Daviess County Fiscal Court reviewed a proposed $120.5 million budget for fiscal year 2026-27 during a work session on Wednesday. The plan largely maintains current operations while preparing for significant capital projects, though a request for a substantial funding increase from the Economic Development Corporation raised some questions.
The proposed budget keeps tax rates unchanged and holds the General Fund relatively steady, with revenues adjusted based on historical trends rather than growth.
Early in the meeting, County Treasurer Jordan Johnson outlined several key assumptions, including a 2.7% cost-of-living adjustment, declining retirement contribution rates, no new debt issuance, and continued paydown of existing liabilities.
He also highlighted several pressures shaping the budget, including a projected $300,000 drop in county road aid due to gas tax changes, declining jail revenues tied to fewer state and federal inmates being housed, and broader concerns about inflation, fuel costs, and state funding.
“General fund revenues are expected to remain steady with no projected increase in property taxes,” Johnson said.
Despite the steady approach, several internal transfers are increasing, including a $4.53 million subsidy to the jail fund (up from $3.86 million) and a $2.42 million transfer to the road fund (up from $1.75 million).
Johnson said the jail increase is driven primarily by reduced revenues and salary adjustments, noting that declining revenue is tied to fewer state and federal inmates being housed at the Daviess County Detention Center.
“We are at the mercy of placement agencies … it’s the number of inmates,” he said.
The proposed budget includes the following totals by fund:
- General Fund: $67.7 million
- Road Fund: $6.64 million
- Jail Fund: $12.18 million
- Economic Development Fund: $1.77 million
- Opioid Settlement Fund: $1.95 million
- Solid Waste Fund: $27.7 million
- Bond Fund: $1.93 million
- Other smaller funds bringing the total to $120.5 million
While most discussion reflected the steady nature of the budget, commissioners spent time questioning a proposed increase in funding for the Greater Owensboro Economic Development Corporation.
The agency requested $373,110, a significant jump from prior years. Over the past six fiscal years, the county has typically allocated between $184,000 and $204,000 annually, with the exception of $92,000 in the 2023-24 budget.
Commissioner Chris Castlen said the request appeared excessive compared to those past funding levels.
“It’s just way above what I believe to be necessary for them at this point,” he said, adding that previous funding levels seemed more appropriate.
Judge-Executive Charlie Castlen said his understanding was that the increase is intended as a one-time request rather than a recurring annual amount. He said GOEDC President and CEO Claude Bacon hopes to use some of the additional funding for increased visibility at industry events.
“One place we’ve been absent from, if you will, from a local community representation is different site development conferences, where we can be seen up front, one on one with the site development people,” Castlen said. “I know that’s one of the things that (Claude is) hoping to be able to do with more cash in his budget.”
Commissioner Janie Marksberry asked for more specific details on how the additional funding would be used, including whether it would involve hiring additional staff. Charlie Castlen said there are no plans to add personnel.
After several minutes of discussion, the court agreed to tentatively keep funding at $184,000 for now, while leaving the door open to revisit the full request if more detailed information is provided.
In a message to Owensboro Times, Bacon said, “GOEDC is appreciative for the initial funding, and I look forward to meeting individually with each commissioner and explaining in more detail the strategy and critical need for the additional funding.”
The proposed budget also includes roughly $30 million in capital expenditures, driven largely by the construction of a new public safety facility (a $20 million dollar item on the budget) and infrastructure investments.
Another major project — a renovation of the county jail that’s expected to cost north of $46 million — was discussed but is not yet included in the budget because final costs have not been determined.
Johnson said the project will be added through a future amendment once bids are finalized and the court decides how to fund it.
In addition to core operations, the budget includes several targeted additions, including state-funded appropriations for a public safety facility and food warehouse project, along with local funding for childcare expansion, the Senior Community Center, and a veterans monument.
Overall, the proposal reflects a continuation of current services with limited changes, but with growing pressure from capital investments and shifting revenues.
