Clallam County pursues "allowable" 2026 budget, narrows underspend assumption amid staffing concerns

Clallam County officials told the Board of County Commissioners on Nov. 4 that they will pursue an "allowable" 2026 budget that relies on one‑time adjustments and prepayments to meet the legal adoption deadline, while simultaneously reducing the assumed underspend used to balance the budget from 3% to 2%.

The county administrator described two approaches staff had modeled: an "allowable" budget that uses onetime financial adjustments to meet the statutory adoption requirement, and a "balanced" approach that would align only recurring revenues with recurring expenditures. Officials said a fully recurring balanced plan would require reductions equivalent to roughly 11 full‑time positions based on the county’s fully loaded average cost of about $120,000 per position.

Why it matters: the allowable approach buys time but is not a long‑term fix. Commissioners were briefed that recent one‑time items — prepaid grants and other adjustments — make the allowable path possible for 2026 but that many of those offsets will not recur. Reducing the underspend assumption from 3% (about $1.2 million) to 2% (about $800,000) creates roughly a $400,000 gap in the general fund that staff must close while keeping an adopted reserves floor of $12.5 million.

What commissioners directed: staff said the board asked that departments pursue the allowable budget approach, but that every vacant position (except correction and juvenile correction officers, which are exempt because of statutory custody duties) should be subject to an "intense review" rather than an across‑the‑board hiring freeze. Departments will submit position‑needs assessments, and HR, finance and the county administrator will add an additional review layer that can include the board for prioritization.

How staff plan to find savings: presenters outlined a mix of options — deferring capital purchases where feasible, buying refurbished equipment, renegotiating contracts, and narrowing nonessential operating spending — while prioritizing public‑safety functions (courts, clerk, sheriff, coroner, juvenile services). The board discussed applying reductions proportionally, suggesting roughly one‑third of necessary reductions come from public safety and two‑thirds from non‑public‑safety areas if cuts prove unavoidable.

Next steps and constraints: staff will inventory current vacancies and apply the intensified review process. Commissioners emphasized caution about overstating potential cuts to voters and urged staff not to present hypothetical service threats tied to the pending levy lift. Staff said they will return with refined numbers and schedule‑d requests for any operating changes or capital deferrals.

Provenance: The budget approach and underspend decision were introduced in the county administrator’s overview (00:01:24) and discussed throughout the session (last referenced 01:36:00).