McHenry County board hears options to close $3.7 million FY26 budget gap

McHenry County officials presented the board with a fiscal 2026 budget update on Sept. 11 that shows a roughly $3.7 million shortfall in the general fund and outlines several options to close the gap ahead of a scheduled budget workshop in two weeks.

Carrie Wise, the county’s chief financial officer, said the budgets for all departments have been presented to liaison committees and rolled up for the full board, but that the county is “not in a really good position, financially.” Wise said the proposed FY26 general-fund expense total is $106.5 million, down slightly from the FY25 approved general‑fund expense of about $107 million, while the county’s 43 special‑revenue funds together total larger amounts and drive much of the change in the overall budget picture.

The update emphasized that the county’s general‑fund months of reserve have fallen from pandemic highs and that some special‑revenue funds are relying on the general fund for payroll. Wise said the county plans to use $1 million from a terminal reserve in the county’s benefit fund to reduce the near‑term budget gap.

Why it matters: the general fund supports most day‑to‑day county services, and a shortfall could force cuts to personnel, services or capital projects. Board members stressed that temporary fixes can have long‑term consequences and asked staff for options that both close the FY26 gap and limit harm to future budgets.

Key options discussed

- State three‑y…