(The Center Square) – Spokane County passed its 2025 budget on Monday, decreasing total spending by nearly 6% while using up $57.4 million of its overall fund balance.
The $864.8 million budget pulls back the reins as inflation continues and tax revenues flatline. The Board of County Commissioners managed to balance out $264.1 million in general fund spending, but expenditures across other accounts still outpaced what they’re projected to bring in.
“This is with all funds, and that is primarily because we had more [federal pandemic relief] that we spent in 2024,” Randy Bischoff, senior director of Finance & Administration, said Monday. “We have less of that leftover and being spent in 2025, so that’s really the reason that this money is down.”
Bischoff asked the board to aim low given the shortfalls and told The Center Square that the officials hit the mark without having to use any general fund reserves; however, a beginning fund balance is different, he said, being saved over a period of time for larger expenses planned for the future.
The general fund, roughly 30% of the total budget, typically acts as an indicator of the county’s overall financial health while supporting public safety and government operations. Meanwhile, debt service, enterprise funds, internal services funds and others make up the rest of the county’s spending.
Bischoff said that general fund spending and revenues need to match, and they do, but that’s not the case with these other accounts. Those funds cover anything from public services and specific programs to infrastructure improvements and construction like he had mentioned saving for over the long term.
The county’s special revenue fund will see the most spending next year, totaling $331.1 million, nearly 12% less than in 2024. The board also decreased its enterprise fund spending by nearly 5% to $122 million, its internal service fund by 4.5% to $88 million and debt service by around $100,000.
The only major fund that saw spending rise was for capital projects by nearly 6% to $58.3 million.
Despite the board balancing the general fund, decreasing spending, and voting last month to increase property taxes by 1%, revenues still came up short about $57.4 million outside of the general fund.
According to Bischoff’s data, that discrepancy will cost Spokane County nearly 20% of its beginning fund balance, but he said this doesn’t necessarily reflect on their financial health. The county expects tax revenues to pick back up, with Bischoff hoping to meet this year’s projections by the end of 2025.
Under Bischoff’s projections, Spokane County will start the year with a beginning fund balance of nearly $304 million, wrapping up 2025 with $246.4 million in its ending fund balance. He said the county will continue to rebuild that balance before using it for another long-term expense.
Spokane County wasn’t alone in facing shortfalls, as others across the state, including the city of Spokane and the Legislature, grapple with their own shortfalls. The city is slated to adopt a budget closing a $25 million deficit next week, while the state needs upwards of $12 billion.
“This has been one of the most thorough and comprehensive budget processes I think I’ve experienced here at the county,” Commissioner Al French said. “I just want to compliment [the budget team] on a great job and not only getting the numbers to where we can adopt them but also being in a format that explains it very, very well and easy for the public to follow along.”
