Hamilton County Mayor Jim Coppinger drew a line in the sand Monday.
If county commissioners want to keep nearly $1 million in special project spending in the 2016 budget, they will do so without his blessing.
Where does the money go?
The photos below represent items Hamilton County commissioners have purchased with so-called discretionary funds. Each year since 2008, the nine commissioners have split a $900,000 pot to pay for special projects in their districts. Historically, funds could be spent to buy anything including school supplies, fencing for high school athletics, band instruments, public art or signs for public parks or neighborhood associations.
A sculpture titled "Fiercely (Over I)" by artist Andrew Light stands near the intersection of Bass and East Brainerd roads.
Staff photo by Doug Strickland
Recently refinished tennis courts at the Standifer Gap Park and Recreation Center are seen Friday, June 19, 2015, in Chattanooga, Tenn.
Chloe Steves and the Ooltewah High School band perform with instruments purchased with discretionary funds.
A ceiling-mounted camera is part of a security system purchased for Ooltewah Elementary School.
iPads were purchased for Allen Elementary School.Read more
* Coppinger's budget veto is fiscally responsible * County mayor scores with reset veto button
Coppinger on Monday vetoed an amended budget the commission passed last week, saying the commission's decision to draw from the county's reserves to pay for annual commissioner discretionary spending was "fiscally irresponsible."
"The commission's decision to amend the budget and add $900,000 in discretionary funding is a disappointment to myself and the financial staff who worked for months to put together and present a balanced budget," Coppinger said from the front steps of the courthouse Monday.
Coppinger said his staff trimmed millions of dollars from public safety, education, emergency services and other areas to make ends meet, and it was irresponsible for the commissioners to take the money for "unspecified wants."
It was the first time since the county government was formed in 1978 that a budget has been vetoed, and it was the fourth veto of any kind during that time.
Coppinger didn't include discretionary spending in the 2016 budget he presented to the commission last week, because he said there was no revenue stream in place to fund it. Discretionary appropriations had been a budget staple since 2008, and they had been included off and on since 1981.
But commissioners made a last-minute move to return the discretionary funding to the budget in an amendment by pulling $900,000 out of the county's savings account.
Conservative groups cried foul on the commission's effort. Some said pulling money from the county's rainy day fund was not fiscally conservative, while others decried discretionary spending as political pork.
But commissioners in favor of the funding say discretionary money pays for school and public safety projects that would otherwise go unfunded. And they are a good way for the public to see direct impact from its tax dollars, they maintain.
COMMISSION RESPONSE
County Attorney Rheubin Taylor said the commission has 20 days to overrule the veto. If it does, the amended budget stands. If commissioners don't overrule the veto, a new budget vote will have to be held.
On Monday, Commission Chairman Jim Fields, who supported amending the budget, said the commission would vote Wednesday on a resolution to overrule Coppinger's veto. It would take a simple, five-member majority to bypass the mayor.
"Whether or not there are five commissioners who want to do that, I don't know. We'll just have to see," Fields said.
He said his vote wouldn't change.
"As far as I know, the mayor didn't say anything different [Monday] than he did last week. So I don't see any reason to change my vote."
District 4 Commissioner Warren Mackey, who was one of six along with Fields who voted to tap the county's savings for special project spending, said his vote also wasn't changing. Without discretionary spending, his district didn't see any special projects. And he said reserves only need to be so large.
"At some point, you build up reserves, either that suggests we cut the tax rate or take some of those reserves and give them back to the people," Mackey said.
Commissioner Tim Boyd said his vote wasn't changing either. And if the veto does go though, he will just double down on scrutinizing Coppinger's budget.
"Am I going to uphold the amended budget, yes. Now if the decision of the commission is to go along with his veto then that gives me an opportunity to really scrutinize his discretionary decisions," Boyd said.
Commissioners Sabrena Smedley, Randy Fairbanks and Chester Bankston also voted to amend the budget. They did not return telephone messages Monday.
Commissioner Joe Graham, who was one of three who voted against the budget amendment and the only commissioner to vote down the amended budget, said he supports Coppinger's veto.
"I'm going to stick to it. I did not support the amendment, I didn't support the amended budget. I will be supporting the veto," Graham said. "I was told discretionary spending was included when we had the money. And it's my understanding we don't have the money."
Commissioners Greg Beck and Marty Haynes also voted against the amendment.
Graham said he would support the veto, but he hoped to avoid a drawn-out fight that would stall passage of the budget by July 1.
"There's no sense in holding up Hamilton County and holding the budget up on it," Graham said.
Some commissioners criticized Coppinger, because he spent discretionary money when he was the District 3 commissioner from 2006 to 2011. Figures received late Monday show Coppinger spent about $150,000 in discretionary funds during that period.
On Monday, Coppinger said he had different responsibilities at the time, and the county had tax increases to support the set aside.
"At that particular time, I wasn't the person responsible for making that budget," he said. "Obviously, my responsibilities have changed, and I just want to do what the people expect me to do and that's run responsible government."
THE BUILD UP
The discussion to end discretionary funding started in November.
Boyd at the time said the nearly $1 million in spending shouldn't be in the budget at all unless the county had revenue to support it. In the 2015 budget, discretionary funds have been supported by bonds, which charge taxpayers' interest.
"We don't need to be paying 15 years of interest on discretionary funds. Let's spend it out of the revenue in the coffers, and if the money's not there, don't have the discretionary," Boyd said in November 2014. "We don't need to be borrowing money for the discretionary funds."
Later, commissioners lobbied to have the spending returned to the general fund to get rid of restrictions on how the money is spent. Under bond rules, discretionary projects must be on public property and be for projects that last longer than 15 years.
Now, Boyd says, there's plenty of revenue to support the set aside.
In an email to a reporter Sunday, Boyd said the county adds $20,000 a day to the savings account. And discretionary money "will use about 45 days worth of tax revenue which would have gone to the reserve funds."
He also claimed that Coppinger had "his own discretionary fund" because supported agencies such as the Enterprise Center, Bessie Smith Cultural Center, the Armed Forces Day Parade and the Read 20 literacy program were included in the budget at Coppinger's discretion.
Coppinger said Monday each of those agencies makes budget presentations and the commission approves or disapproves them. There is a separation of power, he said. He added that no commissioner questioned the content of the budget at either of two public work sessions or the actual budget presentation.
Contact staff writer Louie Brogdon at lbrog don@timesfreepress.com, @glbrogdoniv on Twitter or at 423-757-6481.