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Henry County Board of Supervisors tap into savings to avert tax increase

The Henry County Board of Supervisors voted on Tuesday to balance its fiscal year budget through use of the county’s general fund reserves instead of increasing real estate taxes.

According to the board, the vote came after a public hearing to consider a proposed 6.5% real estate tax rate increase to provide additional funding for education.

In April the board adopted a budget that increased school funding by $4.3 million and brought the total school budget to $107,018,865.

That budget projected $72.6 million in state funds and 21.6 million in local funds, the Board said.

According to the Board the state finalized a budget that increased its portion to $80.1 million.

The increased funding from the state mandated that the county also provide an additional $3.8 million in matching funds, we’re told.

Three options were presented to the Board to account for the new budget deficit; decrease expenditures, use of its unassigned fund balance or increase taxes. The Board ultimately chose to transfer money from its reserves to provide the additional funding for education, we’ve learned.

Along with the annual budget, the schools are supported through a separate fund generated through an additional one percent sales tax. That fund currently has a balance of $10.2 million and accrues approximately $5.5 million per year.

Source: WSLS News 10

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