Federal failures cast shadow over Haywood budget
Failures in the federal response to Hurricane Helene are still rippling into Haywood County’s bottom line, forcing the county — like most of its municipalities — to build a budget around uncertainty and delay rather than recovery.
County Manager Bryant Morehead’s March 16 presentation made clear that millions in storm-related costs remain unreimbursed, leaving the county to carry the financial burden 18 months after the disaster.
Of roughly $19.2 million in submitted FEMA projects, only about $1.58 million has been received, with more than $17.7 million still outstanding, per Morehead. Much of it remains tied up in pending reviews or federal processing delays.
Helene struck near the beginning of the 2024-25 fiscal year budget. When commissioners passed the first post-Helene budget, effective July 1, 2025, they originally planned to use $10.9 million in fund balance. But that wouldn’t be the end of it — the county ended up having to come out-of-pocket for twice that amount.
“The big one on here is the debris,” Morehead said. “We appropriated $11 million shortly after we adopted the budget, and that’s really driving our fund balance use this year.”
The amended fund balance appropriation for the current fiscal year surged to nearly $24.7 million, more than double earlier projections and underscoring how disaster costs have overwhelmed normal budgeting assumptions.
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Commissioner Jennifer Best pointed out that past criticisms of the county for holding “too much” fund balance have been proven short-sighted.
“In the case of an emergency, where we’re able to respond very quickly because we have the savings account to do it with, what would happen if we didn’t?” she asked Morehead rhetorically.
“It’s frustrating to me,” said Commissioner Brandon Rogers. “I guess I want to go on the record as saying so — that we can’t get this money any quicker from the federal government.”
Rogers, who has traveled to Washington, D.C., several times since Helene with a delegation of regional elected officials and the American Flood Coalition to ask for the money the county is owed, went on to reiterate points he’s made before — bipartisan points about cutting out the “middle man” and pushing federal recovery funding directly to affected counties.
“We’re held accountable every day for money that’s handed down either through the federal government or through the state,” he said. “They need to do the same thing with storm cleanup.”
Morehead explained that the county had paid its vendors in good faith, expecting to recapture those costs from the federal government, and had closely followed instructions on reimbursement.
“It’s putting all of us kind of in a corner of making decisions on what programs we can and can’t fund at the local level while we’re waiting on reimbursements,” he said.
Even as revenues remain relatively stable, expenditures continue to climb. General fund spending has trended upward over the past decade and currently sits at $111.9 million, reflecting both cost pressures and storm-related impacts.
Employee compensation continues to rise through cost-of-living adjustments, merit increases and escalating health insurance costs, projected to increase by $1,800 to $21,800 per employee. Morehead devoted significant effort to illustrate the true costs of employee turnover, justifying the COLA and benefit structure.
Retirement contributions are also increasing, while new federal policy changes are pushing additional administrative burdens onto local government, including expanded SNAP eligibility that requires more staffing.
At the same time, core county obligations are growing. Education funding for Haywood County Schools and Haywood Community College remains a major driver, alongside capital needs like facility upgrades and new projects. Routine expenses such as fuel, utilities, insurance and maintenance contracts are all trending upward, adding pressure to an already strained budget framework.
Public safety costs are also expanding. The county is preparing for additional vehicle replacements, ambulance needs and the ongoing financial impact of the jail expansion, which will require a $2.27 million payment in the coming fiscal year, with only modest declines in interest costs over time.
Meanwhile, economic indicators offer mixed signals. Property tax collections have grown steadily in recent years but declined slightly to $56.6 million in the current budget. Collection rates remain strong, hovering around 98%, but have declined in each year of outgoing Tax Collector Sebastian Cothran’s tenure.
Sales tax performance shows signs of volatility, with recent monthly collections dipping below prior-year levels. Investment earnings, once a strong supplemental revenue source, are declining as well, further tightening the county’s financial outlook.
Against that backdrop, the county is also seeing increased demand for services. Medicaid enrollment has climbed steadily, reaching nearly 20,000 residents, while foster care numbers and dental patient visits continue to rise, reflecting broader economic stress across the community.
Morehead’s presentation wasn’t the end of budget discussions. On May 4, Morehead plans to present what’s called the “manager’s budget,” which will be closer to the final product. He hopes to have the final product ready for approval by commissioners on May 18. Local governments have until July 1 to pass annual budgets.
