Shelby County budget struck down by Tennessee Comptroller
The Tennessee Comptroller of the Treasury has rejected Shelby County’s 2026 budget proposal with no chance of rescission.
MEMPHIS, Tenn. (WMC) - “There are 95 counties in Tennessee. Shelby County is the largest county by population in the state, and it’s the only county where this is the issue.”
That’s why John Dunn, the Director of Communications at the Tennessee Comptroller’s Office, says he’s surprised that Shelby County has been unable to submit an adequate budget for the last five years.
In a letter to Shelby County Mayor Lee Harris, Tennessee Comptroller Jason Mumpower listed the specific reasons behind the rejection, including a failure to provide: all detailed budgets, explanations for negative balances, and beginning cash and fund balances for all county funds.
A prominent issue was with funds associated with Memphis-Shelby County Schools. In response, MSCS said they submitted all required budget documents to the commission ahead of schedule and were not notified that anything else was needed.
When asked if the comptroller’s office would be open to helping Shelby County create an adequate budget, Dunn said they already met with one of the county’s chief budget officers in April, who was told specifically what was needed to get their budget approved.
The Shelby County Commission also tried to help prevent another rejection by passing a resolution in February 2025, offering a set of guidelines that should be met by all future budgets. However, despite these two things, the budget still didn’t meet the mark.
Now, as a result, Shelby County must wait roughly eight months before taking out loans or incurring debt — something John Dunn says, “could be a consequence that could have some ramifications, we just don’t know.”
But Shelby County Mayor Lee Harris says this is something they’re not worried about, saying Shelby County had no plans to borrow at all anyway, and that this restriction won’t impact any plans in progress.
The mayor also said he’s confident they can address the concerns raised in the comptroller’s letter.
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