The 2026 general fund expense budget includes operating expenses for 25 departments and other elected offices, capital improvements and other projects. County Administrator Judi Boyko noted the revenues might seem a bit low, but the commissioners earlier this year agreed to roll back half their inside millage or around $12.5 million.
“The $12.5 million equates to $100 of savings for every $100,000 assess value,” she said. “So if somebody’s home is worth $100,000 they should see a reduction of $100 directly on their tax bill and scalable from there.”
The cost to operate county government — for the departments and offices funded by the general fund — totals $125 million. The largest percentage increase was nearly 17% or $1.2 million — bringing the total up to $8.6 million — for the commissioners’ administration. Boyko explained that the county did a “robust” wage study last year and implemented raises at various times this year, so the full effect will be felt in 2026. Several union contracts were also ratified.
“These were not unnecessary increases to wages, these were based on market inflationary increases over the last five years,” she said.
In terms of dollars, the sheriff added $2.6 million to his general fund budget bringing the total to $51.6 million — his total budget amounts to $61 million including operations funded with outside revenues — so he could beef up staff to handle the new contract with U.S. Department of Customs and Immigration Enforcement.
The commissioners instituted a hiring freeze in May for the rest of this year and next. They are also returning to the traditional two-plus-two pay for performance raise program, after approving some big raises suggested by the wage study. The two-part performance pay formula calls for pay hikes up to 2% added to an employee’s base pay and another 2% available in lump sum payments.
Of the 13 offices whose budgets are backed with general fund dollars that mentioned raises in their budget submissions, nine indicated they’ll stick with the two-plus-two plan. The others expressed a desire to up their employees pay by 4% to 6%.
The budget also has dollars earmarked to improve buildings, upgrade technology and other capital projects. Those total $9.4 million. Boyko said the commissioners have spent roughly $30 million over the past five years on capital improvements.
Another $25 million has been approved for larger projects like the annual $15 million allotment for the capital reserve fund, which is currently paying for the new 911 dispatch/coroner’s facility and helping the county engineer do more road projects.
The county also sets money aside every year for emergencies. They maintain a nine-month reserve of $93.9 million and $16 million in the budget stabilization fund.
On the revenue side investment income and charges for services are expected to jump considerably next year, with an anticipated $7.5 million increase for interest on investments and $4.7 million for service fees. That fee hike is largely coming from Sheriff Richard Jones’ office, he negotiated a 54.4% increase in the fees to house federal prisoners including ICE detainees.
The main general fund revenue driver is sales tax, they budgeted $59 million for next year despite culling nearly $63 million this year. Boyko said sales tax proceeds have increased an aggregate 24% over the past five years, but those numbers will “plateau” in the future unless people start spending more or “new-to-market” retail is developed.
“If you get another Dollar General or another Kroger, it’s not going to generate more money it’s just going to displace and relocate where you shop,” she told the Journal-News.
Butler is one of four counties in the state with the lowest sales tax rate at 6.5%, Boyko said raising it isn’t likely an option with these commissioners.
Investment income is another volatile revenue source, especially as interest rates are starting to drop.
Boyko has been cautioning the commissioners for two years that if spending and revenue collections continue to grow at the current rate, the county’s general fund budget will require carryover to balance, meaning it will no longer be “structurally balanced” which they have required for years. She predicts that’ll occur in 2030 if changes aren’t made.
She told the Journal-News they must address the expense side of the equation.
“Over the next couple years, it is imperative the board of commissioners assess the scope and delivery of services to delineate among statutory, discretionary and complementary, although not mandatory but determined to be essential, to serve the needs of Butler County’s residents, businesses, taxpayers, and vulnerable needs populations,” she said.
Personnel costs are estimated at $88.5 million next year which is a $4.3 million or 5% increase over this year’s budget. Commissioner Don Dixon said he wants to make sure they consider implementing AI as they look at the expense side of the ledger, “we have to do things differently, that’s evident by plateauing in 2030.”
“I think some form or fashion as our workforce gets smaller as far as retention and retirement we ought to have a way not to replace those folks and maybe do something with technology, AI,” he said. “I think we need to make that step, we need to look at AI and see if that can help us.”
Commissioner T.C. Rogers started talking about “right-sizing” county government a couple years ago and set $150 million as a likely ceiling, “we’re at $139 (million) now, so we don’t have much margin here.”
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