PORT ANGELES — Clallam County has cut its projected 2026 general fund deficit by more than two-thirds, but commissioners still have final adjustments ahead.
CFO Mark Lane told commissioners the county began the process with a $3.26 million gap. Updated revenues and targeted reductions have now lowered that shortfall to about $893,000.
Lane said most of the improvement came from revised criminal-justice cost-recovery calculations with Port Angeles and Sequim.
“Probably the largest component of that is in the recurring (revenue) area, where we picked up $1.6 million in recurring revenue. I’d say a good portion of that is related to our criminal justice interlocal agreement,” said Lane.
Correcting those charges adds nearly $2 million in new revenue.
Lane said payroll costs also dropped after removing positions tied to the discontinued jail road-crew program.
“What’s really driving that is the reduction of two and a half positions within the jail crew staffing model. We adjusted our budget based on the loss of the road crew revenues,” said Lane.
That reduction saved about $362,000.
Expenditures are up slightly due to insurance adjustments and the Clerk’s Office transition to the Odyssey system, though nearly $1 million in capital spending is fully grant-funded.
Several pieces — including final labor contract impacts, indirect cost updates, and $200,000 in ARPA support — will be added before the December 2 budget adoption, which Lane says should narrow the deficit even further.
Lane also warned payroll underspend will likely shrink as hiring improves.
He said the county remains on track to present a fully balanced 2026 budget next month.