County Budget Faces 25% Increase in Insurance Costs for 2025

Cowlitz County officials are grappling with significant increases in insurance costs, as highlighted during a recent meeting of the County Commissioners. The budget for risk management services has reached a staggering $22.8 million, with a notable $2.7 million already expensed this year. This reflects a 20% increase from the previous year, with projections indicating that costs could rise by an additional 25% by January 2026.

Commissioners discussed the implications of these rising premiums, which are affecting all counties in Washington. The conversation underscored the need for careful budgeting to accommodate these increases, as officials acknowledged the challenges posed by the current economic climate.

In addition to insurance costs, the meeting addressed the county's financial transfers, including an $850,000 budget for transfers that has already been fully expensed. This includes a $550,000 transfer back to the general fund to address cash flow needs and $300,000 allocated for anticipated liability claims.

The county's workers' compensation plan also came under review, with a budget of $796,800. So far, $233,450 has been expensed, primarily for claims and service fees to a third-party claims processor. Officials noted that while the county relies on historical data for budgeting, the rising cost per claim is a growing concern.

As the county prepares for potential budget amendments to address these financial pressures, officials are committed to ensuring that they can meet the needs of the community while managing escalating costs. The discussions from this meeting highlight the ongoing financial challenges facing Cowlitz County and the proactive steps being taken to address them.