Deputy comptroller stresses Van Buren’s financial crisis during commission meeting

Jason E. Mumpower, deputy comptroller for the Tennessee Comptroller of the Treasury, attended the monthly meeting of the Van Buren County Board of Commissioners, on June 23, to deliver some grave news and issue a stern warning.

Mumpower had spoken with the county mayor, Greg Wilson, as well as the sheriff and the budget committee recently but said he appreciated the opportunity to address the entire commission about the financial condition of Van Buren County.

“Van Buren County is in very serious financial condition,” he told the board. “I have seen some mixed messages coming through on some news articles saying that it’s not that bad. But I would tell you — it IS that bad. You’re in worse financial condition than any other county in this state. The key to getting out of that bad shape is to be honest about it with your citizens and with yourself.”

Mumpower briefly reminded the commission that the county is running out of money because their expenditures are outpacing their revenues, causing their cash and fund balances to dwindle. Additionally, the county has been borrowing money they are having trouble paying back on time.

“A pretty simple thing that can’t be ignored – you have $8.9 million in debt outstanding,” Mumpower said.

He told them this is not a problem that occurred overnight but rather it was because of a series of decisions made by both the county mayor and the commissioners.

“The good news is – you have an opportunity right now to make a series of decisions to get yourself out of the situation. I think that is where you are,” said Mumpower. “The opportunity you have right now is to pull Van Buren out of the ditch. It is damaging the good name of your county, and you want to be responsible to the citizens that elected you. Tough decisions have to be made.”

He went on to tell them that while the problem – spending more money than they are bringing in and not having a balanced budget – is simple, the solution is clear as well.

“You can cut expenses, or you can raise revenue,” he said.

Mumpower informed Van Buren County commissioners that the state legislature is sending the county $684,000 in unrestricted, one-time money that can be used to help get them out of their current situation.

“However, I will tell you, if you don’t use that money correctly – while it may seem like manna from heaven – it can make your condition worse,” he warned. “You need to use this money to provide working capital for your basic operations and you must resist the urge to spend it on pet projects.”

He reiterated that the budget is their most important business, and they need to be realistic. According to Mumpower, the county has shown a pattern of overestimating their revenues in recent years. He reminded them that once a budget is passed, they must stick to it.

“You cannot halfway through the year continue to approve new spending projects,” he said. “If you must amend your budget, you should be very careful to make sure you have enough money to make that adjustment.

“You have been spending and then amending. You must amend before you spend. It’s as simple as A comes before S. Amend before you spend. Acknowledge and check, and make sure you have the money before you spend it.”

Mumpower stressed that the consequences of not taking action are not favorable. Tennessee law gives the office of the comptroller the authority to make spending decisions for a county if they don’t have a balanced budget. He said they have never had to actually exercise that authority before nor do they want to do that now.

“The only thing I can assure you about is that you won’t like it, and I can assure your citizens won’t like it,” he told the commission and then admonished them for not facing the facts. “We are here to assist you in any way. You have to know you have a problem. Telling the newspaper or citizens it’s not as bad as we’re saying is tainting over the truth. It’s not just bad, it’s the worst in the state.”

One of the commissioners addressed Mumpower about the statements made to the newspaper.

“How did the Sparta Expositor get in on this?” the commissioner said. “How did they put all that in the paper and embarrass us?”

The questions from the commissioner referred to an article published after Mumpower held a teleconference with Mayor Wilson and the budget committee.

“We have been through the last week of pure hell,” the commissioner said. “We have been asked to resign. Our mayor has been asked to resign. He has been humiliated. We have been humiliated. All because someone invited the Sparta Expositor to come in on a conference call. Did you make it [the phone call]?”

Mumpower informed the board that he had not talked to local media outlets but that public notice of such meetings is commonplace.

“I have not talked to them,” Mumpower said. “Anytime the comptroller’s office participates in a public meeting, public notice is given of that meeting. I don’t think you want your citizens to be in the dark.”

“I want to know the truth,” the commissioner responded.

“Truth is you’re in pretty bad shape, and now is not the time to be embarrassed,” Mumpower said. “Now is the time to be embolden and take the bull by the horns and get yourself on the right track.”

“I would like for you to tell me is the rumor true that your office made a $300,000 mistake?” the commissioner said, asking Mumpower about the money coming from the state legislature.

“If your question is about the amount of the grant, our office had nothing to do with that,” Mumpower responded. “The legislature – until really the last hour – debated the amount of money they were going to grant cities and counties across the state. When those negotiations were completed, the number for Van Buren County was 683,000.”

It was noted that Van Buren may not have been listed as a distressed county and that this listing may have reduced the dollar amount that they would receive, which the commission had thought would be closer to $900,000. Mumpower, again, informed them that this was not the responsibility of his office. His office was simply reporting the number that had been given to them.

A citizen, who was listening to the meeting via teleconference, asked how long the mayor had to get the county back on track, but Mumpower reminded everyone that the responsibility doesn’t fall to Wilson alone.

“You, as commissioners, need to demand more communication,” Mumpower said. “Mr. Mayor – I’ve heard you say the buck stops here, and you’re responsible. But that’s not true. You have an important job, but you as commissioners have a job equal to the mayor’s. It’s not all on the mayor’s shoulders. You, as commissioners ,have to pass the budget. You’re in this together. You, as commissioners, need clear and transparent access to everything happening in this county. It is critically important that you have that open communication.”

The question was also asked if the citizens should request a forensic accountant and hire somebody to oversee the budget.

“That’s not for me to say,” Mumpower answered, but also said that they believe the commission can work through the problem. “With the assistance of the county finance director and with the assistance of the office of the comptroller, I feel they can handle it. It doesn’t take a fancy accountant. It just takes a little courage to make some tough decisions.”