MEMPHIS, Tenn. — A letter sent to Shelby County commissioners in late September from the Tennessee state Comptroller outlines what they say are years of discrepancies in the county's budget, which could cause future budgets to be rejected by the state.
The letter, obtained by ABC24, outlined discrepancies in Shelby County budgets going back to fiscal year 2022, including incomplete budget submissions to the state.
"The submission was not presented in a manner that allowed for a clear and efficient review by our office," the letter said.
Shelby County commissioners told ABC24 they were under the impression the past four budgets had been approved, but the letter from the Comptroller's Office said those budgets were only conditionally approved, and require additional information for approval.
The Comptroller's Office said if the county does not properly submit next year's fiscal year 2026 budget, that budget would be rejected, meaning the state would not be able to appropriate funds for Shelby County programs and operations.
That means future school and infrastructure projects could see funding pulled if the county budget is rejected.
The Comptroller's Office outlined six points the Shelby County commission needs to include in future budgets for them to be approved:
- The name and email address for the County Mayor should be included in the cover letter.
- A detailed budget should be included for all funds that are included in the resolution, including school funds, these schedules should be at the line item level and be split up by department.
- For any operating fund ending the year with a cash balance below 15% (or if it meets any of the other criteria identified in the Budget Manual), a cash flow forecast must be provided. If a fund is budgeted to end the year with a negative fund balance, a written explanation for the negative balance should be included.
- Beginning cash and fund balances must be included for all funds, this can be completed in the budget summary schedule.
- Property and sales tax forecasts must be included.
- All detailed schedules should correspond to what was appropriated in the adopted resolution.
We've reached out to the Shelby County Commission for a statement and will update this story when they reply.