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County staff warns 2026 projections push seven tax-supported funds slightly negative without changes
Summary
County administration presented five-year financial projections showing each of the seven tax-supported funds moving slightly into the red under a 'do nothing' scenario; staff recommended commissioners consider revenue or expenditure adjustments during the 2026 budget process.
Saline County staff on March 11 presented preliminary five-year financial projections that, if no changes are made, would push each of the county's seven tax-supported funds slightly negative by 2026.
County Administrator Philip Haines said the exercise is designed to show the consequences of making no policy or spending changes and to prompt early action. "If you looked at the projection for 2026, each of the 7 funds goes negative," Haines told the board, describing the projection as a "do nothing" baseline. He said options include capturing projected property-valuation growth (he cited preliminary real-estate growth of about 3.5% from the county appraiser) or constraining expenditures.
Haines identified employee costs, particularly salaries and health insurance, as major budget drivers. He said consultants estimate a preliminary health-insurance cost increase of slightly under 5% if the plan is unchanged, and noted the county has begun discussions with employees about salary and benefits for the coming year. He also noted Road and Bridge capital outlay and construction budgets are large categories that could be adjusted; staff had asked Road and Bridge to defer budgeting for special equipment purchases this year to draw down that fund balance.
Commissioners discussed the potential need to change the revenue-neutral rate (RNR) and referenced pending state legislation that could replace the current RNR system with a different approach allowing inflationary increases. Haines said maintaining the RNR while expenses rise forces the county to consider either spending cuts or other revenue adjustments. The presentation did not include final budget decisions; staff framed the projections as a starting point for upcoming budget discussions and scheduled related meetings on road and bridge priorities.
