City faces $20.5 million budget gap prompting potential service cuts and layoffs

Budget challenges took center stage at the Washington County Board of Commissioners PM Work Session on December 10, 2024, as officials outlined a significant $20.5 million gap between revenues and expenditures for the upcoming fiscal year 2025-2026.

During the meeting, a county representative highlighted the constraints on the general fund, primarily due to limited property taxes and rising expenses, including health insurance and retirement costs. The expiration of a strategic investment program agreement is expected to contribute to a $10.6 million drop in funding, exacerbating the financial strain.

To address this shortfall, departments will be required to submit reduction scenarios of 10%, 13%, and 17%. The representative acknowledged the ongoing difficulty of making cuts for the fourth consecutive year, emphasizing that some services may need to be eliminated and layoffs could not be ruled out for positions supported by the general fund.

Despite these challenges, the county remains committed to transparency and responsible budgeting. The representative assured the board and the public that updates will be provided throughout the budget process, with employee information sessions planned for early next year. The focus will be on protecting as many jobs as possible while reassessing the resources and services provided by the county.