Chairman Dahl and county finance staff reviewed the proposed 2026–27 biennial budget and warned the county faces a structural gap unless revenues rise or spending is cut. Kathy Funk Baxter, the county finance director, told the Board the county’s beginning fund balance for 2026 is projected at roughly $18–19 million (about three months of reserves), while 2027 receipts are estimated at about $62 million against planned expenditures that exceed $80 million.

"If we don't address this, we're looking at an $8.2 million shortfall," Kathy Funk Baxter said, summarizing staff projections and urging the board to consider options to balance revenues and expenses. The finance director recommended convening a special budget stabilization task force to examine 2027 and forward and to assemble revenue and cut options for the commissioners.

Chairman Dahl outlined an initial set of proposed reductions for 2026 to preserve reserves and reduce pressure on future budgets. He suggested percentage reductions by department, including: superior court (drug court) 20%, juvenile 20%, public defense (OPD) 5% (delaying new standards), clerk 8%, prosecuting attorney 8%, sheriff 10%, auditor 8%, IT 5%, treasurer 8%, assessor 8%, district court 8%, and elimination of general‑fund subsidy to the Expo Center. Dahl said staff should model the financial effect of those cuts and return recommended figures to the board for review.

Kathy Funk Baxter said several budget items had already been workshopped: a resolution adopting the six‑year Transportation Improvement Program (2026–2031); the annual construction program and fixed asset purchases for 2026 (including equipment and vehicles); and a five‑year capital plan that lists the Hall of Justice work with roughly $44.5 million in 2026 projected expenditures. She also summarized a planned dissolution and transfer of a CMH substance abuse administration fund into the human resources fund to consolidate grant and contract management.

Chairman Dahl emphasized the county’s reserve policy and the need to avoid a downward slide in cushion levels. "We’ve built cushions for a reason," he said, noting state auditors prefer seeing more than one month's reserves. Dahl said he didn’t favor raising county taxes and urged departments to "sharpen pencils" to find efficiencies.

The board did not take any final votes on budget adoption at the Tuesday session; Dahl said formal motions and the public hearing were being moved to a later meeting date. A motion to reschedule the public meeting/hearing passed on the floor, with Commissioner Raider moving to reschedule the public meeting to Dec. 23, 2025 and the chair and Commissioner Raider both voting "Aye." Staff will prepare detailed fiscal impact figures for the proposed cuts and present them for commissioner review ahead of the rescheduled hearing.

Next steps: Finance staff will return with modeled numbers reflecting the suggested reductions and the recommended budget stabilization task force will be convened to provide recommendations prior to formal adoption.