Lewis County’s preliminary budget includes anticipated revenues of $179.6 million and expenditures of $196.5 million in 2025, a decrease of 7.8% in expenditures from the 2024 adjusted budget.
“The difference in revenues and expenditures is primarily due to projects funded through the American Rescue Plan Act funds (ARPA), where revenue was received in prior years,” County Manager Ryan Barrett and Budget Director Becky Butler wrote in a memo to the Board of Lewis County Commissioners on Sept. 30.
While the Board of Lewis County Commissioners mandated that department heads submit budget proposals 5% below 2023 actual expenditures, according to the memo, deeper cuts must be considered to address the “structural budget deficit.”
Last week, county officials said there is an approximately $5.5 million difference between expected revenues and expenses. The deficit has been whittled to around $3 million, officials said.
“I do think costs have gone up, just price points, inflation,” Commissioner Sean Swope said Thursday. “And it’s finally starting to catch up with us.”
According to the Sept. 30 memo, the preliminary budget would be balanced by using $3.3 million from the county’s general fund, which would leave an “estimated ending fund balance below the recommendation and best practice outlined by the Government Finance Officers Association (GFOA).”
For Lewis County, the GFOA recommends retaining a fund balance equivalent to at least two months of operating expenses, which would leave $8 million. The memo states the fund essentially counts as a rainy day fund and allows the county to pay unexpected costs.
“Although savings from vacant positions in 2024 and 2025 will likely change the outcome, the structural budget deficit will remain a significant concern, and additional reductions will be needed if revenue continues to decrease,” the memo states.
A structural deficit, the memo states, occurs when expenditures consistently exceed revenue, which leads to “an unsustainable financial situation.”
According to the memo, budget cuts are not unique to Lewis County, as other municipalities look to reduce staffing or adopt a 32-hour work week to address budget shortfalls. But more cuts may be needed in the future.
“With the General Fund's projected use of fund balance for 2024 and 2025 coupled with the use of fund balance in 2023, exploring various options to ensure financial stability in the coming years is critical,” the memo states. “This will include a thorough review of all county expenditures identifying areas where further reductions can be made without compromising mandated services or negatively impacting revenue.”
According to the memo, department heads and elected officials submitted budget reduction proposals that would freeze an estimated 14 positions in addition to the eight positions eliminated already.
Last month, Lewis County Commissioner Lindsey Pollock said the county must look at “middle management” when adopting a budget.
“We’ve taken a big look at open positions and middle management positions, just where the fat is and leaning it down,” Swope said. “Most of our departments run very lean anyways.”
Last year, the county eliminated six positions, including the chief of internal services and the housing and infrastructure specialist, that “conservatively” saved $500,000.
Pollock said Wednesday the county has contracts with the Department of Natural Resources that could bring in an additional $1 million or so in revenue, which could further reduce the deficit, while Swope said there’s been “encouraging growth” on sales tax revenue. The county currently projects a 2% decrease in sales and use tax revenue in 2025 compared to 2024.
The commissioners will host a public meeting on the 2025 budget proposal at 5:30 p.m. on Nov. 14 in the commissioners hearing room at the Lewis County Courthouse. A public hearing on the budget will be held on Dec. 2.
