Custer County budget workshop: commissioners weigh freezes, one-time bonuses as insurance and revenue shortfalls loom

At a Custer County budget workshop, commissioners and county staff reviewed department-by-department requests for the 2026 budget and signaled they are likely to limit across-the-board pay increases while seeking ways to cover rising insurance and service costs.

County staff presented payroll totals and departmental requests, and warned that the county faces a multi-pronged funding challenge: a projected increase in personnel costs, an uncertain health-insurance premium increase, and declining non-property revenues. The county’s payroll bottom line was shown as $5,918,697 for 2024 (unaudited), a projected $6,003,308 for 2025 (a 1.43% increase) and a $6,306,299 salary-and-benefits request for 2026 — a roughly 5% increase from the 2025 projection “without any raises whatsoever,” staff said.

The session moved quickly from high-level totals to department detail. Officials said property-tax revenue is expected to rise about 12%, but property tax makes up a relatively small share of total county revenue, while sales, lodging and other fees have fallen since the end of federal COVID-era aid. Commissioners and staff repeatedly cautioned that the county is “treading water” and that choices will be required about services and staffing.

Why it matters: commissioners must balance legal and statutory obligations for essential services with constrained revenue. County staff said the general fund is projected to run roughly $500,000 below revenue in the proposed 2026 budget unless changes are made, and that the insurance fund also likely needs an infusion (staff cited roughly $150,000) to avoid running a deficit.

Key details and department notes

Salaries and benefits: Staff said the 2026 salary request reflects positions added during…