Council reviews HB 2442's new local revenue tools as WSAC warns counties face significant fiscal pressure

San Juan County Council on April 27 received briefings on House Bill 2442—s new fiscal options for local governments and on a statewide county fiscal-health survey that flagged widespread budget pressure.

Deputy County Manager Tillery Williams summarized HB 2442, signed March 25, 2026, as an omnibus measure that expands allowable uses of existing local revenue and creates several new local options. Williams highlighted a new 0.01% sales-and-use tax targeted to children and families (implementable by the council without a public vote) and said it could fund child care, perinatal support, before-and-after-school services, workforce capacity building, shelter and rental assistance, and client transportation. "This section of the bill goes into effect on 01/01/2027," Williams said.

Mark Tompkins, director of Summit County Health and Community Services, estimated that if San Juan County enacted the 0.01% child-and-family sales tax, it would raise roughly $80,000 per year at current local sales volumes, and cautioned that allowable uses must be read closely.

Williams also described expansion of the housing sales-and-use tax so revenue may fund operations, maintenance and rental assistance for existing affordable units; a change that could broaden how counties use that revenue. HB 2442 also lengthens possible levy-lid-lift durations (single-year lifts may be authorized for two consecutive years and multiyear lifts up to 10 years, effective 07/01/2026) and permits counties to levy a separate property-tax rate (up to $0.05 per $1,000 assessed value) specifically for the operation, maintenance and capital costs of public-health clinics outside the $5.90 aggregate limit.

When the county asked the assessor for a local example, the assessor reported that a 5¢ per $1,000 levy at current assessed values would generate approximately $741,000 in San Juan County, a figure council members said is useful for budgeting discussions but noted will depend on final local choices and assessed values.

Following the HB 2442 briefing, Paul Jewell, government relations director for the Washington State Association of Counties (WSAC), presented results from WSAC—s recent fiscal-health survey: 37 of 39 counties responded and 32 of 37 reported their 2026 budget pressure was either "significant" or "severe." Jewell attributed pressures to several drivers including wage and cost-of-living increases, unfunded state mandates, liability and insurance cost increases, the end of federal ARPA/CARES funding, inflation and slower new-construction growth affecting property-tax bases.

Jewell said counties are responding with a mix of spending reductions, use of reserves (many counties are using significant portions of reserves in 2026), fee increases, levy lid lifts and occasional interlocal bonding. He warned that using reserves and one-time revenues is not sustainable long term. He also described WSAC—s ongoing advocacy (including legal strategies on public defense funding) and said the association is exploring a comprehensive "state of the counties" report to better educate legislators and the public about structural funding constraints.

Council members asked for more granular data and recommended staff continue analyzing HB 2442's components, including a close review of allowable uses and precise local revenue estimates. Multiple councilors expressed concern that the state is shifting responsibility and fiscal burden to local governments; they asked staff to return with targeted analyses to inform any decision to exercise new local taxing authority.

The council took no immediate action to adopt any new taxes or levies at the meeting; staff will continue preparatory work and bring more detailed cost and program implications to the council for future decisions.