County manager outlines budget headwinds, aims to preserve ~39% reserves for FY 2025–26

County Manager Don Boone gave a narrative update on the county’s budget outlook and the early approach to the fiscal year 2025–26 budget.

Boone told the board that the county faces multiple fiscal headwinds—inflation, limitations on assessed value (AV) growth, uncertainty about timber revenues following an HCP approval, and the high cost of jail health care and PERS—and that staff intend to preserve a strong reserve position while adjusting expenditures and staffing decisions. "Right now, we are estimating that we'll probably go into the reserves by about $1,000,000," Boone said, adding that the projected reserve at fiscal year end would be about 39 percent of general fund expenditures.

Boone said staff are pursuing revenue options such as TLT changes (H.B. 3556) and state assistance for assessment/taxation (H.B. 3518), revising fee schedules to reduce general fund subsidies, evaluating vacancies and selectively delaying or eliminating positions, and redesigning organizational structures to create efficiencies. As one example, Boone described considering a reorganization that would merge juvenile services and public health into a consolidated department to improve administrative efficiencies and cross‑training: "part of what I discussed early on was to create a merged department of these currently independent departments into one, and that would be a department of health and human services type of an entity."

Boone said the current approach aims to produce a FY2025–26 budget that does not require a reserve drawdown while maintaining service levels where feasible; if the legislature acts on TLT or timber revenue replacement, staff will revisit assumptions and may change the degree to which reserves are drawn. Commissioners expressed support for the careful approach. Commissioner Banks said she appreciated the staff’s cautious stance and the retention of reserves: "I appreciate the thoughtfulness that our staff is going through in order to reduce our spending and our budget."

No formal budget decisions or layoffs were announced at the work session. Boone said there will be fewer staffed positions in the coming year through voluntary vacancies and targeted reorganizations, but staff are being careful about workload impacts. He said further specifics will be provided to the board as the budget process advances.