Budget committee flags long-term strain as members debate up-to-$4 million for sheriff’s office
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Summary
Clackamas County budget committee reviewed midyear results and a general-fund forecast; staff warned an added $4 million for the sheriff’s office could push the county into structural deficits in year eight, prompting debate over levy undercollection, vacancy accounting and whether levy proceeds could reimburse the general fund.
The Clackamas County Budget Committee on Feb. 10 reviewed midyear revenue and expense results and a general-fund forecast that staff said does not yet reflect two items discussed earlier that morning: a $7,000 Molalla pilot payment and a possible additional $4 million for the Clackamas County Sheriff’s Office (CCSO).
Budget staff Sandra told the committee the quarter-to-date packet (July–Dec 2025) was balanced as presented and that, as of the last update, the county expects to be balanced through FY 2026–27. "As of last Thursday" she said, the forecast was balanced; however she warned that the unmodeled, ongoing $4 million expense for CCSO would likely push the county into a cumulative negative beginning around year eight and that it could take until about year 28 to return to balance if the expense continues.
Why it matters: commissioners said the supplemental raises long-term fiscal questions for a county already coping with an undercollected public safety levy and complex vacancy accounting. "We can't sustain this," Commissioner Savas said during the discussion, urging caution about obligating more general-fund support without clearer numbers. Several commissioners and public members said voters were promised positions in the levy that the levy did not fully fund, creating pressure on the general fund.
What staff reported: Sandra said the forecast had been updated to include recent supplementals and revenue recognitions — a $473,000 CCSO grant, $100,000 for a SNAP-related disaster-management allocation and roughly $1.4 million in additional recognized revenue in FY 25–26 — but it still lacked the Molalla pilot payment and the possible $4 million CCSO supplemental discussed earlier. She also explained the county will distribute general-fund support by quarter (25% Q1, 50% Q2, 75% Q3) and perform a year-end true-up.
Levy balances and cash-flow constraints were central to the debate. Commissioner Savas and others noted a top-line levy beginning balance in the packet of $7.3 million but staff corrected that number: "The 7.3 million is the budget," Sandra said, and the actual July–December beginning fund balance is $4.86 million, a $2.5 million shortfall versus budget that reduces what is realistically available. After accounting for contingencies and carry needs, staff estimated about $1.6 million would be truly available — and cautioned that property-tax receipts do not arrive until November, so some levy balance must be preserved for cash flow.
Vacancies and how the budget reflects them were another flash point. Staff explained vacancy factors were applied when the budget was built — in some cases modeling positions as one month filled and 11 months vacant — and said prior committee direction reduced CCSO personnel by about $3.8 million (taken from personnel lines) to meet a board cap on increases. Commissioners said that approach can make the books look like positions are both funded and unfilled, complicating oversight and public expectations about positions promised in the levy.
Board members disagreed on next steps. Some argued the levy’s beginning balances and internal contingencies could cover interim needs without tapping the general fund; others said the undercollection and structural shortfalls meant the county should not commit more permanent general-fund support without a fuller analysis. Commissioner West urged patience for the multi-year work done to date while also pressing for clearer accounting of funded vs. actually filled positions.
What the committee did: no formal action on the CCSO supplemental was taken at this meeting. The committee approved the Dec. 9, 2025 minutes earlier in the session on a 6–0 vote.
What’s next: staff will populate the forecast with the morning items and provide updated modeling. The board also arranged a separate sheriff's office finance work group to answer operational questions and improve communication between staff, the sheriff's office and the public; two public budget-member seats will be appointed to that work group. The Budget Committee’s next regular meeting is April 14, 2026; budget week is May 26–29, 2026.
