County Council completes series of September budget meetings; October 5th public hearing to follow

San Juan County Council recently completed a series of budget conversations in September 2026, following the August 25th release of the 2027 preliminary budget

||| FROM SAN JUAN COUNTY COMMUNICATIONS |||

At its meeting on Tuesday, Council wrapped up its last budget related discussion scheduled for the month of September and is now preparing for a public hearing on October 5 – its first opportunity to adopt the proposed 2027 budget. The public hearing is the next critical step after a long summer in which the County has worked diligently to reduce a projected $4 million deficit. Like many jurisdictions throughout Washington State, San Juan County deficit is fueled by inflation, increased operating costs, reduced federal and state funding, stagnated revenues, and new state and federal mandates on County services. Throughout this budget-building process, Council has sought to prioritize mandatory and essential functions and mitigate the impacts of the forthcoming reductions to the community as much as possible. 

Council set aside time at multiple meetings in September to engage in more in‑depth budget planning discussions. Below is a summary of the discussions and Council action taken at each of the meetings, which took place on September 8, 21, and 22. 

Capital Projects – As part of approving the annual budget, the San Juan County Council reviews and adopts a capital budget which includes an annual Capital Improvement Plan (CIP) and a Six-Year CIP. At the September 8 Council meeting, Public Works and Environmental Stewardship staff provided an overview of the proposed annual and six-year Transportation Improvement and Environmental Stewardship Clean Water and Marine capital items, respectively, and Council set a public hearing on October 5, 2026, to consider adoption of both. To complete the capital planning process, Tuesday’s meeting saw staff from the County Manager’s Office introduce a list of projects recommended by the Capital Committee for inclusion in the 2027 budget and the 2027-2032 Six-Year CIP and Council set a public hearing on October 5, 2026, to approve all capital in their entirety. 

2026 Current Expense Levy Lid Lift Debrief – At the September 8 meeting, Council revisited the unsuccessful 2026 current expense fund property tax levy lid lift presented to voters back in April and discussed its plans for moving forward. Washington counties use levy lid lifts to increase property tax revenues beyond the strict 1% annual growth cap mandated by state law. Because local government operating costs—such as inflation, public safety, health services, and staff insurance—frequently rise faster than 1% per year, counties experience structural budget deficits where revenue cannot keep pace with expenses. The County’s current expense fund supports critical services such public safety, parks and fair, public health, senior services, and general county operations. Multiple reductions have been made in these and many other areas to balance the 2027 budget, with continued fiscal challenges projected in 2028 and beyond. 

2027 Expenditure Review and Revenue Options– At the September 8 meeting staff led a discussion on the proposed expenditure reductions that have been included in the 2027 preliminary budget and recommended to Council that those reductions be maintained. 

At the September 21 meeting, staff provided additional information for Council’s consideration about four potential sources of additional revenue for the 2027 budget and beyond: a public safety sales tax, a public health clinic levy, the veterans tax levy shift and the developmental disabilities/mental health levy shift. 

Council concluded the last of its three budget related September meetings on September 22 by providing direction to staff on these revenue options as well as the proposed 2027 expenditure reductions. Regarding the available 2027 revenue options, Council decided not to adopt any of the newly established state revenue options. Rather than establishing a new, stand-alone levy, Council opted to further encumber the current expense fund to cover a new state-imposed mandate requiring an additional $320,000 allocation to fund developmental disabilities/mental health. Council clearly communicated that any revenue increases would need to be part of a wholistic consideration of revenues undertaken at a later date through broader community engagement.

October 5 Meeting – Council will hold a series of public hearings on the 2027 budget and all required companion legislation including the CIPs and annual 1% increases to property tax levies. Community members are encouraged to attend the hearing in person or online to learn more about the budget process and provide feedback. All Council meetings are open to the public in the Legislative Hearing Room at 55 Second Street in Friday Harbor or via virtual participation.

For more information on San Juan County’s budget process, past reports, and quarterly updates, visit: https://www.sanjuancountywa.gov/2030/San-Juan-County-Budget.

Questions may be directed to TilleryW@sanjuancountywa.gov.