County Commissioners Present Preliminary 2026 Budget with Significant Deficit Projections

In a recent meeting held on September 2, 2025, the Clallam County Board of Commissioners reviewed the preliminary budget for 2026, highlighting significant financial challenges ahead. The presentation, led by the deputy Chief Financial Officer, outlined a projected revenue of approximately $54.3 million, primarily sourced from taxes, charges for goods and services, and intergovernmental revenues. However, the county anticipates a 7.12% decrease in overall revenues compared to the previous year, largely due to the expiration of certain grants and a decline in healthcare funding.

The budget process is particularly critical this year, as the county faces an operating deficit projected at $3.26 million, with reserves expected to drop by 20%. The deputy CFO emphasized that the preliminary budget reflects a carry-forward of previous activities and levels of service, with no new services being introduced. This cautious approach comes amid rising labor costs, driven by recent contract negotiations for law enforcement personnel, which have seen salaries increase faster than inflation due to recruitment and retention challenges.

The commissioners discussed the need for a structured approach to upcoming budget meetings, suggesting a dedicated time for transportation improvement discussions alongside budget deliberations. This change aims to enhance public engagement and ensure that critical transportation issues are addressed adequately.

In terms of expenditures, the budget estimates approximately $58.15 million for 2026, with labor and benefits costs comprising the largest portion. The meeting underscored the county's commitment to public safety, with nearly 60% of the budget allocated to this area. However, the county's spending on public safety remains below the state average for similar-sized counties, raising questions about resource allocation and community safety.

As the budget discussions progress, the county will also consider additional funding requests from various departments, including health services and public works, which could further impact the financial outlook. The commissioners are expected to continue refining the budget in the coming weeks, with a focus on balancing fiscal responsibility while meeting community needs. The outcome of these discussions will be crucial for the county's financial health and service delivery in the upcoming year.