Park County finance staff reported at a May 29 budget workshop that the county’s general fund is about $315,000 over budget for FY25 and early planning numbers for FY26 show a possible shortfall in the range of $750,000 before any proposed cost-of-living adjustment.

The figures were presented by Erica (finance staff), who provided a year‑to‑date budget matrix and a high‑level FTE and pay‑range summary. "Positions paid under $20 cost the county about $61,000 a year with benefits," Erica said, describing the per‑position loaded cost assumptions she used in the materials.

Why it matters: Commissioners heard that two categories — mental‑health treatment bills and juvenile‑detention costs — account for most of the upward pressure on the general fund. Finance staff and county participants warned those costs have increased sharply this fiscal year, in part because of changes in where patients can be taken for treatment and because some facilities’ billing and Medicaid coverage patterns have changed since the pandemic.

Key figures and drivers
- FY25 general fund: Erica presented a projection that leaves the general fund roughly $315,000 over budget for the fiscal year as of the May payrolls and postings.
- FY26 early projection: Finance staff said the county is likely facing a shortfall in the range of about $750,000 before any COLA (cost of living adjustment) is applied; that number remains provisional and dependent on pending entries and presentations.
- Mental‑health bills: Finance staff said mental‑health bills have grown from an average of about $30,000 to a current figure of roughly $169,000, with additional invoices still pending on the finance director’s desk.
- Juvenile detention: The county’s juvenile‑detention spending was cited as running well above prior averages; Erica said a five‑year average had typically been around $20,000, the budget for the year was $31,500, and current spending is approximately $106,000.

Discussion and clarifications
Commissioners and staff discussed several reasons for the spike in bills. County staff said some patients previously sent to a local facility called Hope House in Bozeman are now going to Warm Springs, and that Warm Springs’ Medicaid billing situation appears to have changed. Erica said the timing and coding of Medicaid payments and the state’s post‑COVID Medicaid reenrollment are complicating factors: "We're trying to figure out why these bills are coming in, because they're from 2024," she said. Staff said they would follow up immediately; Erica indicated Gina would contact the state Department of Public Health and Human Services (DPHHS) to clarify billing and eligibility issues.

Officials noted that if a facility has lost accreditation, it can affect whether Medicaid will cover patient stays; speakers described that loss of accreditation at Warm Springs as a possible explanation for current billing problems. County staff said they had reached out to state contacts and would continue pursuing the issue.

Options and next steps considered
- Billing review and reimbursements: Finance staff said they will compile a detailed list of bills, days and patient counts to assess whether opioid‑abatement funds or other reimbursements could offset mental‑health and transport costs.
- Pilot program: Staff described a proposed pilot project, expected to start in January, to provide intensive brief cognitive therapy in‑county to reduce transports and outside stays. The project, described as coordinated with state contacts and a Department of Defense consultant, was said to be intended to be funded by the state for the first year; staff cautioned the state’s final approval and funding were not guaranteed and might be delayed. Erica said the county should know more about the pilot’s funding within a day or two of the workshop discussion.
- Juvenile detention alternatives: Commissioners discussed exploring nearby capacity (Bozeman/Gallatin or other regional providers) to reduce travel‑time transport costs to Billings and Warm Springs. Staff said the sheriff’s office or county attorney’s office would need to follow up on contracting and placement logistics.
- Use of reserves and PILT: Erica explained that each fund’s cash balance functions as its reserve and that prior commissioners sought to reduce reliance on Payment‑in‑Lieu‑of‑Taxes (PILT) to support general operations. She said most PILT now supports dispatch, the sheriff’s office and roads and is unlikely to cover the recent shortfall because of competing demands.
- Transfers and year‑end adjustments: Finance said she performs transfers on June 30 (and sometimes May 31) to stabilize fund cash positions and offered to run transfers sooner to give commissioners a clearer view of year‑end cash and actuals.

Other budget items discussed
- Payroll and spending mix: Finance staff noted payroll comprises about 74% of general fund expenditures, with supplies/services at roughly 24% and capital/transfers making up smaller shares.
- Refuse fund: Staff reported refuse revenues and expenditures had improved after a rate increase; the refuse fund has carried debt and required specialized equipment purchases that affect cash flow.
- Grants and admin fees: FEMA and other grant admin fees appeared in multiple lines because of separate flood events; staff said those revenues help offset wages and costs where allowable.

Public comment and staff follow‑up
Dr. Laurel (public commenter) thanked staff for highlighting mental‑health costs and noted public‑health reimbursement changes. Finance staff said the health department’s reimbursements were improving compared with last year. Commissioners asked staff to continue compiling detailed billing records and to pursue possible state reimbursements, opioid‑abatement offsets, and confirmation of Warm Springs’ accreditation and Medicaid billing status.

Ending: The meeting closed with a routine motion to adjourn that was moved, seconded and approved.

The county’s finance staff emphasized that the numbers presented were provisional and dependent on final payroll and revenue interfaces in June; commissioners instructed staff to return with updated projections and the detailed billing compilation for further action.