The Jefferson County Board of County Commissioners has a simple but huge problem. The government is spending more than it takes in. Beginning in January we’ll see whether the board, with its newest member, is up to the challenge.

Between 2011 and 2016, general fund revenues were essentially in line with expenditures. The budget was balanced. But beginning in 2017, commissioners fell into the trap of deficit spending. It continued into the current budget year and the trend line indicates chronic deficit spending through 2022. To make up the difference, the county must tap the unreserved fund. 

With projected 2018 general fund expenditures of $19.46 million and projected revenues of just $18.6 million – and no improvement in these trends in the foreseeable future – a real problem emerges. The county freely admitted this in its 2018 budget presentation, noting that, “over the next 5 years without new revenues, and even before a recession, we expect to need to use most of the unreserved fund balance to maintain existing service levels,” estimating that the fund would be drained by 87% within five years. 

To its credit, the BoCC took a step to solve the problem by green-lighting the Pleasant Harbor Master Planned Resort in Brinnon, ushering in new potential revenue streams of millions of dollars as the MPR is built out. But even this modest effort to grow the tax base and invigorate the local economy is being challenged by a small minority that has taken the board’s decision to court to block through litigation what they failed to stop through the legislative process. 

The county’s budget problems extend beyond squabbles over the Brinnon resort. While the population of Jefferson County has grown more than 18% since 2000, the number of kids in school has dropped across large areas of the county. Port Townsend school enrollment ticked-up this year, but Chimacum and Quilcene schools have seen declines. Without a workable plan for economic development in these parts of the county we can’t expect to see a lot of young families moving in, bringing with them the kind of growth we need. 

Some have claimed that expanded Internet service will do the trick, while others say sewer infrastructure is the answer. Both are good ideas, but determining which to prioritize is a thornier exercise. One is less expensive, but cost ought not be the sole factor. We need to look at solutions that yield the greatest return on investment. 

Absent any meaningful economic growth, the county is left with two choices. We can either reduce spending or increase taxes. One part of the budget ripe for cutting is salaries and benefits for county employees, which account for 55% of all general fund expenditures for 2018. The fact 55% of the general fund is spent determining how to spend the remaining 45% is symptomatic of bloated government. The biggest single general fund line item in the 2018 budget is law enforcement. The expenditure of $6.11 million for the sheriff’s office is six-times that of the next largest expenditure, but nobody wants to see cuts in public safety.

As for finding additional revenues, anything other than raising the property or sales tax is tinkering around the edges. Of the $18.5 million in revenue projected for the 2018 budget, nearly $11 million comes in the form of taxes on homes and retail sales. People will tolerate a certain level of higher taxation, whether by higher tax rates or inflated assessments on real estate, but eventually, people will begin to vote with their feet and leave. 

Many Jefferson County residents currently do just that, in a manner of speaking, by spending their retail dollars in Clallam or Kitsap Counties. Both counties encourage the sort of retail development that, unlike Jefferson County, reflects the demands of 21st century consumers. Wooden toys, handmade soap and scented candles are fine as far as they go. But when a family on a budget needs to get household products in bulk, buy back-to-school clothes or do their Christmas shopping, many are driving out of the county and taking sales tax revenue with them. 

Every family in Jefferson County knows they have to live within their means. When they don’t have enough money, they either work harder and earn more or they spend less. They have to balance their household budget. Taxpayers should expect the same from local government without surrendering more of their hard-earned money. 

Failure to attract new business to Jefferson County is not an option. The status quo is unsustainable. Our commissioners know this and they need to fix the problem.