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Island County commissioner warns state budget sweep could hit local infrastructure lending
Summary
A commissioner told the Island County board that the governor’s proposed $75 million sweep of the Public Works Trust Board risks raising borrowing costs for local infrastructure, and reported a meeting with Rep. Rick Larsen and outreach on transportation and housing pressure. The chair announced a public meeting about ICE and emergency response.
During commissioner comments at the Jan. 27, 2026 meeting, a member of the Board of Island County Commissioners raised concern about a proposal in the governor’s budget to sweep $75 million from the Public Works Trust Board, a revolving loan fund the commissioner said has financed local infrastructure projects for decades.
The commissioner said the Public Works Trust Board was established in 1987 and that, to date, the fund has helped finance approximately $3.5 billion in infrastructure improvements for cities and local governments through low‑interest loans. The commissioner criticized the planned $75 million move and said treating the money as a bond would lead to higher costs (an estimated 3–4 percent bond cost versus the program’s typical 1–2 percent loan rates). The commissioner said they will coordinate with regional partners and the Association of Counties to push back.
The commissioner also reported a recent meeting on Camano Island with U.S. Rep. Rick Larsen to discuss comprehensive planning, transportation and transit issues tied to regional growth. The commissioner said federal support for water, septic, transportation and utility infrastructure remains a priority for the county.
Separately, the Chair announced a public meeting scheduled for Jan. 28 with local mayors and Sheriff Felicci to discuss ICE activity and strategies for handling potential interference in emergency responses; the Chair cited earlier incidents where federal agents had engaged during a major wildfire response and said the meeting will be open to the public (but likely without public comment unless the group decides otherwise).
The board adjourned after the remarks; no formal votes on state budget matters or ICE policy were recorded that day.
