By Billy Davis

Panola County supervisors approved their budget for the 2012-2013 fiscal year Monday morning — but not before they were confronted with a worrisome future 12 months from now.

Panola County government will likely be short $1.8 million this time next year, when property taxes from LSP Energy are no longer on the tax rolls, County Administrator Kelley Magee admitted.

LSP Energy declared bankruptcy in February and its assets have been purchased by South Mississippi Electric Power Association.

The purchase by a tax-exempt power distributor means South Mississippi Electric will be able to forego paying property taxes to county government and South Panola schools, The Panolian has reported.  

Crenshaw resident Bob Bryant confronted supervisors over the issue, suggesting that county government should have slashed its spending to prepare for the troublesome budget this time next year.

Magee said the county budget shows a $291,577 increase over the current fiscal year.

“I’m just wondering if you’re better off trying to tighten your belt now,” said Bryant, who frequently attends county meetings and is well known to the county board.

He was the only person from the general public who was present at the public budget hearing.

Bryant pried the $1.8 million figure out of Magee and convinced her to state on the record the financial situation looming for county government. South Panola faces a similar shortfall.

“So there’s no money from the power plant past this year?” Bryant asked.

“No,” Magee replied.

“It will have to be made up somewhere else?” he asked.

“Yeah,” Magee replied.

Bryant also sought to know how a $1.8 million deficit would impact departmental budgets next year, but Magee explained the figure is divided among levies and she did not know those figures.

Magee also said she did not know how much supervisors would need to raise millage next year to make up the projected $1.8 million deficit.

 “Kelley has done a good job for several years pulling rabbits out of a hat,” Bryant told the board. “But sooner or later you’re going to run out of rabbits.”

Supervisors voted unanimously to adopt the 2012-2013 budget. The county board also voted 5-0 to accept millage rates for the county, and for the North Panola and South Panola school districts.

The countywide tax levy will be 62.21 to fund county offices, public libraries, the road department, and help fund Northwest Community College in Senatobia.

 South Panola’s tax levy is 56.43 and North Panola’s is 59.70.

Budget figures provided by Magee show Panola County government is expected to bring in $20.7 million in revenue during the coming fiscal year. Sixty-one percent of that total, $12.6 million, comes from local taxes.

A second pie chart shows 38 percent of tax revenues fund public works: roads and bridges, Panola County Solid Waste, and the county airport.

The second-highest expenditure is 31 percent to fund the sheriff’s department and jail, civil defense, and county constables.