Shelby County may not have enough money to meet November payroll
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MEMPHIS, Tenn. – Shelby County may not be able to pay its employees if its commission doesn’t act quickly on a $43 million issue.
The administration said that the issue is a combination of unexpected costs, like $1.5 million from Memphis Safe Task Force expenses for the sheriff’s office, and not enough revenue. But even with the approval from the county commission, they’ll also need approval from the state.
“We have had less revenue this year. We have had increased expenses. We’ve had the Task Force expenses,” said Shelby County Deputy Director of Administration and Finance Danielle Schonbaum.
According to the Shelby County Government, the county has financial issues.
“This is being stated as partially a cash flow issue and partially unanticipated, unbudgeted expenses. I already wrote Miss Schonbaum suggesting that they go out for a loan, because I don’t consider this a tax anticipation note.”
But applying for a loan takes months, according to Danielle Schonbaum, Deputy Director of Administration and Finance. Adding to the process, whether the money comes from the county’s emergency fund or from an outside loan, the county will need a stamp of approval from the state comptroller’s office before adding any debt.
In October, the comptroller did not approve the county’s budget. That means that the state has to assess and approve any new, emergency debt until the end of this budget year.
Another problem is payroll for county employees.
“We know that our payroll is in excess of $30 million a month,” Schonbaum said.
The mayor’s administration said that without an immediate solution, there could be an issue making payroll for the month of November. Schonbaum said the hope is to be able to replace part of the emergency $42 million quickly when property taxes begin rolling in over the next three months.
But it’s unclear how much of the $42 million will be replaced.
“I have not seen a breakdown between budgeted expenses, for which we’re going to get taxes, and unanticipated, unbudgeted expenses, which is what I was told this was, for which we’re not going to get taxes,” Shelby County Trustee Regina Newman said.
County commissioners will discuss the funding need and vote on it at their full meeting on Monday.
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