In the lead up to the June 23rd vote on the Shelby County budget, County Mayor Lee Harris and County Commissioner Erika Sugarmon join host Eric Barnes and Daily Memphian reporter Bill Dries for this week's WKNO/Channel 10 Behind the Headlines.
Mayor Harris has proposed a $1.7 billion operating budget that includes reducing the county's property tax rate by 66 cents—from $3.39 to $2.73—arguing that such a cut could stimulate economic growth. "Cutting the rate… generates economic activity, particularly investment in real estate," Harris said. His proposal is four cents above the state's certified rate after this year's property reappraisal. However, he argued that this does not amount to a tax increase, stating that the certified rate is merely "a procedure" and not a legal constraint. The capital budget stands at approximately $150 million.
Commissioner Sugarmon expressed her support for reducing the tax rate but opposed a proposed $5 increase in the wheel tax, describing it as regressive. "People are being taxed to death," she said. "I am socially liberal… but fiscally conservative." She also pointed out that while the tax rate may decrease, most homeowners will pay the same amount in taxes due to increased property valuations.
Part of this year's spending debate is a proposed $40,000 minimum salary for all full-time county employees. "Some of them even told me they were receiving food stamps," Sugarmon said. She referenced a Massachusetts Institute of Technology study that calculated the living wage in Tennessee to be $20.77 per hour. The proposed budget includes a 3% raise for all employees and enhancements to benefits such as parental leave and childcare support.
The conversation turned to affordable housing, where Harris and Sugarmon agreed on the importance of leveraging land bank properties to address Shelby County's estimated 40,000-unit housing shortage. Sugarmon outlined the "Building Homes Ordinance," an effort to encourage development in underserved neighborhoods, particularly District 8. "If they do not develop those parcels, there is a clawback," she explained, noting the need for accountability and community input.
The future of the county jail sparked a disagreement between the two leaders. Harris said investment should be focused on education first rather than building a new billion-dollar jail. "Our schools are far older than the jails," he said. "We have a responsibility to first prioritize kids and families." Sugarmon, by contrast, described conditions at the jail as dire. "Please [visit]… and try the food, too. It's horrible," she said. "Every time we turn around, [we're] hearing about a death in the jail."
Both leaders recognized the necessity of rethinking the county's outdated school facilities. Harris advocated for new school construction to reinvest in neighborhoods, while Sugarmon emphasized the importance of expanding career and technical education. "These young adults need a vocation," she said, referencing a construction apprenticeship program she's developing as chair of the Workforce Development Committee.
On the future of Regional One Health, Harris announced that the county has completed land acquisition for a new academic medical center in Downtown's Medical District. A two-year planning phase is now underway. "We're poised to really transform our community," he said.
Regarding xAI, Elon Musk's artificial intelligence venture, Sugarmon expressed skepticism over its lack of transparency and potential environmental impacts. "There needs to be some type of accountability and oversight," she said. Harris responded by clarifying that he has had no contact with xAI or the Chamber of Commerce regarding the project. "I don't trust Elon Musk, and no one does," he said. "But I do trust the health department and Michelle Taylor."
Looking ahead to the budget vote, Sugarmon predicted a "long night" and anticipated some cuts to the mayor's proposal. Harris was less convinced. "I've never seen anybody cut anything," he said, noting that the commission had recently added $75 million in amendments.
As he approaches the final 13 months of his second term, Harris reflected on his administration's accomplishments, from launching the Frayser High School project to expanding access to healthcare and workforce development. Asked about his political future, Harris said he's likely nearing the end of his political career, but remains focused on one final priority: protecting the aquifer.
