Franklin County finance staff warns requests could push preliminary deficit toward $3.9 million as sales tax falls

At a budget workshop on Oct. 13, Tim Anderson, a county staff member presenting preliminary numbers for Franklin County, told the Board of Commissioners that the county began the budget process with a small initial shortfall but could face a much larger gap once department requests are added.

"We do have an initial deficit of $48,002.00," Anderson said. He later listed several large requests that would widen the gap, including a $1.3 million request to the emergency communications fund "for user radio and microwave upgrade fees," a $1.4 million request intended to begin funding the county's reserve fund policy, and tens or hundreds of thousands for superior court contracts and corrections medical services.

Those requests, Anderson said, would lift the shortfall toward $3.9 million if approved. "So if you added in those 4 requests right there, we'd be at a deficit of $3,900,000," he said.

Why it matters

County staff and elected officials said sales and property tax receipts make up roughly 63% of the county's current-expense revenue and that recent declines in sales tax have tightened the budget outlook. Anderson reported that Franklin County's general sales-tax receipts were running 7.82% below the same period last year — about $362,000 less — and that the county has relied on several other one-time or irregular revenue sources in recent years.

What was discussed

- Major line items: Anderson identified the largest requests in the preliminary numbers as the emergency communications upgrade ($1.3 million), a $1.4 million contribution toward a multi-year reserve fund policy and additional contract funding for superior court and public defense. Corrections asked for roughly $472,000 in medical services in draft requests.

- Sales-tax sensitivity: Anderson and the treasurer's office reviewed multiple sales-tax scenarios. Russ, a representative of the treasurer's office, told commissioners the county uses conservative forecasts; the treasurer's office provided three scenarios for 2026 sales-tax receipts — a conservative (1%) option, a moderate (4%) option and an optimistic (8%) option — and noted the county typically budgets modest growth. Anderson said the office had submitted the budget assuming 1% growth.

- Reserve policy and beginning fund balance: Commissioners and staff discussed how beginning fund balances and vacancy savings have historically helped the county avoid steep declines. Anderson said he expected the county's beginning fund balance to land "a little more than $10,000,000" when year-end numbers are finalized and that the budget being workshopped would draw that balance down if all requests were approved.

- Comparisons and state trends: Anderson cited other Washington counties facing shortfalls and asked commissioners to consider tight management of salary and benefits. Commissioner Danzel and other commissioners emphasized holding "tight reins" on discretionary spending and building reserves to buffer future downturns.

Next steps

Anderson said line-item reviews will follow and departments will present their requests for review. Commissioners asked for department-level detail on personnel, capital and grant-dependent items before finalizing numbers.

Ending

County staff emphasized the draft nature of the numbers and said the budget will be adjusted as clearer year-end revenue, open-enrollment benefit selections and other factors become known.