County to absorb larger share of joint department costs under new funding split; officials urge continued joint review

Teton County and the Town of Jackson opened a joint budget meeting April 29 to review proposed fiscal 2026 budgets for departments the two governments operate together, including transit, parks and recreation, fire and emergency medical services and housing. County and town staff emphasized this session was a high-level review and that departments will return for follow-up discussion and decisions.

The meeting focused early on a change in the funding formula for joint departments. Jody (staff) and county staff explained the town-to-county split will shift in FY 2026. The new formula moves $618,000 in operations and $130,000 in capital from the town to the county in the first year — $780,000 total — and increases in subsequent years under the MOU, reaching larger transfers in years two and three. Staff said the MOU requires joint review of all joint powers agreements and funding agreements in the coming year.

Why it matters: joint departments provide core services across town and county boundaries. Staff said the change requires the two governments to coordinate so the departments those entities jointly govern continue to operate efficiently.

County and town budget assumptions diverged in several places. The town proposed a 7.2% wage adjustment and modest sales- and lodging-tax growth assumptions (2% and 3% respectively); the county recommended a 6% wage adjustment and modeled sales and lodging tax at 0% growth. Staff also highlighted that many departments had reduced operating and capital requests before the joint review, leaving some programs “bare bones.”

Fund balance policies and use of reserves were key themes. County Treasurer Katie Smith explained the county’s special-revenue fund-balance policy for joint funds: the county maintains a minimum unassigned fund balance equal to 15% of prior year audited revenues (excluding intergovernmental transfers). “In the event that the fund balance exceeds the 15% threshold, any excess will be utilized in next year’s budget to offset general fund contributions for the town and county,” she said. Treasurers and department directors said they expect to use excess fund balance in some cases (for example, parks and rec) and will develop replenishment plans if fund balances fall below minimums.

Staff reiterated that the April 29 session was intended to set context and identify follow-up questions, not to make final funding decisions. County and town administrators asked elected officials to flag priorities they want discussed in more detail at the next joint meeting and noted a joint discussion block would be available later in the day and in subsequent meetings to reconcile differences.

Next steps: staff will return to the elected bodies with department-level details, specific items the boards may want to restore or cut, and results of planned reviews of joint powers agreements. The joint calendar includes follow-up meetings in early May and June for more substantive board-to-board discussion.

Ending: County and town leaders said they will continue a multi-step process to reconcile the operating and capital impacts of the new split and to identify where either jurisdiction may choose to fund a service independently.