‘Not keeping pace’: Johnson County leaders warn of slowed revenue growth

JOHNSON COUNTY, Kan. (KCTV) - Financial leaders in Johnson County have warned that revenue may not be keeping pace with expenditures based on a new proposed budget.

On Thursday, May 15, Johnson County, Kansas, Manager Penny Postoak Ferguson said she presented a proposed 2026 budget to her peers. The new budget included no mill levy increases, no new full-time employees for the county and a strong focus on fundamental programs and services.

County leaders noted that the proposed budget of $1.9 billion includes $1.39 billion in expenditures - an increase of 1.45% from current expenditures and $507.9 million in reserves.

Local officials indicated that reserves help with single-time needs, emergencies and unforeseen circumstances. They also help maintain the county’s AAA bond rating from all three major rating agencies, which has put Johnson County in the top 2% of all counties in the nation.

Despite an uncertain economic climate, county leaders said that the proposed budget aligns with the Board of County Commissioners’ Focus Areas and from annual community surveys. The proposed budget invests in the capital assets of buildings and infrastructure, as well as the workforce, and maintains services.

“As the county navigates revenue and expenditure challenges, our approach to the 2026 budget has been centered on the core fundamentals of programs, assets and our workforce,” said Ferguson. “We are committed to maintaining existing services, ing for inflationary impacts on food, medical contracts and commodities. It is also essential to take care of our existing assets, such as buildings and infrastructure, by appropriately funding ongoing capital replacement schedules.”

Officials noted that the proposed budget includes a flat total mill levy of 24.125 mills. The proposed levies are 17.286 mills for the county, 3.816 mills for the Library and 3.023 mills for the Parks and Recreation District.

The proposed budget also forecasts a 6.12% assessed valuation increase after appeals - a drop from the 6.78% growth for 2025. Other assumptions include slowed revenue growth in sales and use taxes.

Since 2020, county officials said state legislative changes have reduced the annual revenue by $38 to $45 million. While local elections, motor vehicles, land records and permits, and other services and provisions are mandated by the state, reimbursement rates and state grants have not kept up with the costs of ongoing risks.

Over the past 5 years, officials said inflation has taken a toll, including an 80% increase in metal for culverts for stormwater projects, a 50% increase in concrete for roads and bridges, and a 30-55% increase in food costs for those served by the Corrections Department.

The proposed budget also includes 4,409.89 full-time equivalent employees- no new FTEs will be paid for with county property tax. This includes 23.97 new FTEs for FY2026 and 28.18 FTEs added since the adoption for a net increase of 52.78 FTEs. Most of the new positions are in the Mental Health Department.

New FTEs include:

• 2 new Motor Vehicle specialists
• 1 Department of Corrections substance abuse counselor
• 18 new positions at the Mental Health Center

The proposed budget also recommends a 4% compensation pool for county employees.

County leaders noted that other highlights include:

• $2.4 million in ongoing funds to cover inflationary costs for basic services like food and medical costs for those in a Department of Corrections residential facility or jails, fuel, postage and technology maintenance and renewals.
• $250,000 to provide more nutrition and utility aid to some of the most vulnerable residents.
• $100,000 for eviction mediation.
• $200,000 for the landlord incentive program to address housing challenges.
• $2 million for road overlays and $500,000 in ongoing funds for overlays.

Over the past few years, Ferguson said she has shown that the county’s current revenue growth in the 5-year forecast is not keeping pace with expenditures to maintain existing services. Future projections indicate slowed revenue growth for assessed valuation, sales and use taxes. Inflation remains high, causing increased costs.

For these reasons, Ferguson indicated that the BOCC approved ballot language for voters to consider renewing the Public Safety Sales Tax. More information about this can be found HERE.

The BOCC is now expected to host department presentations on Thursday afternoon, May 22, through June 12. Commissioners and staff will continue to discuss and deliberate until the scheduled budget adoption in August. Public is crucial and there are several opportunities for residents to submit theirs between 4 and 6 p.m. on:

• June 9 Budget Open House - Corinth Library, 8100 Mission Rd., Prairie Village
• June 10 Budget Open House - Central Resource Library, 9875 W. 87th St., Overland Park
• June 17 - Lenexa Library, 8778 Penrose Ln., Lenexa
• June 18 - Blue Valley Library, 9000 W. 151st St., Overland Park
• June 24 - Gardner Library, 137 E. Shawnee St., Gardner

A separate pubic hearing on the budget is expected to be held at 6 p.m. on Aug. 20, at the Olathe Conference Center, 105401 S. Ridgeview Rd. This will also serve as the Revenue Natural Rate public hearing.

For more details about the proposed budget, click HERE.

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