as approximately "2.5% higher than 2025 and about 3% higher than the adopted budget." Kusturin highlighted that PPRT distributions are lumpy, with major receipts expected in July and October, and that staff will update estimates when IML publishes July projections.

Kusturin also warned that state-level actions have reduced what counties receive. She said the state has been "diverting funds away to help balance their budget," estimating the county's share of the state's FY27 diversion at about $126,000.

Heather McCord reported separately that the long-term care services fund stood at $3.6 million through April 30, with $46,000 earned recently and $240,000 year to date; she said the fund remains on track to pay the principal by 2032 with roughly $1 million in reserve. McCord also summarized accounts payable for May at about $4.4 million.

The committee then turned to FY2027 budget issues, focusing on the IMRF and FICA levies and the county's risk fund. McCord reviewed FY26 levy changes, noting 5.92 levy 'pennies' had been shifted out of IMRF and FICA to shore up other funds and that, given current employment and vacancy trends, staff now project a need to shift about 5.25 pennies back into IMRF/FICA for FY27 to reach target balances. She said the risk fund finished 2025 with $4.58 million and could end the year at roughly $5.4 million once transfers and charges post, but that not all budgeted capital spending (including $3.5 million for architectural and engineering services related to the jail) will be spent this fiscal year, which affects cash-flow timing for transfers.

Scott Sorrel told the committee that one outstanding litigation exposure remains "significant" and "would more than drain the reserves in this fund," noting that the Heidelberg settlement had been paid and that the committee could go into closed session for details. Sorrel and others reiterated that state diversions and potential legislative changes — including discussion at the state level about affordable housing bills and zoning authority — could influence the tax base and thus county revenues. Sorrel advised the committee to watch sales and use tax remittances closely through the summer as staff finalizes budget recommendations.

Committee members raised process and transparency questions. Committee member Danny Phelan asked that staff provide explicit feedback to departments and elected offices when funding requests are reduced so those offices understand the reasons and can respond. Committee member Rob Reneau pressed staff to continue treating vacancies as an opportunity to reassess and potentially realign positions rather than automatically refilling slots.

The committee was told a fuller update on the position pool will be provided at the July meeting, and Chairwoman Williams noted next month's agenda will include an in-depth jail finance discussion.

Votes at a glance: the committee approved the minutes from the June 2, 2026 meeting by voice vote and recorded the result as unanimous.

The meeting concluded with members thanking Heather McCord, who said she will attend the upcoming board meeting but is moving on from the committee role. Chairwoman Williams adjourned the meeting.