There’s a hole in Island County’s budget and it’s not clear how it will be filled.

Island County Commissioner Mac McDowell said early projections point to a $1.2 million decrease in revenues for the coming year.

It’s a problem that an abundance of counties and municipalities are facing due to the souring economy.

While sales tax in Island County is down about 10 percent, most of the shortfall is related to housing and construction. Permit fees for new construction are down 30 percent and real estate excise tax is down about 33 percent.

“It’s a hair worse than the impact of Initiative 695,” McDowell said, referring to the repeal of the motor vehicle excise tax, which cut a large chunk from the county’s revenues a few years ago.

Elaine Marlow, the county budget director, said the projections haven’t been finalized yet since the commissioners are still in the midst of the budget process.

During the budget hearings, commissioners listen to presentations from other elected officials and department heads about their budget requests for the coming year. It’s the commissioners’ job to decide which needs are most pressing and can be funded, but to balance the budget at the same time.

The decrease is revenues will make it harder to dole out extra cash, but Marlow said it’s not impossible. If there’s a dire need, she said, the budget can always be shifted around.

“Especially when money is tight, it’s important for county commissioners to listen to what elected officials and department heads are saying,” she said.

McDowell said he’s unsure whether the commissioners will tap into reserves to balance the budget. He claimed that the county was able to cut the budget after Initiative 695 and citizens probably didn’t even notice a change in service.