County cuts budget deficit by more than half; still seeks $2M in strategic service & personnel cuts

San Juan County will continue to seek ways to balance the budget that prioritize mandatory and essential functions.

||| FROM SAN JUAN COUNTY COMMUNICATIONS |||

Over the past two months, the County has reduced the originally projected $6.6 million deficit in the 2026–27 biennial budget by more than half, bringing it down to approximately $2 million as the Council enters final deliberations.

“Our departments and elected offices have done the hard work of reducing their budgets to meet the needs of the organization,” said Council Chair Kari McVeigh. “In some cases, this has already been extremely painful as departments look to reduce the number of staff, reevaluate services, and find creative ways to pare down all their costs.”

County leadership will continue looking for cost savings to close the remaining $2 million deficit and balance the 2026–27 biennial budget. The Council has issued a hiring freeze (with exemptions allowed for health and safety needs) in an effort to reduce future costs and has asked departments to identify additional positions that can be eliminated. The Council also continues to discuss mandated and discretionary programs, possible changes to the level of County services, and other potential revenue changes in the coming years.  

“Making these kinds of personnel cuts is devastating because we know these are our friends, family, and neighbors who have been dedicating their lives to public service,” said Chair McVeigh. “The services these positions provide, and the people who make them possible, are important to our community. The County’s difficult task is to minimize the impacts felt by eliminating these positions.”      

How Did We Get Here? 

These budget problems are not unique to San Juan County; many other jurisdictions across the state face similar budget challenges. The County’s deficit is due to many factors, including:

• 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. 
• Significant cuts from the federal and state governments are adding pressure to the County’s bottom line. Washington State reduced local public health funding, which in San Juan County, has ended the Regional Medical Officer program which provided back-up local Health Officer support. Funding for the Foundational Public Health Services Fund (FPHS) was cut by $37,000, which helps support the County’s foundational public health operations in the Health Department. Federal funding cuts and the recent shutdown have also handicapped local programs and services, including Washington’s Women, Infants, and Children (WIC) program.    
• 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 the County having not gone to the voters to request a 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.

Next Steps: Budget Workshop & Hearing Dates 

The Council will next contemplate the draft budget on November 25^th. Following that, the Council will hold a public hearing for the budget on December 1 that may be continued for up to four additional days. The community is invited to provide comments during this hearing.  

You can review the County’s budget process, past documents, quarterly reports, and more on the Auditor’s webpages here: https://www.sanjuancountywa.gov/2030/San-Juan-County-Budget.   

Review past meetings and updates: 

Past Updates:

• How Does the New State Budget Impact San Juan County Funding & Programs? Council Reviews Highlights
• Council Sets Priorities for 20206-27 Biennial Budget Amidst Funding Challenges  
• Federal Shutdown Impacts on Local Public Health
• Federal Shutdown Update: Supporting Food Access During the Shutdown

Past Meetings:

• September 23 & 30: 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.
• October 7: Council held a revenue public hearing.
• October 20 & 21: During these workshop meetings, the Council reviewed department-specific budgets
• November 3 & 4: Council continued to discuss department-specific budgets and provided direction regarding further operational budget cuts. 
• November 10: Council heard final presentations from departments and discussed decision package requests.

Questions? Contact: accounting@sanjuancountywa.gov