New Madrid County faces ‘ugly’ budget deficit but hopes to end in surplus

NEW MADRID, Mo. - New Madrid County Presiding Commissioner Mark Baker had one word to describe the 2025 county budget – ugly.

What Baker found ugly is the ending deficit of more than $1 million.

Total budget revenues projected for the year are $14,806,262.24 while expenditures are forecast at $15,801,831.92. The General Revenue Fund alone expects revenues of $7,426,665.59 while expenditures are listed at $8,251,323.12.

Baker clarified the deficit isn’t as severe as it appears.

In 2024, the county received $500,000 in state funding for a new building for the Sheriff’s Department. Of that funding, $131,000 was spent in 2024 leaving $369,000 which must be spent in 2025. The revenues, he pointed out, were in the 2024 budget but the expenditures are listed in 2025.

Additionally, an emergency fund of more than $230,000, which is never spent, contributes to the apparent deficit.

Health insurance continues to be the top budget challenge.

Previously the county’s health plan through Health Link was partially self-funded, leading to large payouts when claims were high. For 2025, the County has switched to United Health, allowing for a set monthly budget.

Baker also pointed out the insurer suggested the county could save a $1 million by no longer offering coverage for dependents.

“But we don’t want to do that,” Baker said. “That is part of why we are able to attract the people we have. We are going to try to keep it going.”

As in 2024, the 2025 budget does not include raises for most employees. By state law, the county prosecutor’s salary increased and, Baker said, after six months in office, the salary for the sheriff will increase.

Describing them as unfunded state mandates, Baker said those salary hikes are part of the 2025 budget.

It wasn’t all bad news.

Plans continue for the renovation of a building to house the New Madrid County Sheriff’s Department and the Juvenile Office. Commissioners are awaiting the final drawings from the architect before work begins on the building located on Highway 61 adjacent to the New Madrid Police Department and County Communication Center.

Overall, 2024 saw a slight increase in the county sales tax revenue. Last year the county received $6,589,064.72.

However, First District Commissioner Bobby Aycock noted while inflation fueled the higher tax revenues, it also fuels higher costs for the everyday items used by the county.

Traditionally, when formulating the budget, commissioners said they underestimate sales tax revenues. However, this year’s budget listed tax revenues as the amount received in 2024.

The county was able to grow its surplus in 2024, ending the year with $8,360.172.25 on hand. Commissioners attribute this to the officeholders.

“The officeholders watch what they spend and they are frugal in what they ask for,” Baker said.

Special Road and Bridge Fund

The Special Road and Bridge Fund started 2025 with $1,023,041.52 on hand and forecasts revenues at $3,982,000 for a total of $5,005,041.52. Expenditures this year are set at $3,965,073.80 leaving a surplus of over $1 million.

Included in the revenue is $1,150,000 in funding from the County Aid Road Trust, Missouri’s revenue sharing program which returns a portion of the gasoline taxes to counties. Also an estimated $20,000 will be received from payments in lieu of taxes.

Among the top expenditures is $349,000 to assist Sikeston with the new overpass located along Highway 60 in New Madrid County.

Prior to signing the final budget documents, commissioners said developing the annual budget is the most difficult task they face annually.

“We have found out over the years that we aren’t really great at predicting revenue and expenses a year ahead of time. Things happen,” Baker said. “But in the past when we have predicted negative surpluses, 99 percent of the time that I have been here, we find a way to end up with a surplus. Hopefully this year we will be wrong and we end up on the positive side.”