HomeMy WebLinkAboutConnectivity Summit budget slides 0326262026 Connectivity SummitState of the
General Fund
(GF)
State of the County GF
Highlights
•Financial Picture
•2026 Year-End Projection
•2027 Challenges
•Questions, Discussion,
Input, Ideas
Financial
Picture
All Funds vs General Fund
Revenue, $28,474,383 Expenditure, $29,577,938
All Funds, $86,251,077
All Funds, $95,963,137
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
Revenue Expenditure
2026 Budget
General Fund All Funds
Financial Picture
General Fund
2025 Ending Balance $4.91m
Actual Internal Services reimbursed $314K to General Fund
All appropriated budget wasn’t spent -$1.76m of $3.53m appropriated
2025 Year-End Actual Gap $3.07m
Adopted 2026 Budget with $1.1m Gap
Financial Picture
General Fund
Recommended
Reserve =
15% of Expenditures
Non-reserve =
operating cash
What happened with the GF?
•Revenue has not kept up with costs: inflation (3%+) vs property
tax cap at 1%; tax base relatively small
•Labor costs more: recruitment & retention
•Rising costs not in local control:
•Counties Risk Pool assessments (liability coverage up 35% this year
with no state tort reform)
•public defense caseload standards from State Supreme Court 2025
(with <5% state funding)
•equipment, fuel, etc.
How did we respond in 2025?
•2026 Budget adopted December 2025 includes ~12%
expenditure reduction across GF; more in other funds
•E.g., Parks & Recreation budget reduced by 25% (=$250K)
•Reductions in reliance on One-Time Revenues and
Discretionary Spending
•In 2024 & 2025, Recurring Revenues averaged 96% vs 4% One-Time Revenues
•For 2026 Budget, Recurring Revenues at 99% vs <1% One-Time
•In 2024 & 2025, Non-Discretionary Expenditure averaged 84% vs 16%
Discretionary/One-Time
•For 2026 Budget, Non-Discretionary Spending at 92% vs 8% Discretionary
2026 Year-End
General Fund
Projection
> Cash Flow Projection ends 2026 with $3.85m
> Recommended Reserve should be $4.3m
With Cash Flow Projection below the reserve, we are continuing
to use the reserve to operate the General Fund (GF).
The Washington State Auditor’s Office (SAO) recommends that
governments maintain at least 60 days of operating cash for
financial health.
To maintain a strong position, we should have ~$6.7m in GF.
2027 Big Challenges
•Increase General Fund cash by a combination of bringing
more money in and spending less.
•Categorize state-mandated and non-mandated services
together with their funding sources.
•Negotiate collective bargaining agreements (CBAs) with
employee unions. (CBAs set to expire at end of 2026.)
2027 Budget Process
•January 2026-June
•GF Budget Plan – scenarios, mandated services exercise
•July-September
•Adoption of 2027 Budget Goals, Auditor’s Budget Call,
Preliminary Budget Analysis
•October-December 2026
•Workshops w/ Board of County Commissioners (BoCC),
adjustments as needed, Public Hearing & BoCC Adoption
Questions?
Josh D. Peters, County Administrator
jdpeters@co.jefferson.wa.us