Kootenai County commissioners trim and freeze budget requests as FY26 shortfall narrows

Kootenai County commissioners Eberlein, Duncan and Matari met July 8 to continue deliberations on the fiscal year 2026 budget and agreed to a series of cuts, freezes and limited approvals intended to narrow a projected shortfall while the county evaluates a possible cost-of-living adjustment (COLA) for employees.

The actions matter because commissioners must balance competing requests for staff and services — including assessor and sheriff staffing, facilities maintenance and public-safety programs — against rising costs such as inmate medical services and county health insurance. Decisions this week will be carried forward to a follow-up meeting on Friday as staff supply prioritized lists and additional detail.

County budget staff member Brandy Falcon told the board the county’s preliminary numbers show a $202,000 surplus at a 3% tax increase but a $417,000 deficit at 2%, a $1 million deficit at 1% and about $1.65 million at a 0% increase. "So since our last meeting, there have been some changes that were made," Falcon said, and then outlined department-level reductions submitted by several offices.

Falcon also notified commissioners of two near-certain cost increases: roughly $65,000 to next year’s insurance premium and an $8,500 likely increase in the county audit contract, driven by higher auditor wages and additional work related to leases and capital projects. "If the board’s OK, I would like to go ahead and increase the budget for the audit next year," Falcon said; a commissioner replied, "If we can predict it, we should put it in there." Commissioners instructed staff to include those forecasted expenses in the FY26 budget.

Assessor…