Washington County anticipates $20.5 million gap in next year’s budget

A $20.5 million difference between projected revenues and expenditures in Washington County’s budget for next fiscal year will be the focus of a special meeting of the county’s budget committee on March 18.

The projected gap is anticipated in the county’s General Fund, the part of the budget that policymakers have the most flexibility over when it comes to spending decisions.

Under Oregon budget law, the county must close the anticipated gap to balance the proposed budget for the new fiscal year that starts on July 1. Once difficult decisions have been made to cut General Fund-supported services, officials plan to share a balanced, proposed budget with the Washington County Budget Committee on April 28.

“Our ability to balance the General Fund continues to be constrained by limited property taxes and other discretionary revenues which no longer cover the cost of the community’s growing need for our services,” said County Administrator Tanya Ange. “This ongoing challenge means the cost of services is outpacing our ability to fund them through the General Fund.”

Anticipated cuts to services for the community
Washington County, which has the lowest permanent property tax rate among the counties in the Portland region(Link is external), has needed to make budget-balancing cuts for the four years leading up to this year.

For General Fund-supported services, the county’s departments and offices were instructed earlier this year to provide reduction scenarios at the 10%, 13% and 17% levels. County leaders will choose from some combination of these reduction scenarios to build the proposed budget to be released on April 28.

“We have sought to preserve services as much as possible that the community relies on. Although we are continuing this approach again for a fifth year in a row, there is now no other place to turn than to consider eliminating some services altogether,” said Ange.

Chronic underfunding prompting study of new revenue sources
During the last four-year period of budget cuts, Washington County has seen increases in both population and operational costs in areas such as fuel, equipment, health insurance and others. In the meantime, Oregon’s property tax system restricts the growth of assessed values to 3%, with the limited exception of new construction. These two trends – the growing demand for services and the limited growth in property tax revenue – have combined over time to produce a recurring mismatch of too much service cost with too little property tax revenue. Increasing mandates from the state government to cover new programs and comply with new policies – without the new funds to do so – have also been a factor.

Washington County is not alone. Other local governments relying on property tax revenue in Oregon have also recently announced budget shortfalls anticipated for next fiscal year. Roughly a third of Oregon’s 241 city governments are facing similar challenges, according to a survey by the League of Oregon Cities.

Within this context, Washington County leaders are also beginning to explore additional sources of revenue as the FY 2025-26 budget is being built. Temporary increases in property taxes, called local option levies, are anticipated for property tax measures supporting library and public safety services that expire in 2026. Increased fees for other services are also being considered for future years.

Budget Committee meetings
Washington County has four distinct budget committees: the Washington County/Service District for Lighting No. 1, Urban Road Maintenance District, Enhanced Sheriff’s Patrol District and the North Bethany County Service District for Roads budget committees. These committees focus on their specific areas and some committees have shared memberships.

Members of the public are encouraged to participate in this year’s budget process in a variety of ways:

• Review the Fiscal Year 2025-26 Proposed Budget Summary when it is posted to the Washington County website on April 28.
• Attend any of the budget meetings or public hearings virtually and provide comments at designated times. The public may also attend in person at the Charles D. Cameron Public Services Building, Auditorium, 155 N. First Avenue in Hillsboro.
• Meetings will also be livestreamed from the County’s YouTube channel.(Link is external) (Link opens in new window)
• Meeting dates and times include:
  • Tuesday, March 18, 2025 – 7:30 to 8:30 p.m. — County Budget Committee hears an update on the General Fund forecast and its context.
  • Monday, April 14, 2025 — 6 to 8 p.m. — County Budget Committee receives an orientation to the budget’s structure and the process toward approval and adoption.
  • Monday, April 28, 2025 — 6 to 8 p.m. — County Budget Committee hears presentation of the budget message for FY 2025-26.
  • Monday, May 12, 2025 — 5:30 to 7 p.m. — Budget Information Session hosted by the Washington County Board of Commissioners. More details will be released soon.
  • Wednesday and Thursday, May 14 and 15, 2025 – 9 a.m. to 6 p.m. – County Budget Committee begins receiving presentations about the proposed budget with briefings on each of the organization’s functional areas.
  • Tuesday, May 20, 2025 – 9 a.m. to 5 p.m. – Washington County Budget Committee will hold a public hearing, followed by deliberation and a potential budget approval vote. Service district budget committees will also begin presentations, public hearings and potential budget approval votes, including the Service District for Lighting No. 1, Enhanced Sheriff’s Patrol District, Urban Road Maintenance District and North Bethany County Service District for Roads. Public testimony is welcomed prior to committee action on each budget. Register in advance by visiting the How to Testify webpage(Link opens in new window).

Washington County is a leading-edge, mission-focused organization that successfully serves the community now and in the years ahead. We are a human-centered organization that integrates equity into decision-making and supports the health, effectiveness, creativity and talents of our employees as public servants and the residents whom we serve. The organization is supported by a budget of $2.1 billion and is staffed by 2,443 full-time equivalent employees serving a diverse and growing population of 611,389 on the western side of the Portland metropolitan area. More information about Washington County can be found at washingtoncountyor.gov(Link opens in new window).