Smith County auditor warns of ‘tough’ budget process ahead of FY2024 planning

TYLER, Texas (KLTV) - While we’re still about six months away from the start of the next budget year, the Smith County auditor says the FY2024 budget process will be “tough” and advised county leaders to not get too comfortable with their current financial situation.

In the latest comprehensive financial report, Smith County was said to be in “excellent financial condition” and received a “clean” opinion from Gollob Morgan Peddy PC for FY2022.

“That’s the highest opinion we can render for the county. It’s the same opinion we have rendered for the past several years we’ve been working with you,” said Kevin Cashion of GMP.

Among the highlights: a general fund balance increase of $5,528,279. The increase was attributable to actual revenues exceeding budgetary estimates, primarily for sales tax revenue and actual expenditures for FY22, according to Smith County Auditor Ann Wilson.

“I’m glad to see that we were able to add another $5 million to our fund balance, but don’t get too comfortable,” said Wilson at Tuesday’s commissioners court meeting.

Wilson warned commissioners of a tough upcoming budget process. She declined an on-camera interview but did answer questions via email.

“The budget process for FY24 will be tougher due to the rising costs of goods and services in today’s economy,” Wilson said. “Sales tax revenue estimates show a leveling off from the previous years of growth, and careful planning of resources will be necessary as the County takes the first step toward building the new courthouse and parking structure.”

With all that in mind, Smith County Judge Neal Franklin said they’re already telling department leaders to “tighten things up.”

“We’ll have to really look closely,” Franklin said. “I may, as the county judge on that committee, have to say no quite a bit to new requests.”

Internal budget meetings usually start sometime in May, while budget hearings come in June. The next budget year will begin October 1, 2023.

“Even though it’s going to be what she (Wilson) says is a tough year, it’s tough in the fact that they may not get everything they ask for additionally. But we’re going strong. We’re already strong,” Franklin said.

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