Thurston County budget team warns of widening general‑fund shortfall; commissioners discuss cuts and levy options

Thurston County budget staff on Aug. 27 told commissioners the county faces a structural shortfall that requires both expenditure reductions and new revenue options to reach a balanced 2026–27 biennial budget.

Summer Miller, agent and finance manager in the commissioners’ office, presented five‑year projections that show revenues flattening while expenditures rise. Miller cited key drivers including collective bargaining increases, internal service rate adjustments, new public‑defense caseload standards and inflationary pressures. She said the county’s previous fund‑balance “blip” after the pandemic was driven in part by ARPA lost‑revenue calculations but that projections now show a growing deficit.

Miller said the county has adopted $36 million of reductions for 2027 as part of the planning model but that, on current assumptions, an estimated 25% reduction is required for 2026 to reach balance. She also told the board about…