Treasurer warns Washington County general fund balance fell and cash is tight ahead of 2026 budget

Treasurer Al told the Board of Supervisors that Washington County’s unassigned/unappropriated general fund balance fell from prior levels and that cash on hand is low, leaving the county less margin for the coming budget cycle.

He said some of the decline reflected deliberate choices — including using $3 million of 2023 surplus in 2024 — and an accounting deferral related to unpaid taxes that reduced reported revenue. He warned supervisors that the combination of those factors left the county with materially less cushion and that the budget officer would need to find roughly $2.8 million before starting the 2026 budget in order to avoid a repeat of the prior year’s balancing actions.

Why it matters: Fund balance and cash are the county’s primary short‑term financial resilience measures. The treasurer noted the county typically runs about $3 million cash flow per month and urged supervisors to maintain two‑to‑three months’ operating cash to avoid intra‑year borrowing or painful mid‑year adjustments.

He also said the county will run an online tax auction in September (scheduled in his remarks) that should remove some long‑delinquent receivables from the books and could improve fund balance once resolved, but cautioned that auction proceeds are uncertain and not a sustainable revenue source for recurring expenses.

No formal board action was taken; the treasurer asked supervisors to engage actively in the 2026 budget process and to expect staff to present options to close the gap, including expense reductions, revenue adjustments, or one‑time transfers.