Washington County faces $20.5M budget gap amid property tax reform challenges

Washington County officials are grappling with a significant budget challenge, revealing a $20.5 million gap between revenues and expenditures in their proposed budget for the upcoming fiscal year. This stark financial reality was highlighted during the Washington County Budget Committee Townhall held on May 12, 2025, where leaders expressed mixed emotions about the ongoing struggle to balance public service commitments with fiscal responsibility.

The county's budget woes stem from a constrained property tax system established nearly three decades ago, which limits revenue growth and has left many essential services underfunded. As a result, transportation and library services have taken precedence over other general fund-supported services, creating a hierarchy of funding priorities that officials are now forced to confront.

"At the end of the day, the math has to be correct," said a county representative, emphasizing the obligation to produce a balanced budget each year. The meeting underscored that Washington County is not alone in facing these financial hurdles; many local governments across Oregon are similarly struggling to close budget gaps, with a third of the state's city governments reporting similar challenges.

The discussion also touched on the impact of unfunded mandates from higher levels of government, which have added to local costs without providing corresponding funding. This has led to increased workloads and maintenance needs that further strain the county's budget.

Officials cautioned against relying on one-time funding sources to support ongoing operations, warning that such practices could lead to a "cliff effect" when those funds expire. The proposed budget reflects a cautious approach to these revenue sources, aiming to ensure long-term sustainability.

As Washington County continues to navigate these financial challenges, the focus remains on finding a balance between meeting community needs and adhering to fiscal constraints. The outcome of this budget process will be critical for the county's ability to maintain essential services and support its growing population.