San Juan County will continue to seek ways to balance the budget that prioritize mandatory and essential functions, while not disproportionally decreasing services to the community.
||| FROM SAN JUAN COUNTY COMMUNICATIONS |||
During the September 23 and 30 meetings, the County Council discussed strategies for balancing and preparing the 2026-27 biennial budget. Auditor Natasha Warmenhoven and County Manager Jessica Hudson led discussions with Council about the biennial budget process and projected challenges to presenting a balanced budget.
Draft budget forecasts show that the County is facing a significant deficit over the next two years – specifically, a projected $6.6 million deficit in 2027, likely due to several factors:
- During the COVID 19 pandemic, and in the recovery period that followed, the County was substantially supported by federal funding – particularly ARPA funds. The stimulus bill brought approximately $2.1 million into the County’s Current Expense Fund that stretched through 2025. An additional $1.2 million of federal funding supported the Public Health Coronavirus Response. This funding is no longer available.
- Expenses have increased in the Current Expense fund over time, with the cost of ongoing operations, specifically insurance costs, staffing, and inflation rising steadily over time. Stagnated revenues, including decreasing federal funding across multiple departments and no levy lid lift since 2020, have also contributed to the deficit. Increased expenses outweigh revenues in the Current Expense Fund as cash balances are projected to be fully consumed in the 2026-27 biennial budget.
These problems are not unique to San Juan County with many other jurisdictions across the state facing similar budget challenges. San Juan County will continue to seek ways to balance the budget that prioritize mandatory and essential functions, while not disproportionally decreasing services to the community.
The Budget Process
County departments have submitted their status quo budget worksheets and decision packages to the Auditor’s Office. The Auditor’s Office compiled budget worksheets, reviewed decision package requests, and started balancing funds and cash balances. The County’s Budget Team has met to discuss the initial cash balances of the Current Expense fund.
During a series of meetings this fall, the Council will continue budget discussions which will provide direction to staff. A preliminary budget will be brought to Council on December 1, 2025. At this time, Council will hold a public hearing to accept comments from the community.
Council Direction
During the September 23 and 30 meetings, the Council engaged in a conversation about priorities for the 2026-27 biennial budget. They discussed mandated and discretionary programs, possible changes to the level of County services, and other potential changes to revenues and expenditures.
Council’s guidance on how to move forward with balancing the preliminary budget included direction for each department to attempt to reduce operating costs by approximately 10%. This includes a hiring freeze (with exemptions allowable for health and safety needs) in an effort to reduce future costs.
Next Steps: Budget Workshop & Hearing Dates
- October 7: Council will hold a revenue public hearing. The community is invited to provide comments during this hearing.
- October 20 & 21: During these workshop meetings, the Council will dive deeper into the biennial budget and review department-specific budgets with leadership.
- November 4: Council will continue to discuss the budget and provide direction during this workshop meeting.
- November 25: Council will continue to discuss the budget and provide direction during this workshop meeting.
- December 1: Public Hearing for the budget that may be continued for up to five additional days. The community is invited to provide comments during this hearing.
The public is invited to tune into these meetings and provide feedback. Review the County’s budget process, past documents, quarterly reports, and more on the Auditor’s webpages here: https://www.
Questions? Contact: accounting@
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