Board flags state funding uncertainty for health and social services; school bills squeeze fund balance

The board began its budget cycle by warning of possible state and federal cuts that could affect the Health Department and Social Services. Speaker 2 told colleagues the governor’s office is sending regular updates and that the county has received 'warning signals' that those agencies may face material reductions, which the county could be asked to help backfill.

Finance and board members recommended budgeting to a worst‑case scenario until the state and federal budgets are finalized. Speaker 6 urged the board to plan for substantial reductions and to treat the planning process as if the cuts will happen so the county is prepared.

Separately, speakers explained why the county’s fund balance had fallen since the prior presentation: the county has been fronting large invoices for the new high‑school project. Staff said the county advances payments and then reconciles with the Department of Public Instruction; invoices discussed included individual bills described as roughly $6.3 million, with an overall school project figure referenced as about $59 million and a county loan component of about $6.8 million. Staff said reconciliations typically take about six weeks and the fund balance should recover when DPI returns funds.

Staff committed to set up follow‑up finance briefings with Health Department and Social Services representatives (including Jennifer and team, Rita and April on the county side) so the board can quantify possible exposure and decide on appropriation priorities.

No final cuts or appropriations were voted on during the meeting; staff were asked to return with more detailed numbers for the board’s budget deliberations.