POPLARVILLE — Pearl River County supervisors on Monday, citing what board president J. Patrick Lee called a “financial emergency,” instituted a county government hiring freeze by a unanimous 5-0 vote.

After suggesting a freeze to supervisors, Supervisor Joyce Culpepper moved that one be put in place. Supervisor Sandy Kane Smith seconded Culpepper’s motion.

In addition, the board unanimously passed another resolution instructing County Administrator Adrain Lumpkin, Jr., to notify county department heads that if they are over budget, the board will not approve any more purchase orders for that department until its budget is brought back into line. POs already issued before department heads are notified will be honored, said Lumpkin.

In other motions, also adopted unanimously, the board instructed Lumpkin to notify department heads that supervisors want a plan from each department administrator advising the board what the department plans to do about budget overruns and when each administrator plans to implement a procedure to rein in spending. Another motion put a hold disposing of county trailers, or prefabricated buildings, at Millard to allow time to explore the possibility of selling them as surplus property.

Said Lee, “Our cash balance has given out, and we have no other options.”

Said supervisor Anthony Hales, Sr., “I have been hollering wolf on television and in the newspapers. People think I was just howling at the moon, but the wolf is now at the door.”

Hales, saying the county has to generate more tax revenue or begin cutting services, and employees, has proposed a one-cent countywide sales tax, with the money generated going to the county, that would help bridge shortages in property tax income and actually offset taxes on residential properties. That proposal, if approved would not help this year.

Monday’s meeting began an attempt to solve the current budget overruns and the process of hammering out a 2012-13 county budget. Supervisors plan to meet again on Monday at 9 a.m.

The board has until Sept. 15 to finalize a new budget, which must be adopted by Oct. 1. The county’s fiscal year runs from Oct. 1 to Sept. 30.

In a wide-ranging discussion that lasted two hours, supervisors explored options. Lee said the county is faced with either laying off employees, drastic cuts, raising taxes, or all three. Supervisors also discussed the possibility of employee furloughs. Hales said citizens want government services but don’t want to pay the taxes needed to provide the services.

Smith made the motion to put a hold on the trailers, saying supervisors should explore the possibility of selling the surplus buildings rather than letting them be used by private charities, the sheriff’s department and other semi-governmental entities. He said if the trailers are not sold, the county will end up paying for improvements, maintenance, insurance and utility bills, which will cost the county even more money.

The District 5 supervisor said there are eight trailers, or what are called prefabricated buildings, at Millard and suggested they be appraised prior to holding an auction on them. “I know we have promised them to other organizations, but we badly need the revenue and money right now,” said Smith. He also suggested the county look into selling surplus equipment and any surplus county property to raise revenue.

Lumpkin said that the county’s cash balance is now a half-million dollars lower than it was last year at this time, and that projections by county tax assessor-collector Gary Beech indicates that tax revenues will dip further this year than they did last year, when supervisors for the first time in 16 years raised millage rates.

Lumpkin said the expected dip in projected revenue from ad valorem taxes is because the state has lowered the index by which property ad valorem taxes are calculated because of declining property values.

Supervisors said last year’s two-mill tax increase was passed to maintain collections at the same level as previous years’ collections, because of the dip in property values.

Supervisors painted a grim picture. They said overspending by department heads was out-of-control and they were determined to get spending under control, which they are responsible for by state law.

A suggestion also was made that all non-essential spending, such as donations to charitable organizations, be cut. However, no action was taken on the proposal.

The board also met with the Pearl River County Grand Jury and recessed to Monday at 9 a.m.