Cowlitz County Commissioners are gearing up for significant budget discussions as they anticipate a potential $20 million boost in revenue from a new bill aimed at closing a loophole in mortgage document fees. This legislative change, expected to pass, could have a notable impact on the county's finances, although specific implications for Cowlitz County remain unclear.

During a recent meeting, the commissioners reviewed preliminary financial reports and discussed budget projections for 2024 and 2025. The original budget for 2024 estimated revenues at $54 million against expenses of $70 million, leading to a projected deficit of $14.5 million. However, revisions have since adjusted revenue expectations upward to $57 million, while expenses have also increased slightly to $71.6 million. This adjustment narrows the anticipated deficit to approximately $3.5 million, leaving a projected fund balance of around $19 million by the end of 2024.

Looking ahead to 2025, the commissioners forecast a more optimistic scenario. They anticipate revenues could reach $59 million, with expenses potentially decreasing by about $7 million due to vacancies and conservative budgeting. This would result in a projected fund balance of approximately $13.9 million by the end of 2025, assuming departments do not fully utilize their budgets.

A key point of discussion was the need for departments to reassess their budgeting practices, particularly regarding direct labor and overtime expenses. The commissioners noted that many departments had underspent their budgets significantly, indicating a potential for more efficient financial management moving forward.

As the county prepares for these budgetary changes, the anticipated revenue from the new legislation could provide a much-needed financial cushion, allowing for better planning and resource allocation in the coming years. The commissioners emphasized the importance of maintaining a healthy fund balance to meet both state auditor recommendations and internal policy standards.