MOUNT VERNON — The Knox County commissioners adopted a 2026 general fund budget on Thursday that showed a 5% increase in revenues over 2025.
Commissioners expect the county to receive $28.646 million in revenues next year, compared to $27.3 million last year.
The estimated 2026 expenses total $28.644 million, up just over $1.4 million compared to $27.228 million in 2025.
County Administrator Jason Booth is comfortable with the budget but said it is a close one. Only $1,954 remains unappropriated.
Additionally, Booth said it contains potential risks.
“The sales tax is 44% of revenue. Sales tax can be volatile because people can decide [not to spend],” he said. “Property tax is 24% of revenue, and there’s a lot of talk about reform.”
Inflation is another potential risk.
“Obviously we’re seeing an increase in investment income … but when we do projects, it’s costing us to do more. It’s costing us more to buy and replace equipment,” Booth said.
Children’s services and state grants are additional risks.
The commissioners again budgeted $1 million to help cover the cost of placement services.
State grants fund several personnel positions but are subject to the state legislature. If that money does not come through, the expense would fall on the general fund.
Booth anticipates around a $12 million carryover.
“I feel like we’re all in on this budget. It’s a fair budget and it’s an accurate budget, but there’s no fluff in it.”
county administrator jason booth
“I think our revenue number is what we really believe our revenue is going to be, and I think our expenses are what we think they’re going to be,” Booth said.
Sales tax again tops revenue sources
County sales tax (44%) and general property tax (24%) continue as the leading revenue sources. However, for the first time in six years, they fell below 70% of the total anticipated revenue.
In 2021-25, the combination ranged from 70% to 77% of income.
Depository and investment income continues its upward trend, rising from $1.1 million last year to $1.65 million in 2026 (5.8% of estimated revenue).
For the years 2021-24, anticipated investment revenue hovered around $250,000 (1% of revenue).
Expenses increase by $1.4 million
Estimated expenses rose by $1.41 million in 2026. The Knox County Sheriff’s Office and jail account for 60% of the increase, totaling $859,620.
Booth noted that the increase is not due to the new administration. Instead, it is an upward trend over the past six years.
In 2021, the sheriff’s budget was $5.63 million. In 2026, it is nearly $9 million.
Between 2025 and 2026, expenses increased 10%.
A new full-time command staff position ($101,000), salary increases, uniform costs, and a shift to a medical/mental health jail contract are among the reasons for the rise in expenses.
“It’s not sustainable. County revenue will not be able to keep up with a 10% inflationary spending in the sheriff’s office year after year. It can’t happen,” Booth said. “So that’s an area we’re going to have to address with the current sheriff and administration and try and get some guardrails there.”
Other reasons for increased general fund expenses include bond debt for capital improvement projects, insurance, and staffing and equipment for the Board of Elections.
The Veterans Service Office line increased because property tax valuations increased.
“Short of the sheriff’s office increase of $860,000, the rest of the budget, other than the requirements, came in pretty much on target with minor increases, and we had no issues with the budget process,” Booth said.
(Below is the 2026 general fund report.)