Pierce County Council adopts supplemental budget with $25 million contingency to address potential federal funding losses

Pierce County Council on Aug. 12 adopted Ordinance O2025-5523S, a supplemental amendment to the 2024–25 biennial budget that creates a $25 million contingency to address programmatic and operational impacts from the loss or reduction of federal funding. The 4–2 vote followed debate and a series of council amendments that reallocated funds to specific county priorities.

Council staff member Paul Bokey summarized the ordinance and its exhibits for the council, saying the general fund ‘‘use of fund balance increases by $28,735,000’’ and that $25,000,000 of that increase ‘‘is to the established contingency fund to address programmatic and operational impacts resulting from the loss or reduction of federal funding in fiscal year 2025.’’

Why it matters: The council framed the supplemental as a ‘‘break glass in case of emergency’’ measure to allow the county to respond quickly if federal funding is cut or delayed. Councilmembers said the contingency is intended to give the executive flexibility to continue core services (public health, human services, court-ordered programs and others) while the county develops longer-term budget plans for 2026–27.

Key allocations and approved amendments

- Contingency: $25,000,000 was placed in miscellaneous current expense to be administered by the Department of Finance to backfill possible federal reductions. - Transfer to Building and Development Fund: Council Amendment 1 (adopted) cites and records a $3,500,000 transfer from the general fund to the Building and Development Fund to offset declining permit revenue. - Planning & Public Works review: The ordinance authorizes $100,000 for the Planning and Public Works Department to hire a consultant to evaluate department financial practices (fees, policies, reserves) and provide recommendations to the council. - Self-insurance and claims: The self-insurance fund spending authority was increased by $25,400,000 to align the budget with recognized or anticipated claim liabilities. - Tacoma-Pierce County Health Department: Expenditure authority for the Tacoma-Pierce County Health Department (a custodial fund in the county budget) was increased by $1,216,030. - ARPA reallocation to food insecurity: Council Amendment 5 (adopted) reallocated $800,000 of American Rescue Plan Act (ARPA) funds previously set for public health emergency response to food insecurity programs, increasing the food insecurity line from $1,350,000 to $2,150,000. - Workforce village feasibility: Council Amendment 8 (adopted) allocated up to $49,999 of ARPA homeless-housing funds for a feasibility analysis and pre-development plan for a proposed temporary workforce village on a county-owned parcel at 10413 John Bagnola Way East in South Hill; Planning and Public Works must provide information to the council by Nov. 3, 2025. Staff noted the parcel is about 5 acres and within the urban growth area. - Crystal Judson Family Justice Center proviso: Council Amendment 7 (adopted) added a proviso that up to $200,000 may be used to backfill reductions in federal funding for domestic-violence services to the Crystal Judson Family Justice Center; the executive is asked to seek matching funds from the City of Tacoma in proportion to the interlocal agreement share. - Other reallocations and administrative moves: Multiple amendments reallocated funds where original recipients could not expend the dollars (for example, reappropriating prevention services, moving unspent miscellaneous current-expense appropriations to school districts). Several such amendments were adopted. - Failed amendment: Council Amendment 10a, a proposal to provide up to $200,000 to the City of Bonney Lake for the Northwest Regional Resilience Hub (receipt-based reimbursement), failed on a council vote.

Council debate and staff explanation

Councilmembers repeatedly described the ordinance as an unusual supplemental, driven by federal changes that leave the county exposed to sudden program shortfalls. Councilmember Morrell said the Building and Development Fund transfer is intended to offset a multi-year decline in permit revenue and urged department leadership to bring a plan to return the fund to solvency during the regular budget cycle.

Julie Demuth of the Finance Department explained the rationale for the 5-business-day notification window in one adopted amendment: "Our pay cycles are 2 week pay period, so every 10 business days. The 5 day notification period allows us to act within the current pay period. If the notification period had been extended to 10 days, we would have waited that 2 week period before acting on the expenditure of any funds."

Councilmembers also discussed the food-security impact of federal cuts, noting local food banks and senior food-box programs that could face interruptions if federal support is curtailed. Several members described the ARPA reallocation as an immediate response to requests from local providers and nonprofit partners.

Decisions and next steps

The council approved the ordinance as amended by a 4–2 roll call vote. The adopted ordinance increases several expenditure authorities, creates the contingency fund administered by Finance, and directs departments to report back where specific deliverables were set (for example, the Nov. 3, 2025 feasibility deliverable for the South Hill site). Councilmembers said the hope is that the $25 million contingency will remain unused but that it provides a mechanism to respond quickly if programs face sudden federal funding losses.

Votes at a glance

- Ordinance O2025-5523S (supplemental budget as amended): Adopted 4–2. - Individual amendment outcomes (summary): Amendments 1, 2, 4, 5, 6, 7, 8, 9 — adopted; Amendment 10a — failed.

Ending

Council members and staff said the supplemental was intended to provide temporary, targeted flexibility while Finance and departments prepare for the 2026–27 biennial budget. Staff will administer the contingency per the adopted provisos, and departments were asked to return with requested deliverables and reports where the council attached deadlines or reporting requirements.