Comptroller warns Washington County budget will need tough choices as expenses outpace revenue

Comptroller Sherman told the Washington County Quorum Court Finance and Budget Committee on Aug. 10 that the county is roughly 58% through the fiscal year while the general fund stands at about 51% spent, leaving less carryover for next year if departments’ current requests remain unchanged.

"We're 58%, through the year. The general fund right now is at 51%, and they do have 8 percent encumbered," Sherman said, adding that departments routinely encumber funds for known upcoming expenses. He noted the county provided a $2,000,000 appropriation earlier for employee health insurance and so far has used roughly $400,000 of that allotment.

Sherman said three priorities will shape the budget discussions: labor costs, building infrastructure and IT investment. He told the committee the budget documents will be issued to members by Aug. 15 so they can review departmental requests and submit questions. "The 3 big rocks that I see are labor … Building infrastructure … and then the 3rd one is IT, where we need investment," he said.

Sherman flagged structural pressures: over the last three years, he said, expenses have outpaced revenue in major funds and that will reduce carryover balances used to smooth future budgets. He also noted the county holds roughly $15,000,000 in reserves covering the statutory 10% holdback, but reductions to that cushion over multiple years would force harder tradeoffs.

The comptroller recommended that committee members come prepared to question departmental justifications and suggested staff will return with more targeted briefings (including an IT brief next month) to inform decisions. The committee did not vote on a specific budget change at the meeting; Sherman framed the session as an informational step ahead of the formal budget review and amendments.