Finance director tells departments mental-health-tax funded positions will not be included automatically in preliminary budgets

Kathy Frank Baxter, county finance director, told the Board of County Commissioners that departments should not assume positions previously funded by the county’s mental health tax will be automatically included in their preliminary budgets. "Their budgets will not have those positions in, automatically in or funded," she said, and departments must request funding or present alternative strategies during upcoming budget workshops. Baxter said available mental health tax revenue is insufficient to fund all previously supported positions through the 2026–27 biennium and laid out options departments can pursue: convert an existing vacant position to the mental-health-tax role, reallocate other budget lines, move the position to another fund, apply for grant funding, or work with human resources on reductions in force if no other options exist. She said the jail accounts for the largest share of mental-health-tax-funded positions — roughly half of the remaining balance — and that about $1.3 million is presently tied to jail programs for medical treatment and related services. "Because the jail has the most significant amount of the mental health tax…that’s pretty much a mandated item," she said, and she proposed treating jail positions differently in the initial budget because of those obligations. Baxter reminded departments that the county budget calendar is underway: budgets are due from departments by Aug. 11; a preliminary revenue and expenditure budget will be provided to the commissioners on Sept. 2; and department budget workshops begin after that. She said a special workshop on the mental health tax is slated for Sept. 16 to allow departments to present strategies for retaining or replacing positions funded by the tax. During the meeting commissioners and staff discussed the uncertainty around the county’s medical contract and a separate Medicaid transformation initiative. A county staff member said the county is out to bid for the jail medical contract, expects to conclude that process by Oct. 1 and to reengage on the Medicaid transformation project afterward, with finalization anticipated in 2026. "We will conclude that process by October 1, and then we're going to get back into the loop on the Medicaid transformation project. So I would anticipate that to be finalized in '26," the staff member said. Baxter said the jail’s medical budget is approximately $2.5 million and that ongoing procurement for a new medical services provider may affect future costs. She advised departments they may be able to request positions through the normal budget request process but cautioned that the general fund is under pressure and departments should be prepared with strategies if they want to retain roles formerly funded by the mental health tax. No formal board vote was taken; Baxter sought and received commissioners’ concurrence to issue guidance to departments that positions funded by the mental health tax will be excluded from initial budget submissions and that departments must present funding plans if they wish to retain or replace those positions.