SHELBY COUNTY BOARD OF COMMISSIONERS

 

June 3, 2020

The Honorable Justin P. Wilson

Comptroller, Tennessee Comptroller of the Treasury
State Capitol

Nashville, Tennessee 37243-9034

Mr. Comptroller,

We are writing you today to ask for some guidance as we work on the passage of the
Shelby County FY2021 Budget this month. We know it is the Shelby County Board of
Commissioners? job to pass a balanced budget on or before June 30, 2020. The Mayor can
proposedispose timely and accordingly. We were elected to make the
dif?cult decisions to prevent any form of ?nancial disarray. It can be recalled that the City of
Memphis, our neighbor across the street, was kicking the can down the road until there was
intervention by your of?ce. Now, Memphis is showing remarkable progress with their ?scal
obligations. Our hope is that the same intervention does not have to happen with us.

We are requesting some direction as we ?nalize our budget which will seek your
approval. Our concerns lie on the chameleon-like changes of ?gures that we receive from our
Finance Division throughout our budget hearings that we as the Commission Budget Chair and
Vice-Chair see on each occasion we meet, virtually and otherwise. Several of our colleagues
have expressed that same frustration when we are not able to get questions resolved with clearly
de?ned responses so we can make the best, educated decisions as a legislative body as we
reconstruct the FY2021 proposed budget.

It is incumbent upon ourselves to pass a balanced budget that contains certain elements
that provide the framework necessary for your of?ce to approve Without issue. To quote a
phrase you said to the Memphis City Council on Tuesday, June 3, you commented that ?no
accounting tricks? are allowed. We as the Budget Chair and Vice-Chair are worried that the data
provided to us by Shelby County Mayor Lee Harris and his Chief Financial Of?cer could
plausibly have those aforementioned tricks because the story that is being told with the numbers
continues to modify itself with very little consistency. In the end, our goal is to ensure that the
Shelby County FY2021 Adopted Budget is free of inconsistencies and has the ?nancial integrity
required to meet obligations to the credit agencies, local public safety, our pension, and the
unreserved/unrestricted fund balance. I have con?dence that a balanced budget will be passed

VASCO A. SMITH, JR. COUNTY ADMINISTRATION BUILDING
160 North Main Street, Suite 600 . Memphis, TN 38103 - 901?222-1000 - Fax 901-222?1002

 but we want assurances by your of?ce that the documents that are presented to
your of?ce pass your smell test.

Additionally, Shelby County accepted a signi?cant amount of CARES Act funding, in
the amount of over $49.9 million. As you know, there are de?nitely more needs than the monies
received. With the money comes the rules. Although regulations and suf?cient guidance has not
been given, we know as a body that these funds are restricted to uses permitted by the Act.
Moreover, we are aware that any dollars spent incorrectly would have to be repaid. It has been
brought to our attention that the Memphis City Council is working on legal direction to proceed
with their CARES Act spending because of the various amendments and extra spending by
Council members. This is different from the course that Shelby County Administration wants to
follow, as their interpretation of the law is that the County Mayor makes the ultimate decisions
on the In other words, the City of Memphis appears to give more latitude to the City
Council to disperse funds, while the Shelby County Mayor states that he has full autonomy.
Notwithstanding the disparity, our concern is what body will be fully accountable in case any
funds are used for purposes disallowed by the CARES Act. We are asking for guidance to
prevent future ?nger pointing, which no one wants.

Thank you very much in advance for acknowledging our letter and our concerns. Any
guidance you can offer to us at this time would be greatly appreciated.

Sincerely,

 

  



Eddie S. Jones, Jr. Edmund Ford, Jr.
Budget Chairman Budget Vice Chairman
District 11 District 9