Coconino County releases manager's balanced budget proposal, including $15 million stability fund and pay adjustments

At a budget kickoff meeting, Coconino County officials presented a county manager'recommended fiscal plan that emphasizes continuity of services amid federal funding uncertainty, including a proposed $15,000,000 stability fund, a formal increase in general'fund reserve policy from 15% to 25%, and staff compensation adjustments.

The county manager said the recommendation "developed a balanced budget" after months of work by staff and the manager's office. Chief fiscal officer Siri Mullaney told supervisors the plan follows Arizona statutory budgeting requirements and will be carried forward into legally required public steps including a tentative budget adoption and truth in taxation notices.

Why it matters: The budget package aims to shield county services from possible federal funding cuts and increases in operating costs. County staff singled out the potential loss of Secure Rural Schools funding and proposed federal Medicaid reductions as major risks affecting local programs such as public health, meals programs and emergency management.

Key recommendations and context

- Stability fund and reserves: The county manager proposed establishing a $15,000,000 stability fund to provide a multi'year runway if federal revenues are reduced or emergency costs rise. Mullaney advised the board to formally increase the general fund reserve policy from 15% of revenues to 25%, a change she said "formalizes current practice" rather than immediately reducing available operating dollars.

- Operating adjustments and increments: The…