Budget and Finance Committee members on Oct. 22 challenged county administrators to explain why the Tennessee comptroller did not approve Shelby County’s FY2026 budget and pressed for new policies and clearer lines of responsibility ahead of the FY2027 process.

Danielle Schonbaum, deputy director of administration and finance, told the committee that total general-fund revenue through Aug. 31 was about $21.7 million, down roughly $4.6 million from fiscal 2025 and driven largely by the timing of property-tax collections. Schonbaum said property-tax receipts were $5.3 million through August versus $11.8 million at the same point last year and reminded commissioners that the bulk of property taxes normally arrive in December through February.

Committee members then shifted to a separate, higher-profile matter: a letter from the state comptroller that said the comptroller would not approve the FY2026 budget. Harold Collins, chief administrative officer, read excerpts of a response prepared by Chief Financial Officer Audrey Tipton and described immediate changes the administration had taken, including adding personnel to the county’s budget team and committing to follow the comptroller’s instructions for FY2027. Collins said the administration ‘‘takes full ownership’’ and will resubmit financial filings in the form the comptroller requests.

Several commissioners pressed for more specifics. They asked why a draft submission to the comptroller, which might have caught technical errors, was not filed and whether personnel had been disciplined. Collins said personnel actions were taken but that disciplinary matters are personnel records and therefore confidential. Schonbaum told commissioners that finance had not had time to reconcile numbers in the Circuit Court clerk’s request to add four full‑time employees and therefore could not recommend immediate use of general‑fund balance; the committee later sent that add-on request to the full commission “without recommendation.”

Circuit Court staff said first-quarter operating fees have exceeded projections: Fred Doris, an administrative assistant in the Circuit Court Clerk’s office, reported $545,715 in operating fees for the first quarter and said that put the office at 38% of its projected annual goal. Michael Burnett Joyner, chief administrative officer in the Circuit Court Clerk’s office, recounted that the commission approved use of 2024 fee overages for the clerk’s positions but that the positions were not filled after the mayor’s office chose not to execute the personnel actions. Joyner asked for alignment of finance and the clerk’s office before the request returns to the commission.

Other committee business included approval of contracts and appropriations tied to court technology and infrastructure: the panel recommended a contract with Customized Solutions Company for business-services analysis and needs assessment for the county courts (not to exceed $200,000), a Nutanix infrastructure upgrade (about $1.06 million), and maintenance agreements for court case‑management systems (Venu Government Systems and others) with combined initial‑year costs in the low six figures. Sandra Perry, chief information officer, and Dennis Boyce, an IT manager, briefed commissioners on the plans and told members these procurements are intended to replace aging systems and limits support disruptions.

Why it matters: The comptroller’s refusal to approve a county budget is an unusual and consequential step that can complicate business and borrowing, and committee members said they want binding process improvements — clearer draft review, better coordination with Memphis‑Shelby County Schools on reporting, and better internal controls — so the next budget cycle satisfies state requirements and avoids leaving the next commission with unresolved problems.