Budget challenges loom for Island County

Published 1:30 am Thursday, July 2, 2026

Island County is bracing for one of its toughest budget years since the Great Recession as commissioners begin preparing the 2027 budget, though officials say spending cuts may not be inevitable.

During a recent meeting, commissioners said rising costs, capped property tax levies, state mandates and declining financial support from higher levels of government have already forced the county to freeze some positions, including the controversial decision not to refill the Camano Island animal control officer position.

“We are facing one of the toughest budget years we have had since 2008,” Commissioner Janet St. Clair said during the meeting, adding that new reports show counties across the state are in the same financial boat.

In an interview, Budget Manager Susan Geiger said one of the county’s biggest challenges is Washington’s property tax system, which limits annual levy increases to 1% without voter approval. At the same time, employee salaries, liability insurance and other inflation-related costs in the current expense fund — also known as the general fund — continue to rise well beyond the 1% cap.

For example, Geiger said liability insurance costs jumped from $1.7 million in 2025 to $2.6 million this year. She also warned that new public defense caseload standards could sharply increase the cost of providing court-appointed attorneys for indigent defendants. In addition, she said the cost of hiring conflict attorneys has risen significantly in recent years.

Geiger said funding from both the state and federal governments could also be reduced, particularly as Washington grapples with its own budget challenges.

The county’s hiring freeze has drawn criticism, particularly over the decision not to refill the Camano Island animal control officer position. Critics argue the position is needed to protect public safety, reduce the county’s liability and could be funded through a more aggressive animal licensing program. A Seattle television station also interviewed county officials this week about the issue.

Commissioner Melanie Bacon said the county may lose the funding source for the director of Island Senior Resources, meaning the position may have to be paid for out of the current expense fund. She said she would prioritize funding that position over the animal control officer if the county has to choose.

Commissioner Jill Johnson said the county recently authorized hiring an additional employee in the coroner’s office — the first new position there in many years. Without the added staff member, she said, there could be times when no one is available to respond.

Last year, commissioners closed a $600,000 shortfall in the 2026 current expense budget by adopting a criminal justice sales tax to help fund law enforcement and the courts. Because the tax won’t begin generating revenue until September, however, commissioners earlier this year froze most new hiring unless they deemed a position essential.

Geiger said she expects to present commissioners with a budget workbook during the third week of July, formally launching the 2027 budget process. Department heads have been instructed to prepare status quo budget requests.