Thurston County commissioners approve 2026-27 budget targets to shrink $36M deficit  

The Thurston County Board of County Commissioners approved preliminary 2026–27 budget targets in a 3–2 vote to narrow an estimated $36 million general fund deficit and keep basic county services intact through the next fiscal cycle. 

The split decision, made during an Oct. 7 agenda setting meeting, set a fiscal path after months of budget discussions on how to close the gap as revenue flattened against rising labor and service costs. 

Board Chair Tye Menser, Vice Chair Wayne Fournier and Commissioner Carolina Mejia backed the motion, while Commissioners Emily Clouse and Rachel Grant voted against the motion.

County Manager Leonard Hernandez presented the “2026–27 Biennial General Fund Budget Target Reduction Scenarios,” showing a 2026 base of $160,808,925.91 against projected revenue of $124,794,371.90.

He said it traced the $36 million gap and projected a sequence of reductions and restorations applied to department budgets. 

Hernandez said each department’s 2026 base budget started at its estimated amount, then a 26% cut to department budgets was applied. From there, about $10 million was spread across departments by size, $9.7 million went to high-priority offices, and up to $5 million came from possible reversions, or funds left unused in prior years. He said the steps form adjusted spending limits that would guide departments through 2027. 

The new alignment trims most department cuts to 10% to 19%, smaller than the 26% cuts previously modeled in earlier drafts. 

According to an update from the county on the issue on Oct. 8, the revisions are expected to shrink the deficit from $36 million to about $11.5 million. 

The Thurston County Sheriff’s Office, which had not faced general fund reductions in earlier cycles, would see one of the lowest cuts at about 4%. The county confirmed the revised targets came after a budget exercise with elected officials and public input. 

“We spent the last several months researching solutions to keep us from having to make these difficult but necessary reductions, and no choice was made lightly,” said Menser in a statement.

“Although these decisions are key to addressing our budget shortfall, the (board) recognizes the impacts these reductions will have on our services, programs, residents, and dedicated employees. We could not be prouder of the work that our county employees do each and every day for the residents of Thurston County.” 

The adopted targets also avoid staffing losses once expected for the Thurston County Emergency Management and Human Resources Department.

Budget and Fiscal Manager Summer Miller said several positions would remain vacant in Emergency Management. Human Resources keeps 11 employees.

Grant declined to endorse the targets.

“I can’t in good conscience support a preliminary budget that reduces funding for public safety,” she said. “Superior Court and the (Thurston County) Sheriff’s Office provide essential services that protect and uphold justice, and they’re not areas that we can afford to cut.” 

Fournier and Clouse warned that using reversion funds — unspent balances from prior years — cannot repair the underlying deficit. 

“When we’re considering reallocation of reversion funds to fill a structural deficit, that doesn’t fix the deficit,” Fournier said. “That just punts the discussion to next year and puts us in the same position.” 

Clouse added that the plan leans on “just one-time revenue” that erodes after 2026. 

Menser said the temporary measures were necessary to prevent service disruptions and maintain public access while revenue trends are monitored. 

Assistant County Manager Joshua Cummings said most departments now function at roughly 80% of previous levels and must control spending to avoid new shortfalls. He said the revised plan supports essential operations, but grants no room for expansion. 

Hernandez said staff expect another $14 million gap in 2027 if tax growth stays flat. Departments must hold vacancies open and restrict discretionary spending until further direction. Mejia then moved to freeze all travel charged to the general fund, a proposal expected to return for a vote later this month. 

According to the county’s budget calendar, a final preliminary review is scheduled for Oct. 22. A legal notice for the preliminary budget will be published on Oct. 30 with a second notice on Nov. 6, and the posting of the preliminary budget on Nov. 12. 

The county is going to issue public hearing notices on Nov. 13, 20 and 27 ahead of a Dec. 1 public hearing. Final deliberations are planned for Dec. 3, followed by certification during the Dec. 9 agenda setting meeting. 

Budget adoption is expected on Dec. 16. Thurston County’s general fund and budget details can be viewed here.