Washington County warns of steep Social Services cost growth, board approves related budget adjustments

Chairman and members of the Washington County Board of Supervisors heard extended briefing and discussion on March budget variances and mounting costs in the Department of Social Services, and approved a package of budget amendments and program appropriations to cover immediate shortfalls.

The county—s finance staff told supervisors that cash balances were down about $6,000,000 from the same time last year and that unreserved fund balance is projected to drop by about $18,800,000, which could leave roughly $15,000,000 in reserves if proposed appropriations for 2025 are used. "Cash balances are down about $6,000,000 overall from the same time last year," a county finance official said at the meeting.

Why it matters: Supervisors were repeatedly warned the increases are largely driven by mandated social-service expenditures that the county must pay and that are partly funded by state and federal sources; the county—s local share has risen and the county cannot delay many of the payments. The board voted to move forward with several budget amendments to cover program shortfalls while staff continue to seek additional state revenue and monitor year-end closing.

Details of the discussion and actions

Tammy, representing the Department of Social Services, explained drivers of the higher costs including motel placements for people experiencing homelessness, foster care expenses and other entitlements. "We have created a homeless unit. We've now got 3 people dedicated to working closely with people that are homeless to try to help them find what they need," Tammy said, summarizing program changes meant to connect people to housing and services.

Tammy and county finance staff described how some costs are paid with ARPA and other one-time funds now being spent down, and how those planned uses contributed to the year-over-year decreases in cash on hand. Tammy noted that while some prevention and contracted shelter-bed programs are intended to reduce overall cost, hotel and motel placements have pushed expenses sharply higher even where caseloads have not increased.

Board members asked whether the county could slow payments or tighten eligibility to reduce outlays. Tammy and other staff repeatedly said central aspects of shelter and temporary assistance are governed by state regulations and statutes and thus offer limited local discretion. Board members discussed operational responses including targeted prevention, temporary warming centers, county-run housing options and partnering with local providers to reduce motel nights and chronic placements.

Votes at a glance (items considered and approved during the meeting)

- Resolution: amend 2025 general fund budget for Department of Social Services (to recognize increased mandated costs and appropriate local match). Moved by Jim; second by Sam. Outcome: approved. - Resolution: carry over unspent ARPA and other funds to cover foster care and day-care services. Moved by Daryl; second by Sam. Outcome: approved. - Resolution: increase appropriation for public-health early intervention and preschool programs (state-aided programs where local matching dollars are required). Moved by Sam; second by Sue/Charlie. Outcome: approved. - Resolution: mental-health funding and court-based navigator services (appropriations and revenue increases). Moved by Jim; second by Dave. Outcome: approved.

For each of the above the board recorded the motions and votes during the meeting; staff said some of the measures are accounting steps to place already-spent or obligated dollars correctly into the 2025 budget and to ensure state and federal reimbursements are matched appropriately. Several motions were described by staff as necessary to close the books and manage cash flow while the county continues to pursue additional state aid.

What supervisors asked and next steps

Supervisors pressed staff for a clearer estimate of how much of the increased cost is truly local (county-funded) versus reimbursed by state or federal sources; they also asked for an itemized analysis of mandates and for a suggested approach if the state reduces funding. One supervisor recommended assembling an analysis of the county—s unfunded mandates and the net local cost for presentation to the state.

County staff said they would provide more detailed mandate analyses and work on metrics that the board could use to evaluate program performance and potential savings. Tammy said the department would continue to prioritize placements and contract solutions that reduce motel nights and speed exits to permanent housing.

Ending: The board approved the immediate budget amendments and asked administration and DSS to return with a clear, quantified mandate-cost analysis and proposed long-term options for reducing net county exposure to mandated social-service spending.