Whatcom County is set to begin two-year budget talks. Here are some key challenges

Whatcom County Council members are beginning their budget talks for the next two years amid a hiring freeze, a $15 million deficit and the uncertainty that supportive pandemic-era income sources are ending.

Their first meeting is set for 9:30 a.m. Tuesday during a special Committee of the Whole session in Council Chambers at the Whatcom County Courthouse, 311 Grand Ave. The meeting will be live-streamed and recorded.

In his May budget message, County Executive Satpal Sidhu said his administration is proposing a “financially sustainable” spending package. He touted several recent initiatives and accomplishments, including “substantial investments in child care, housing and homeless services, criminal justice and crisis response, flood response and recovery, the Racial Equity Commission.”

Sidhu recognized that several budget constraints were looming, and he ordered a 90 hiring freeze in July in the face of a $15 million deficit this year.

Whatcom County, like many government organizations, uses a two-year budget cycle that is called the “biennum” by government officials.

“However, significant expansion in criminal justice staffing during the 2023-2024 biennial budget process and 2024 mid-biennium adjustments have put the county in the difficult position, as deficit spending begins to erode our General Fund balance,” Sidhu said in his May message. “With increased services demands and large pending capital projects ahead of us, we must be resolute in ensuring fiscal prudence as we approach this next biennium.”

Whatcom County’s 2023-24 budget was $238 million. Property taxes and retail sales taxes make up nearly all of county revenues.

Retail sales taxes were flat earlier this year as interest rates remain high and inflation is still a concern, Sidhu said.

Programs that are putting pressure on the budget are “substantial increases in both staffing levels and wages” over the past two years, he said.

He called for “strict fiscal discipline” amid economic uncertainty during the budget development and approval process.

“We are aware that departments have pressing needs to advance their current initiatives and undertake new ones to improve efficiency. During the biennial budget process, we ask departments not to propose any new programs or services out of the General Fund. We encourage departments to look closely at base budgets and identify opportunities to reprioritize resources to achieve their goals,” Sidhu said.