With spending outpacing revenue, Pierce County calls on Legislature to fund services
Pierce County Council members and Executive Ryan Mello held a special study session on Jan. 6 to ask state lawmakers for support in funding essential county services in the upcoming session.
Mello told senators and representatives the county needs $20 million from the state to continue funding core public services in Pierce County, like public safety, behavioral health, courts, homelessness and capital infrastructure projects.
Property and sales taxes account for 67% of Pierce County’s general fund revenue, “However, the growth of these revenues does not keep pace with rising expenditures and is expected to slow in the coming years,” county staff said in a finance report. “Current revenue streams are insufficient to meet both current and future service demands.”
As reported by The Olympian, the state is facing a projected operating-budget gap too — between $10 billion and $12 billion.
In a Zoom presentation to lawmakers, including House speaker Rep. Laurie Jinkins (D-District 27), Rep. Dan Bronoske (D-District 28), Rep. Sharlett Mena (D-District 29), Rep. Matt Marshall (R-District 2), Sen. Steve Conway (D-District 29), Rep. Michelle Caldier’s office (R-District 26), Sen. Chris Gildon (R-District 25), Sen. T’wina Nobles (D-District 28), Sen. Deborah Krishnadasan (D-District 26) and Rep. Mari Leavitt (D-District 28), the council and executive discussed the needs of their districts and urged representatives to speak up on their behalf. Lawmakers listened to the presentation and expressed the desire to continue collaborating in the future.
Among Pierce County’s main legislative priorities are:
Supporting the establishment and operating of existing and new therapeutic courts
Providing additional resources to address high indigent-defense caseloads
Funding jail diversion programs to assist people with mental health or substance use disorder to participate in treatment and rehabilitation
Improve Medicaid reimbursement rates and promote flexibility using funds for programs that support outpatient and inpatient detox
Reform and expand childcare access
Expand infrastructure investments for the preservation and development of affordable housing
Sustain ongoing housing and homelessness programs, including rental assistance, funded through the Document Recording Fee
Reduce youth gun violence, intimate partner gun violence and other forms of gun violence
Support longer term ferry maintenance
Request state funding assistance in upgrading the Sprinker Recreation Center
Fund pre-development for affordable housing on county-owned land in Frederickson
Restore fish passage at Chambers Creek and Canyon Road
Replace the Milroy Bridge over the Puyallup River
Support efforts to respond to the challenges of climate change at the state level by promoting land conservation and carbon sequestration projects in state forests, supporting initiatives for clean building code implementation and energy efficiency and supporting expanded clean energy transportation options
Supporting legislation that increases opportunities to reskill, upskill and respond to changing workforce needs in the economy
Supporting legislation to identify tax and regulatory burdens on the small business community, affecting such factors as insurance, labor and rent, and make recommendations to repeal, suspend or revise those that are unduly burdensome
While pursuing transitions to clean energy sources, ensure timelines and infrastructure costs are not disproportionately passed onto ratepayers, especially those already most burdened by the costs of housing, utilities and other necessities
More than 75% of expenditures in Pierce County’s $896.7 million general fund budget for 2024-2025 provide for public safety or legal and judicial services. Salaries and benefits make up 69% of the general fund budget, according to the county.
Property-tax revenues have generally increased 2%-3% each year, but growth is anticipated to decline as the pace of construction slows in Pierce County, according to the staff report. State law limits revenue growth from existing properties to 1%. Sales-tax revenue fluctuates based on economic conditions, and economic forecasts suggest slower growth ahead, according to the county.
“As expenditures increase at a higher rate than revenue, Pierce County will experience a structurally unbalanced budget, where expenditures exceed revenues, beginning in 2025,” the staff report said. “Beginning in 2025, General Fund expenditures exceed revenues by approximately $20 million. While General Fund reserves can temporarily address revenue shortfalls, a long-term solution is necessary to align spending on essential County operations and services with the slower growth in revenues.”
This story was originally published January 7, 2025 at 5:15 AM.
