If county can’t raise revenue, it may cut employees, services

By Emma Maple

PORT ANGELES — When Clallam County employee Greg Helwick went to work on Nov. 15, he expected it to be a normal day. At 62 years old, he’d been with the county’s information technology department for 24 years. He’d bounced around the idea of retiring in a year or two, but he was happy in his position as network services manager.

On that particular day, Helwick had to leave early for a 3:45 p.m. doctor’s appointment. While he was getting ready to go, he was asked to step into the director’s office. At that point, he said, his radar went off.

During a 15-minute meeting, Helwick said he was told his position was being eliminated and he was on administrative leave, effective immediately.

The county didn’t have enough money in the 2025 budget to continue to fund his job.

Helwick’s was one of seven full-time positions that were eliminated during the county’s effort to balance its 2025 budget. Other positions were left unfilled or had hours reduced.

Many departments have to spread the increased workload among the remaining employees.

Unless something changes, the county likely will have to continue tightening its belt as it moves into 2026. Services might be cut, or more employees might end up with Helwick’s experience.

Building the 2025 budget

When the county started building its 2025 budget, initial assumptions revealed an almost $4.2 million operating deficit. To close that gap, the three commissioners directed each of the county’s 18 departments to complete a “7 percent” exercise, in which departments had to reduce their impact on the general fund either by finding alternative revenue streams or reducing expenses.

Many departments had to make tough decisions.

“I think you can always tweak 1 to 3 percent of a budget,” county Administrator Todd Mielke said. “When you get above 5 percent, you’re beginning to get into the meat of programs.”

Departments reduced supplies, software, equipment, travel and more. But, given that the county’s general budget is 74 percent personnel costs, some department heads said the only way they could reach the goal was to cut personnel.

Some employees, realizing their position would be eliminated, decided to move on to other jobs, Mielke said. Others moved to open positions in other departments.

Helwick was not as lucky. Although the IT department tried to reach its 7 percent mandate by reducing hardware and software costs, interim director Monicka Anderson said those savings amounted to less than 2 percent.

At that point, she said, the only way to reach 7 percent was to reorganize the department and eliminate Helwick’s position. That saved the department about 4.5 percent.

Now, Helwick said he isn’t really sure what to do with all his free time. He feels a mix of emotions.

“On the one hand, I understand the realities,” he said. “But on the other hand, I’ve been here. I’ve put in the times. I’ve done the midnight hour. I’ve taken my laptop when I go on vacation.”

Helwick said he’s also mourning the little things that would have come if he’d formally retired from the county — things like going out to dinner with his team.

Looking to 2026

Although the budget cuts impacted county employees and departments, Mielke said they likely won’t change the county’s public face. At least, not this time.

Another deficit seems to be on the horizon, largely due to the fact that expenses are continually rising faster than income. Even if everything else remains the same, Mielke said personnel increases alone likely will cause a deficit.

Generally speaking, Mielke said employees get a cost-of-living increase of about 3 percent each year. Each full-time employee also gets a 2.5 percent “step” increase for the first nine years of employment.

Assuming 50 percent of employees will get that step increase, personnel costs alone will cost about $2 million more next year, Mielke said. And there are still other cost increases that are sure to happen, such as inflated insurance rates.

Even though the year has just begun, Mielke is weighing his options for when budget season rolls around.

“I don’t know that we can do across-the-board cuts next year,” he said. “That exercise bottomed out some departments.”

Some departments are legally obligated to provide certain services, and further cuts would bar them from meeting those obligations, Mielke said.

“I don’t have any more rabbits to pull out of my hat,” he said.

Other municipalities are feeling similar pressures as they begin to cast an eye toward future budgets, with King County predicting a $150 million budget shortfall for its 2026-27 budget.

If counties can find revenue to offset their rising costs, they won’t have to cut people or services.

However, revenue collection has limits. Counties can collect up to $1.80 of property tax per $1,000 of assessed value, but they are only allowed to increase their property tax collection amount by 1 percent each year, excluding new construction, without voter approval.

So, if the county collects $1 million in property taxes, next year it can only collect $1.01 million — even if property values have increased.

Counties can collect up to $1.80 of property tax per $1,000 of assessed value, but they are only allowed to increase their property tax collection amount by 1 percent each year, excluding new construction, without voter approval.

This means that each year, as house valuations climb, the amount of money the county collects per $1,000 of assessed value will drop. Currently, Clallam County is collecting just less than 76 cents per $1,000 of assessed value, Mielke said.

That 1 percent isn’t close to enough to address inflation costs, Mielke added.

Each year, as house valuations climb, the amount of money Clallam County collects per $1,000 of assessed value will drop. Currently, Clallam County is collecting just less than 76 cents per $1,000 of assessed value, Mielke said.

The commissioners could place a levy lid lift on the ballot. In the past, Mielke said the commissioners have tried to avoid competing against similar resolutions from fire districts, school districts and hospitals.

“I don’t know that we would have that luxury [in the future],” Mielke said.

Alternatively, state House Bill 1334 proposes allowing counties to raise total collection by 3 percent each year without voter approval, rather than the current 1 percent. If that becomes law, commissioners could pursue that option.

But unless revenue streams increase, Mielke said, “I don’t see any way to put together the 2026 budget without significant impacts that would be seen by the community.”

That could involve cutting county departments and services that are not required by the state, such as the county parks department, the fair, law enforcement in unincorporated areas and more, Mielke said.

He added he is keeping a close eye on the situation.

“I’m watching every economic indicator, tracking sales tax collections,” he said. “Those are all things I’m looking at.