Cowlitz County finance staff report multiple health and human services funds ending 2024 with healthy balances

Cowlitz County finance director Kathy Funk Baxter reported on the county’s Health and Human Services-related funds at a budget management review, saying the materials were dated Jan. 16 and show actuals through Dec. 31, 2024.

Her presentation covered the Veterans Relief Fund, multiple human services funds (including substance-abuse and developmental-disabilities related accounts), the behavioral and mental health sales-tax fund, the county health department, low-income housing funds and opioid settlement proceeds. “This is our revenue comparisons,” Funk Baxter said when introducing the Veterans Relief Fund data.

The Veterans Relief Fund received slightly more property-tax revenue than budgeted: budgeted property-tax revenue was $218,835 and actual property-tax revenue was about $228,629 — nearly $10,000 above estimate. Investment (miscellaneous) income for that fund was under budget in the report, which Funk Baxter cautioned could reflect accruals still to be recorded. She also said a prior decision to bill Veterans Relief administrative overhead back to the general fund has not yet been fully accrued and suggested the advisory board had asked for the administrative cost to be borne by the general fund this year. Finance staff and at least one commissioner said using the veterans fund’s earned interest to pay administration — rather than the general fund — could reduce pressure on the general fund.

Across the human services funds, most of the large revenue variances reflected the timing and nature of cost-reimbursement grants. For the department fund (Fund 14001) taxes were slightly higher than budgeted and intergovernmental (grant) revenue trailed estimates because grant reimbursement requests and accruals were not yet complete. Staff said program income and grant accruals were still being finalized and that many personnel costs are charged across grants and funds, complicating year-end estimates.

A fund labeled for substance-abuse activity showed intergovernmental revenue close to budgeted estimates but, again, staff cautioned the account is largely cost-reimbursement grant revenue and expenses correspondingly tracked lower than budgeted.

The county’s behavioral and mental health sales-tax fund (the tax sunset in March 2024) kept a large fund balance; Funk Baxter said the fund had nearly $6 million in balance and had been drawing that balance down to cover program transfers such as jail-related services and drug court. She noted some departments had yet to submit reimbursement requests and anticipated additional transfers before year-close.

The health department reported being slightly under budget on both revenue and expenses through December. Staff said most accruals are finalized in February and one more month of investment income accruals is expected before the books are closed.

The county’s low-income housing fund showed large one-time expenditures in 2024: staff highlighted a roughly $720,000 commitment to Lower Columbia CAP for new affordable housing units and a $2 million one-time grant for a project called Community House on Broadway. Even with those outlays, staff said the fund ended the year with a multi-million-dollar balance but that intergovernmental (grant) revenues frequently arrive as cost reimbursements.

The opioid settlement fund (Fund 19301) received about $2.23 million in 2024 from multi-year litigation settlements; staff said portions of those settlements pay out over many years (one described as about $200,000 per year spread over roughly 17 years). Very little had been spent from that fund as of December; the report showed about $25,000 charged for a feasibility study of a juvenile facility and an estimated year-end balance of about $2.6 million. Staff indicated they may schedule a board workshop in early spring to review opioid settlement funding options and allowable uses.

Why it matters: several funds discussed are grant- or reimbursement-driven, so year-end variances frequently reflect timing and accruals rather than program cuts. Veterans Relief and the opioid fund carry multi-year balances that staff and commissioners discussed using for expanded services or one-time investments.

Commissioners asked staff to consider alternatives for how administrative costs are charged (for example, using veterans fund interest income rather than the general fund) and to return with clarified accruals and next steps as February accruals are posted.

Ending: Finance staff said most final accruals will be posted in February and offered to return with updated year-close figures and any recommended budget amendments.