Kootenai County begins FY27 budget deliberations as finance director flags multi‑million shortfall
June 11, 2026 | Kootenai County, Idaho
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Kootenai County commissioners opened FY27 budget deliberations on June 1, 2026, as Finance Director Brian Falcon presented a preliminary summary showing a multi‑million dollar shortfall under a range of levy scenarios and outlined steps the county could take to close the gap.
Falcon told the board that a 3% property‑tax increase still leaves an estimated $5.6 million deficit, a 2% increase leaves $6.2 million, 1% leaves $6.9 million and a 0% increase leaves a $7.6 million shortfall compared with the FY26 adopted budget. He said the county is budgeting $5.5 million in interest revenue for FY27 and proposed using roughly $2.0 million of that for ongoing costs and reserving the remainder for one‑time capital expenses.
The finance director outlined revenue assumptions and timing tied to state processes: sales‑tax receipts were budgeted up about 6.15% (roughly $281,000) and state revenue‑sharing up about 4.9% (about $432,000). He said liquor revenues are budgeted down and attributed part of that decline to House Bill 967, which diverts a portion of liquor revenue away from counties.
Falcon described several structural changes he plans to present for FY27. He said he will begin budgeting sales tax and state revenue sharing in the general fund rather than the justice fund and will hold emergency funds in the general fund, citing statutory limits on justice‑fund usage. To keep justice‑fund programs funded, he said he will shift a portion of property tax into the justice fund and estimated that change would increase the justice fund’s share of the levy by roughly 10 percent; Falcon framed the change as re‑allocating funding sources rather than increasing the justice fund’s expenditures.
On expenditures, Falcon reported total loaded personnel costs of about $96 million, including $2.5 million in overtime and an estimated $7 million associated with open positions (40 of which have been open more than 100 days). He identified highest vacancy counts in the jail (18), E911 (10), patrol and prosecuting attorney offices (7 each). Departments submitted 12 requests for new positions (about $1.0 million loaded), with the prosecutor requesting roughly $565,000 and the sheriff requesting about $370,000. Forty‑three position‑change requests sum to about $2.3 million, largely from the sheriff’s office.
Falcon also highlighted benefit pressures: he cited a projected FY27 health‑plan cost increase of $2.8 million (about $2.6 million to be covered by general government and $230,000 by solid waste) and said the employer cost per employee is budgeted to rise from $17,783 to $22,332 per year. He described stop‑loss reimbursements as lagging and therefore uncertain, and presented benchmarking work from consultant Alliant on employee and family contributions intended to inform potential plan design changes.
On fees and interfund transfers, Falcon said some non‑tax supported departments (E911, solid waste, airport, vessel and snowmobile, parks) can use restricted fund balances and noted current interfund transfers such as solid waste transferring about $1 million to other departments and a $650,000 transfer from the jail commissary fund to the jail for inmate medical care. He said some fees are constrained by state law and therefore not always adjustable at the county level.
During public comment, Ron Hartman urged a zero‑based budget process, recommended full cost recovery for services (citing Post Falls 911 subsidies and other contracts), and proposed charging a $2 ride fee for transit and other user charges to increase transparency and savings. Falcon and the commissioners did not adopt any immediate policy changes during the session; Falcon said he would provide more detailed historical levy percentages, department‑level revenue allocations under 0% and 3% scenarios, and a list of recommended budget cuts based on expenditure trends.
Falcon reviewed the budget schedule: seven deliberation meetings through July 28, an Alliant benefits presentation on July 8, a preliminary balanced budget presentation on July 30, a budget hearing on Aug. 26 and adoption on Aug. 27. He invited commissioners and elected officials to meet with his office in advance of future hearings.
The board opened public comment again at the end of the session; no one spoke and the meeting adjourned at 10:42 a.m.
Falcon told the board that a 3% property‑tax increase still leaves an estimated $5.6 million deficit, a 2% increase leaves $6.2 million, 1% leaves $6.9 million and a 0% increase leaves a $7.6 million shortfall compared with the FY26 adopted budget. He said the county is budgeting $5.5 million in interest revenue for FY27 and proposed using roughly $2.0 million of that for ongoing costs and reserving the remainder for one‑time capital expenses.
The finance director outlined revenue assumptions and timing tied to state processes: sales‑tax receipts were budgeted up about 6.15% (roughly $281,000) and state revenue‑sharing up about 4.9% (about $432,000). He said liquor revenues are budgeted down and attributed part of that decline to House Bill 967, which diverts a portion of liquor revenue away from counties.
Falcon described several structural changes he plans to present for FY27. He said he will begin budgeting sales tax and state revenue sharing in the general fund rather than the justice fund and will hold emergency funds in the general fund, citing statutory limits on justice‑fund usage. To keep justice‑fund programs funded, he said he will shift a portion of property tax into the justice fund and estimated that change would increase the justice fund’s share of the levy by roughly 10 percent; Falcon framed the change as re‑allocating funding sources rather than increasing the justice fund’s expenditures.
On expenditures, Falcon reported total loaded personnel costs of about $96 million, including $2.5 million in overtime and an estimated $7 million associated with open positions (40 of which have been open more than 100 days). He identified highest vacancy counts in the jail (18), E911 (10), patrol and prosecuting attorney offices (7 each). Departments submitted 12 requests for new positions (about $1.0 million loaded), with the prosecutor requesting roughly $565,000 and the sheriff requesting about $370,000. Forty‑three position‑change requests sum to about $2.3 million, largely from the sheriff’s office.
Falcon also highlighted benefit pressures: he cited a projected FY27 health‑plan cost increase of $2.8 million (about $2.6 million to be covered by general government and $230,000 by solid waste) and said the employer cost per employee is budgeted to rise from $17,783 to $22,332 per year. He described stop‑loss reimbursements as lagging and therefore uncertain, and presented benchmarking work from consultant Alliant on employee and family contributions intended to inform potential plan design changes.
On fees and interfund transfers, Falcon said some non‑tax supported departments (E911, solid waste, airport, vessel and snowmobile, parks) can use restricted fund balances and noted current interfund transfers such as solid waste transferring about $1 million to other departments and a $650,000 transfer from the jail commissary fund to the jail for inmate medical care. He said some fees are constrained by state law and therefore not always adjustable at the county level.
During public comment, Ron Hartman urged a zero‑based budget process, recommended full cost recovery for services (citing Post Falls 911 subsidies and other contracts), and proposed charging a $2 ride fee for transit and other user charges to increase transparency and savings. Falcon and the commissioners did not adopt any immediate policy changes during the session; Falcon said he would provide more detailed historical levy percentages, department‑level revenue allocations under 0% and 3% scenarios, and a list of recommended budget cuts based on expenditure trends.
Falcon reviewed the budget schedule: seven deliberation meetings through July 28, an Alliant benefits presentation on July 8, a preliminary balanced budget presentation on July 30, a budget hearing on Aug. 26 and adoption on Aug. 27. He invited commissioners and elected officials to meet with his office in advance of future hearings.
The board opened public comment again at the end of the session; no one spoke and the meeting adjourned at 10:42 a.m.
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