Cowlitz County faces multi‑million deficit for 2026; commissioners weigh cuts and voter options
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Summary
Finance staff told commissioners projected 2026 expenses of about $74 million versus estimated revenues near $61 million, leaving a roughly $13 million shortfall; staff proposed April budget guidance, department reviews and possible voter measures such as a public‑safety sales tax to address long‑term gaps.
COWLITZ COUNTY — Finance staff gave commissioners a comprehensive update on county finances, reporting a projected gap between 2026 planned expenditures and expected revenue and recommending an earlier, more directive budget process to set 2027 targets.
Finance director said the county’s cash balance is about $1.75 million and projected 2026 revenues on a cash basis near $61 million while expenses are budgeted near $74 million, leaving roughly a $13 million shortfall. Staff described a series of one‑time reductions already taken — including using opioid fund interest, reducing IT and risk transfers and cutting capital transfers — and said they are evaluating additional measures including levy options, utility tax changes and reallocation of certain special revenues.
Commissioners discussed establishing a clearer departmental guidance early in the year so departments can plan within constrained expectations. One option staff outlined is pursuing a public safety sales tax or a law & justice tax to shift some sheriff/corrections costs away from the general fund; staff said such measures could be placed before voters but cautioned about timing and optics.
Commissioners asked staff to prepare data for an April series of budget review meetings and to analyze the fiscal impact of a potential public safety sales tax, including what it would fund and how it would affect the general fund. Staff warned that, depending on cash flows early in 2027, the county could face tight cash positions in the first two months if adjustments are not made.
The board gave direction to return in April with more detailed departmental analyses and revenue options; no binding budget decisions or tax measures were adopted at the meeting.
