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Klamath County commissioners order departments to model deep budget cuts as deficit forecast widens
Summary
Facing a projected $7 million shortfall and longer‑term structural gaps, the Klamath County Board of Commissioners directed general‑fund departments to submit flat budgets and white papers showing a roughly 30–32% reduction scenario and to prepare for budget workshops and further public discussion.
The Klamath County Board of Commissioners directed department leaders at its Jan. 29, 2025 finance meeting to prepare budget materials that show a baseline balanced budget without reserve use and a supplemental white paper describing what roughly a 30–32% reduction in general‑fund allocations would mean for service levels.
Commissioners described a structural situation in which recent reductions in taxable value, flat property tax rates, and other revenue pressures have produced a projected operating deficit of about $7 million for the coming fiscal year and forecast larger gaps over a multi‑year horizon. As part of the direction, commissioners asked departments to submit a ‘‘flat’’ budget (no reserve spend) and to prepare an exercise or white paper that explains how large across‑the‑board reductions would affect mandated and non‑mandated services, staffing, and program delivery.
The board discussed implementation details: internal‑service departments should also model reductions but may scale the reduction proportionally based on the share of their revenue that is supported by general‑fund allocations (departments that receive no general‑fund allocation — for example, some special‑revenue programs — were instructed not to complete the exercise). Commissioners emphasized that the step is an exercise to inform decisions, not an immediate directive to cut staff or eliminate programs, and asked for transparent public presentations during upcoming budget workshops.
Commissioners noted prior efforts to reduce costs, including hiring freezes and past changes to benefits and insurance structures, but said further work is required to identify sustainable service levels. The board scheduled training and multiple budget workshops to review submissions and to present the scenarios to the budget committee and the public.
What departments were asked to submit
- A balanced “flat” operating budget for 2025–26 that does not rely on reserve spending. - A white paper describing the impact of an approximate 30–32% general‑fund reduction on services, staffing and legally mandated functions; departments with no general‑fund allocations were not required to complete this exercise. - For internal‑service units, the same exercise scaled to reflect the percentage of their revenue that comes from general‑fund allocations.
Why the board asked for the exercise
Commissioners cited a multi‑year forecast showing growing deficits if current spending and revenue trends continue, the county’s limited capacity to substitute other revenue sources, and the need to present transparent choices to the public and budget committee about what county government can afford.
Ending
Commissioners stressed the exercise is preparatory and intended to inform public budget hearings and later policy decisions; staff were instructed to open the budget software to departments in February and to prepare for spring budget workshops.
