Teton County County Clerk Maureen Murphy has been running a tight ship this spring.
That’s because the county’s budget for the next fiscal year is due at the end of June — the same timeline for figuring out how the county will address its anticipated revenue shortfall of $3.8 million.
“I sat down with all the offices and departments and looked at budgets where they could cut,” Murphy said.
According to the clerk, that means discretionary spending, such as out-of-state training for new hires, are, for the most part, on pause across departments.
About $3 million to $3.25 million of that is a property tax shortfall, according to a county press release. The county points to reductions implemented by the state Legislature, including the homeowner’s property tax exemption program, a 25% cut to the first $1 million of a property’s fair market value.
Town
The town council faces a similarly sized deficit, though its general fund budget is about half the size of the county.
This fiscal year, the Jackson Town Council will use about $3 million into savings to pay for services, according to its recommended budget. While the town has the money to pay now, it’s facing what some councilors call a “fiscal cliff” if the trend continues.
Before 2021, the town collected no property taxes. It has the potential to raise the rate 16 fold, from 0.5 to 8 mills.
Councilors are debating whether to raise property taxes or place the burden more on tourists by raising sales and lodging taxes.
County
Teton County property owners could see tax rates increase by one mill, which is the one dollar for every thousand of a property’s taxable value.
Should Teton County raise property taxes, it would be the first time doing so. Commissioners have kept flat or dialed back back tax rates since 2019, a reaction in large part due to property values soaring during the COVID-19 pandemic.
The move isn’t anticipated to be politically popular, but the county said it’s already “cut budgets to the bone,” according to a county press release.
“Elected Offices and County Departments submitted flat or reduced spending within their offices or departments,” the release said.
The county is taking some cost-cutting measures, such as delaying some capital projects and removing new full-time employee requests.
Raising the 6.89 mills the county currently collects to 7.8 mills would raise another $3.8 million, “which about matches exactly the deficit that we are predicting,” said Mark Newcomb, who chairs the Teton County Board of County Commissioners.
Sales tax and lodging tax revenues jumped during the COVID-19 pandemic. Both are projected to remain flat from fiscal year 2024 to 2025. Newcomb added, however, that early projections show summer bookings are up.
Commissioners vote on the budget in late June which could influence whether they approve a property tax increase as soon as August.
