Wise County Supervisors Grapple with Budget Shortfall

Proposed tax hike and service cuts aim to address $4.7 million budget gap

Published on Feb. 20, 2026

Got story updates? Submit your updates here. ›

The Wise County Board of Supervisors in Virginia is struggling to address a nearly $4.7 million budget shortfall for the remainder of the fiscal year. The board is considering raising the real estate tax rate from 69 cents to between 63 and 69 cents, while also planning significant cuts to county programs and services, including potentially laying off 20-25 employees. The board is facing public backlash over the proposed measures and is working to balance the need for increased revenue with minimizing the impact on residents.

Why it matters

Wise County's budget crisis highlights the difficult decisions local governments must make when facing significant revenue shortfalls. The proposed tax hike and service cuts could have a major impact on residents, especially those on fixed or limited incomes. The situation also raises questions about the county's long-term financial planning and the need to diversify its revenue sources beyond property taxes.

The details

The Wise County Board of Supervisors recessed the adoption of a new tax code after a 1.5-hour closed session. The proposed tax rates are in response to the $4.7 million budget gap. Property owners may see a significant increase in real estate taxes due to a recent county reassessment. Interim county administrator Karen Mullins said the board is looking at $4.5 to $5.5 million in cuts to county services, in addition to the tax increase, which could include layoffs of 20-25 employees and reductions to fire departments and other services. The board has until March 5 to make a final decision on the budget.

  • The board recessed the adoption of a new tax code at its Tuesday night meeting.
  • The board has until March 5 to make a final decision on the budget.

The players

Wise County Board of Supervisors

The governing body of Wise County, Virginia, responsible for setting the county's budget and tax rates.

Karen Mullins

The interim county administrator for Wise County.

Andrew Villiard

The chief financial officer for Wise County.

Terry Short

A Wise County resident who proposed the board form a financial committee of community volunteers to guide the budget decision-making process.

Got photos? Submit your photos here. ›

What they’re saying

“The biggest thing is we're still looking at a tax deficit even at 69 cents. We're looking for $4.5 to $5.5 million in cuts in addition to the tax increase, so that's what's making it very difficult for the supervisors.”

— Karen Mullins, Interim county administrator (wjhl.com)

“They're going to have to do their homework, and they're going to have to get together on several different occasions, put their heads together and determine what they're going to need to do in order to move the county forward. Not just pay the bills, but they're going to have to get on a path forward for several years to improve their position. They're going to have to bring industry or, instead of taxing the people, they're going to bring in businesses and rely on that revenue.”

— Terry Short, Wise County resident (wjhl.com)

What’s next

The Wise County Board of Supervisors will meet on March 5 at 6 p.m. to make a final decision on the budget and tax rates.

The takeaway

Wise County's budget crisis highlights the difficult choices local governments face when dealing with revenue shortfalls. The proposed tax hike and service cuts could significantly impact residents, underscoring the need for long-term financial planning and diversifying revenue sources beyond property taxes.