County health funds show $1 million veterans reserve as commissioners question homeless-services contract

Health and Human Services presented midyear budget reports to the Cowlitz County Board of Commissioners on a range of program funds, highlighting a veterans relief account with a balance of just over $1 million and several state grant transitions that will shift revenues into county funds next year.

The presentation showed the veterans relief fund was budgeted for $222,000 in taxes this year and had collected about $132,000 to date; intergovernmental revenue included a small timber-related payment recorded at roughly $65. Health and Human Services staff said miscellaneous revenue and investment earnings have contributed to the account’s growth and that the county will perform a third-quarter budget amendment to “true up” transfers in and administrative accounting.

Why it matters: the veterans relief fund is restricted to assistance for low-income veterans, and commissioners raised questions about whether the county or the veterans advisory board can reallocate the accumulated balance to broader programs. Health department staff said assistance eligibility uses the federal poverty guidelines and noted the advisory board had raised assistance limits earlier this year, which staff expect will increase expenditures and reduce the fund balance over time.

Key details: - Health and Human Services said the veterans relief fund balance grew “slowly, over time,” and accelerated during the COVID period when use of existing services fell and investment revenue increased. The department said the fund has largely been used for food, emergency car repairs and utility help, and staff discussed possible larger investments (for example, veteran-focused housing programs) but said any spending must benefit low-income veterans. - The department budgeted $222,000 of property-tax-supported revenue for veterans relief in 2025 and recorded $132,000 so far; staff reported a fund balance “a little over a million dollars.” - An advisory-board change to assistance limits earlier this year appears likely to increase spending; staff said they expect expenditures for the remainder of the year to approach annual revenue.

Health and Human Services program transitions and opioid settlements: Staff reported that a state fund (identified by the department as fund 14101) will close on Jan. 1, 2026, and activity will roll into local fund 14100; the transition helps explain low intergovernmental revenue to date in some human-services accounts. The county’s opioid fund is recording investment earnings and settlement payments; staff said they expect an additional $370,000 in settlement receipts this year and that the county is receiving recurring annual settlement amounts from multiple manufacturers and distributors.

The homelessness-contract question: Commissioners asked why the county’s consolidated state contract for homelessness and related services has grown substantially in recent years. A commissioner reported that, in the time they’d been on the board, the consolidated contract increased from roughly $4 million to about $11 million and expressed concern that expanded spending may not be reducing homelessness. The board asked staff to research whether counties are required to accept the entire state contract or whether the state would re-solicit administration locally if a county declines portions of the contract. Health staff said their understanding has been that, if a county declines, the state would run a request for proposals in the county to place the funding with a local nonprofit, and staff said they would follow up with additional clarification from state contacts.

What the board directed: - Staff were asked to confirm whether the county must accept a state homelessness contract in full or whether the state can reassign administration by request-for-proposal in-county. - Health and Human Services staff said they will bring proposed pass-through contracts for community providers (identified as CAP and the mediation center) to the board in the coming weeks.

Discussion vs. decision: the board’s remarks were discussion and a direction to staff to seek clarification from the state; no formal vote on reassigning or refusing contract funds was taken at the meeting.

Speakers quoted or referenced in meeting materials: Kathy Funk Baxter, finance director; Health and Human Services staff (presenting); commissioners present. Exact attributions for direct quotes were limited to named staff during the slides; comments by an individual commissioner criticizing the larger policy were part of discussion but were treated as direction-seeking rather than a board decision.

Next steps: staff will return with clarification from state officials about contract take-up options and with the proposed pass-through contracts for community providers.