Other counties are preparing for layoffs, but here in Pierce County, we’re not cutting any jobs. Why is that? (Or as Assessor-Treasurer Mike Lonergan memorably recently asked, “Are we just smarter?”)
Our county operates on a two-year budget that covers 2024 and 2025. Similar to how a football coach might adjust the game plan at halftime, we review our budget midway through the biennium to address any changes in revenues and expenditures. The goal is to responsibly manage the budget so our residents and employees can trust that essential government services will continue, especially when they are needed most.
This week, I submitted my plan to the County Council to adjust our budget. These changes account for critical needs and reflect shifts in our revenue and expenses that we couldn’t foresee when the budget was originally passed.
Overall, our 2024-25 budget is in good shape. On the revenue side, our biggest concern is the slowing of economic growth, which could reduce tax revenues. About 37% of our General Fund (which supports services like the courts, Sheriff, Prosecutor, Finance, Facilities, Human Resources, IT, the Council, and my office) comes from property taxes, but another 30% comes from sales tax. Unlike property tax, sales tax is more sensitive to economic fluctuations. While our economy is still growing, I’m concerned that future growth might not meet our projections.
On the expenditure side, there are two unexpected expenses in particular that come to mind.
First, due to a change in the statute of limitations, more than 50 tort claims have been filed this year related to Remann Hall, our youth detention facility. Statewide, over 500 claims have been filed regarding youth rehabilitation facilities. Many of these claims involve allegations of mistreatment from more than 30 years ago. Working with Prosecutor Mary Robnett, we’ve set aside $1 million to begin investigating and evaluating these claims.
Second, in May, our Bridge Team determined that the Spiketon Bridge on the Foothills Trail between South Prairie and Buckley was no longer safe for public use. It was frustrating because this wooden truss bridge should have lasted over 30 years, but it started to fail after only 17. I declared an emergency, and we quickly demolished the bridge. With nearly 500,000 visitors annually, the Foothills Trail is one of our most popular outdoor destinations—second only to Chambers Creek Regional Park. Reopening the trail is a top priority, so I proposed reallocating funds from less frequently used parks to replace this critical bridge.
Beyond these unexpected issues, I also propose investing in a few high-priority areas. My plan authorizes additional patrol deputies, supports further modernization work in the Clerk’s Office, and advances long-term solutions for homelessness, such as the Aviva Crossing project near Tacoma Community College.
In general, we continue to manage our budget responsibly, with a strong focus on using one-time funding for strategic initiatives and being very cautious about committing to ongoing expenses. We also make our budget decisions with the future in mind. To ensure we will be there for our community tomorrow, we must make smart spending choices today. I am confident that with a bit of “belt-tightening” and continued fiscal discipline—the same approach that earned us Moody’s Aaa bond rating in 2023—we can manage through whatever comes at us in the future.
So, to answer Mike’s question, “Are we just smarter?”:
Yes, our Finance team, led by Gary Robinson and Julie Demuth, is incredibly smart and backed by excellent budgeting and forecasting tools. But it’s also our disciplined approach and long-term focus on spending and services that makes the difference. Together, these principles are serving both our community and our dedicated staff well!
Thanks for reading,
Bruce