Following a positive financial review showing spending is under budget, the discussion at the Butler County Commissioners’ meeting Wednesday turned to the potential impacts of the state’s ongoing delay in approving a 2026 budget.

Budget director Ann Brown said expenditures at 45% of the budgeted allocation and revenue at 82% of the budgeted anticipation through June 30, slightly more than halfway through the year. Real estate tax collections were at 94%, and were 97.5% as of Aug. 19, she said.

Commissioner Kevin Boozel then asked if money could be pulled from investments or accounts that pay interest, and whether a revenue anticipation loan would be needed.

A little cash flow could come from a certificate of deposit that matures in September, but investments could have to be pulled if Children and Youth Services doesn’t receive its quarterly payment of $2.5 million that usually comes from the state in August, Brown said.

“The big one is CYS,” Brown said. The department has a monthly budget of $3.55 million, she said.

The state is making payments to cover human service contract payments due in July, but is not making payments that are due in August, Brown said.

She confirmed that money market fund investments are earning interest, but Boozel said he is concerned over losing that interest if the county has to pull those investments.

Brown said the domestic relations department just received its payment for April from the state, but those payments are typically help up several months.

A state website where Brown said she can track the status of payments due from the state shows that payments that were waiting to be released before June 30 are slowly being released, including payments to CYS. The state will now start making the payments for July, which would normally be made in early August, she said

The secretary of the state Department of Human Services told the commissioners to make sure county invoices were up to date so the county Human Services Department has cash flow, said Leslie Osche, chairwoman of the commissioners.

When state budget approval has been delayed in the past, the state expedites payments to counties after the budget is finally approved, Brown said.

Osche said county departments have cash flow from state payments that were due in June, so no investments are being pulled.

“It will start catching up with us,” Brown said. The tipping point is the end of the fiscal year on Sept. 30, she said.

Then the county will have to pull investments, which will cost the interest the investments would earn, Osche said. The state will not reimburse the county for the lost interest, she added. She said there are no current plans to take out a revenue anticipation loan.

The commissioners approved a resolution calling for the governor and Legislature to work together to finalize a budget. The resolution says the Legislature is on recess until after Labor Day leaving counties unable to plan for the 2025-26 fiscal year.

“Be it further resolved that the governor and the Legislature should continue working without further interruption or recess until a budget is in place, ensuring the fiscal stability of counties and protecting our mutual constituents from undue financial strain,” the resolution reads.