Faced with a significant employee turnover rate – especially in the Sheriff’s Office – the Hamblen County Commission did some finagling Thursday evening as it worked to settle its budget for the 2026-27 fiscal year.

Employee turnover high

Employee turnover has become a significant issue in Hamblen County.

Losing six employees from the Hamblen County Clerk’s office resulted in the loss of 40% of the department’s staff.

The departure of five Circuit Court staff members came meant the office lost 33% of its people.

Still, the Hamblen County Sheriff’s Office has borne the brunt of employee turnover.

A total of 17 corrections officers, or 17% of employees left the Hamblen County Jail. There was also one courtroom security staffer leave. In addition to these, the Sheriff’s department lost 7 employees or 11% of staff including deputies, SRO officers, and on administrative position. deputies, or 11% of uniformed personnel.

The Sanitation Department has experienced eight employee departures while six left the Highway Department. Some of these positions require a Commercial Driver’s License for positions, such as brush pickup and bulk waste disposal.

The Maintenance Department had one employee leave, reducing the department by 14%. One Work Release- Probation position resulted in a 13% staff reduction in that department, as well as two EMA positions and three Recovery Court positions.

This left the commission looking at ways to staunch the bleeding.

The Budget So Far

Estimated revenue from all sources within the General Fund totals $35,130,099. Estimated expenses as presented are $37,289,481, leaving a deficit of $2,159,382, Budget Director Amanda Hale said.

By using fund balance monies to purchase a series of capital items, the county will be able to reduce that deficit to $1,763.382 Those capital items include three Ford Explorer Police Interceptor vehicles at a total cost of $174,000; $92,000 for the Morristown-Hamblen Library Fund to allow for replacement of the library roof and plumbing repairs; $40,000 for replacement of air conditioning units on the old Courthouse; and $90,000 for reroofing and parking lot improvements.

A slight reduction in the deficit came from the removal of a currently unfilled Magistrate’s position in both General Sessions court offices that will save the county $48,305. in penny value.

Hale noted that each penny on the property tax rate is valued at roughly $279,000 for FY 26-27. She added that by moving property tax monies allocated for the County’s Debt Service to the general fund and replacing them with interest income, the county can realize a savings of $500,000.

However, that savings could be used to fund a proposed 3% Cost of Living Increase to help the county slow the turnover rate, which would result in a cost of $524,065, off-setting most of the savings.

Funding adjusted for nonprofits

As the commission considered funding for nonprofits, the Budget Committee voted to make several adjustments.

The Women’s Jail to Work program is being funded $200,000 for FY27 using funds from the Opioid settlement. Other agencies funded from the Opioid settlement include Stepping Out ($10,000) and the Hamblen County Drug Abuse Coalition ($25,000).

All four Hamblen County volunteer fire departments will be funded at $75,000 each after rival proposals to increase funding to $80,000 or reduce funding to $65,000 both failed.

Last year, the Commission bought an ambulance for Morristown-Hamblen EMS to replace an older vehicle that had aged out. This year, the commission granted a $50,000 stipend for another ambulance, also from Opioid funds.

The New Hope Assessments for the McNabb Center were granted for $6,600. The Morristown-Hamblen Childcare Center also received reduced funding from a requested $25,000 to $12,500.

Morristown City Council had given the center $21,530 on first reading last week.

Friends of Hospice was voted a $10,000 donation by the Commission.

Funding denied for several agencies

Several agencies were denied funding for the FY 27 year.

ALPS Adult Day Services will not get a requested $7,000 donation. SafeSpace, a shelter for victims of abuse based in Sevier County was also denied a funding request of $10,000. SafeSpace had taken over serving Hamblen County when the former CEASE Shelter ceased to function.

Helping Hands Clinic was denied a funding request of $10,000, Lakeway Achievement Center was denied a funding request of $3,000, Senior Citizens Home Assistance Service was denied $5,000 in funding.

Central Services was denied a $5,000 donation. The same held true for Rose Center ($5,000), HOLA Lakeway ($15,000), The Morristown Task Force on Diversity ($5,000), Ready by Six ($5,000) and Encore Theatrical Company ($10,000).

The city of Morristown’s Parks and Recreation Department had asked for $500,000 this year but was given $150,000 by the Commission. County officials said the department went up on fees for children to participate in various sports with a $70 per child fee for county residents and a $50 per child fee for Morristown city residents.

The Hamblen County Emergency Communications District, which is already facing a budget deficit due to the vetoing of a Legislative Bill that would have given local districts a $5 annual increase per customer will be discussed after July 1 when the City and the County can collaborate on additional funding.

At current levels, E-911 would be given $270,752 by the budget committee.

COLA Raises

Near the end of Thursday’s meeting, Commission Chairman Bobby Haun suggested a 10% raise for all Sheriff’s Department employees to stem deputies leaving, plus a 3% COLA raise for other county employees.

The plan to pay for that increase includes moving a total of 6 pennies – or roughly $1.7 million – from property tax rate designated for the School System to the county’s General Fund with the hopes that excess sales tax can be used to backfill the deficit for the schools and meet maintenance of effort.

“Let’s be honest, we’re going to have sales tax no matter what,” Haun said. “We complain every day about the gas price, grocery bills, but it’s not stopping anyone from going to Walmart every day. I don’t want to raise taxes.”

Hale said the school system would use $2,553,359 from its fund balance this coming year to balance the school’s FY 26-27 budget.

Generally, using fund balance monies to cover reoccurring costs is considered a short-term option at best, Hale said.

“This year, we think that they’re going to have $2 million extra,” Hale said. “If they’re using $2.5 million in fund balance this year for reoccurring costs (such as salaries, benefits), I’m going to expect any kind of increase in reoccurring costs next year (Cost of Living or Insurance), it’s not going to get any better.

“They’re going to use all of the fund balance they can use,” Hale said.

Cutshaw said that there is history with these kind of moves and it can backfire. If Sales Tax revenues were to dive, the county would be responsible for covering the monies owed to the school system, “We’re creating a vacuum where we’re going to have to answer this bell at some point,” he said. “One way or another, this bell is going to have to be rung.”

The 10% raise for HCSO employees passed on a 12-0 vote while moving the 6 pennies from the School System’s fund passed on a 9-1-1 vote with Commissioner Mike Richardson abstaining.

The decision will not be finalized until the full commission passes the budget at a later date.