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Budget staff flags departmental overspending and sharp rise in liability costs; board schedules closed session
Summary
Budget staff told commissioners most departments are in the black but some show concerning overspend trends; staff reported a roughly 50% increase in liability insurance costs this year and recommended considering liability reforms for the county's legislative agenda. The board adjourned into closed session on labor/payroll matters.
County budget staff briefed the Spokane County Board of County Commissioners on July 20 on the county’s financial position, noting generally positive revenue performance but several departments that are trending over budget.
Staff reported the county has completed the 13th pay cycle in a 26-pay-cycle year under its new payroll system and that most departments show a positive variance. A subset of departments, however, is overspending; staff said they are meeting with those departments to identify drivers such as PTO-bridge cash‑outs, retirements, grant accounting treatments and possible hiring pauses. Staff warned the new payroll system will not automatically allow ongoing overspends without an explicit override, and said the budget office will return to the board if departments continue to trend over budget.
On a separate miscellaneous item, staff referenced a recent "loss act" paper highlighting liability exposure and reported insured liability costs have climbed sharply—quoting figures from the paper that premiums have increased about 380% since 2018 and claims against the risk pool have risen about 60% since 2021. The presenter said the county expects roughly a 50% increase in its liability insurance cost this year, which materially affects the county’s roughly $30 million deficit calculation in general funds. Staff was asked to provide a spreadsheet or graph that shows liability cost increases over recent years.
Public defense spending also drew attention: staff reported that outside‑counsel costs had consumed much of that department’s annual maintenance and legal budget within six months, flagging it as another watch item.
The board read the closed-session authority as spoken (RCW citation read aloud) and adjourned the public meeting at 10:04 a.m. to convene a closed session on labor/payroll matters.
Why it matters: even with higher sales-tax receipts, rising liability premiums and concentrated departmental overspends could create significant pressure on the general fund and shape the county’s legislative asks and budget‑amendment needs later in the year. Staff will return with requested historical liability figures and any recommended budget amendments.
