2025-06-23 Draft of 2026 Budget Call Letter
2005 Budget Instructions Page 1 of 3
TO: Elected Officials and Department Directors
FROM: Board of County Commissioners, County Manager Ryan Barrett
Scott J. Brummer, Chair
Lindsey R. Pollock, Commissioner
Sean D. Swope, Commissioner
DATE: June 23, 2025
SUBJECT: 2026 Budget Call Letter
In accordance with the requirements outlined in RCW 36.40, this memorandum is the official
notice for all elected offices and departments to prepare and submit their Preliminary Budget
Proposals in OpenGov for 2026 no later than Monday, August 18, 2025.
PRELIMINARY 2026 BUDGET OUTLOOK
Lewis County continues to confront structural budget challenges despite significant reductions
during the 2025 budget process. Limited revenue growth paired with rising costs in mandated
services, particularly public defense, employee compensation, and Jail medical services —
continues to exert pressure on the General Fund.
Washington State’s budget is projecting a significant shortfall, prompting both cuts and new
taxes. The State’s narrowed revenue outlook is expected to reduce shared revenues and may
impact funding for foundational public health services. While the State has increased Office of
Public Defense (OPD) funding by $8.3 million annually, Lewis County will receive only an
additional $106,728 from that $8.3 million — far short of the approximately $2 million it costs the
County to provide public defense services.
Compounding this challenge, the Washington State Supreme Court issued new public defense
caseload standards on June 9, 2025. These standards must be implemented on January 1,
2026, and will be phased in over the next 10 years. This mandate will further reduce funding
available for other general government services.
In addition, rising costs for general liability and property insurance, healthcare, and utilities are
further straining the County's ability to sustain current service levels without additional corrective
budgetary action.
However, two positive developments offer some relief:
2026 Budget Guidance Page 2 of 3
Cost Allocation Plan (CAP): Implemented in 2025, the CAP redistributes approximately
$2.5 million of general government administrative service costs (e.g., services provided
by the Auditor, Treasurer, BOCC, County Administration, and Prosecutor) to benefiting
non-General Fund Departments. This equitable funding mechanism reduces the burden
on the General Fund and strengthens the County’s fiscal position.
PERS/PSERS Employer Rate Reductions: Effective July 1, 2025, PERS 1 and 2
employer contribution rates will decrease from 9.11% to 5.58%, and PSERS from 9.51%
to 7.11%. These changes will help offset rising salary and benefit costs across all funds.
The General Fund’s year-end 2024 Fund balance increased due to one-time revenues, which the
BOCC has authorized for one-time expenditures. These numbers are estimated actuals and
remain subject to adjustment pending completion of the State Audit.
As we begin the 2026 budget cycle, Lewis County faces a structural gap driven by unfunded
mandates, inflationary pressures, and little to no growth in revenue. While the Cost Allocation
Plan and reduced retirement contribution rates provide some relief, careful stewardship of one-
time reserves and pursuit of grant funding will be critical to maintaining core services.
EXPENDITURE LIMITATION (GENERAL FUND ONLY)
General Fund offices and departments should budget for programs/services mandated in priority
order. The initial budget for 2026 will be limited to a 5% increase over the 2025 budget for
operations plus 2026 projected salaries, benefits, and preliminary interfund rate allocations.
Salaries and benefits have been preloaded in the budget proposals and do not include a
projection for wage increases associated with a cost of living adjustment. Any increase in costs
related to the negotiated CBAs will be added to the Final Budget as directed by the BOCC.
Expenditures that do not fall within this amount will be discussed during September, October,
and November meetings. Funds receiving an operating transfer from the General Fund will need
to review reductions with the County Manager.
Offices and Departments are encouraged to look for new methods to deliver services and
programs and achieve efficiency and effectiveness. If an office/department seeks to reorganize,
reduce, or add programs and staff, they must prepare a proposal for the Board of County
Commissioners to consider. In this proposal, the office or department must identify funding
source(s), the costs of the proposal, the efficiencies/effectiveness to be achieved, and the
benefits of the new service. Do not include these amounts in your 2026 budget proposals in
OpenGov.
After the Preliminary Budget figures are received in August, third-quarter revenues are reviewed,
and property tax levy information is calculated. Budget adjustments may be necessary beyond
the initial limitation to adopt a structurally balanced budget and maintain sufficient reserves. This
includes a review of internal service rates and operating transfers to funds supported by the
General Fund.
ESTIMATED YEAR-END REVIEW
Year-end projections are critical to the BOCC's decisions. Overestimated expenditures and
underestimated revenues could result in unnecessary reductions or delay budget actions needed
to maintain an appropriate level of reserves. You must review revenue projections for 2025 and
2026. Please pay close attention to them and be as accurate as possible.
All budget forms must be returned, and proposals must be submitted through OpenGov by
Monday, August 18. If you want a cost analysis done or have any questions, contact Becky
Butler at Ext. 1198 or Rudy Rodriguez at Ext. 1233.
2026 Budget Guidance Page 3 of 3
BUDGET TIMELINE
JUNE 23 MONDAY CALL LETTER AND BUDGET INSTRUCTIONS FOR THE 2026 BUDGET
PROCESS DISTRIBUTED TO OFFICES AND DEPARTMENTS RCW
36.40.010
NA
JUNE 27 FRIDAY BUDGET PREPARERS - BUDGET TRAINING COMPUTER TRAINING
RM.
JULY 8 TUESDAY HEARING-2 ND 2025 BUDGET AMENDMENT HISTORIC COURTHOUSE
BOCC HEARING RM.
223
10:00 AM
JULY 9 WEDNESDAY CAPITAL PLANNING 2026 -2030 AND BUDGET DISCUSSION FOR 2026 HISTORIC COURTHOUSE
BOCC Lower Level RM
003
3:00 PM
JULY 10 THURSDAY BUDGET PREPARERS - BUDGET TRAINING COMPUTER TRAINING
RM.
JULY 16 WEDNESDAY BUDGET WORK SESSION WITH ELECTED AND DIRECTORS (ESC)
DISCUSS CALL LETTER
HISTORIC COURTHOUSE
BOCC MEETING
HEARING RM. 210
9:00 AM
JULY 28 MONDAY CITIZENS BUDGET COMMITTEE ORIENTATION TBD
AUGUST 18 MONDAY OFFICES AND DEPARTMENTS SUBMIT 2026 PRELIMINARY BUDGET
RCW 36.40.010-020
NA
SEPTEMBER 9 TUESDAY PRELIMINARY 2026 BUDGETS TO BOCC AND AUDITOR RCW
36.40.050 AND PRELIMINARY 2026 BUDGET REPORTS MADE
AVAILABLE TO THE PUBLIC
HISTORIC COURTHOUSE
BOCC MEETING
HEARING RM. 223
2:00 PM
SEPTEMBER 10 WEDNESDAY BUDGET MEETINGS WITH OFFICES AND DEPARTMENTS HISTORIC COURTHOUSE
BOCC HEARING RM.
223
SEPTEMBER 17 WEDNESDAY BUDGET MEETINGS WITH OFFICES AND DEPARTMENTS HISTORIC COURTHOUSE
BOCC HEARING RM.
223
SEPTEMBER 30 TUESDAY BUDGET MEETINGS WITH OFFICES AND DEPARTMENTS HISTORIC COURTHOUSE
BOCC HEARING RM.
223
OCTOBER 14 TUESDAY HEARING-3 RD FOR 2025 BUDGET AMENDMENT HISTORIC COURTHOUSE
BOCC HEARING RM.
223
10:00 AM
OCTOBER 21 TUESDAY BOCC BUDGET WORKSHOP AND REVIEW OF BUDGET REQUESTS HISTORIC COURTHOUSE
BOCC HEARING RM.
223
OCTOBER 27 MONDAY FINAL BUDGET REVIEW OF PRELIMINARY 2026 AND APPROVAL OF
CHANGES FOR THE FINAL BUDGET
NA
NOVEMBER 12 WEDNESDAY PUBLIC INFORMATIONAL MEETING ON THE 2026 BUDGET HISTORIC
COURTHOUSE
BOCC HEARING RM.
223
5:30 PM
DECEMBER 1 MONDAY HEARING AND ADOPTION OF THE 2026 FINAL BUDGET AND TAX
LEVIES - RCW 36.40.080
HISTORIC
COURTHOUSE
BOCC HEARING RM.
223
10:00 AM
DECEMBER 16 TUESDAY HEARING 4TH FOR 2025 BUDGET AMENDMENT HISTORIC COURTHOUSE
BOCC HEARING RM.
223
10:00 AM