COEUR d’ALENE — Two weeks before Kootenai County is expected to present a preliminary balanced budget for fiscal year 2027, commissioners continue efforts to avoid a deficit.

A public hearing on the budget is scheduled for Aug. 26. Commissioners are expected to adopt a final budget Aug. 27. 

As of Wednesday, total proposed expenditures total about $146.9 million. Last year, commissioners adopted a $144 million budget for fiscal year 2026. 

If commissioners take 3% more property taxes, the maximum allowable amount, they’ll face a $1.7 million budget deficit, a figure the board trimmed down from a possible $5.6 million deficit at the beginning of the budget cycle. With no tax increase, the board would need to cut another $3 million from the budget to balance it. 

During Wednesday’s budget hearing, commissioners and county staff discussed ways to balance the budget with a 3% tax increase. 

Finance director Brandi Falcon told commissioners they could choose to cut $340,000 from the budget for medical claims. 

The funds represent 10% of one month’s worth of claims, Falcon said, and were set aside to rebuild reserves in the county’s health insurance plan, which she said has been drained in recent years by “catastrophic” medical claims. 

“We can always cut it,” Falcon said, referring to the $340,000 cushion. “Like I’ve explained before, budgeting for claims is very tricky to begin with.” 

Commissioner Bruce Mattare said the county should prioritize replenishing the reserves in future budget cycles. 

The county’s cost for employee benefits is expected to increase from about $17,000 per employee per year to about $22,000 per employee per year. 

The main drivers of this increase are increases in the county’s stop-loss insurance and rising medical claim costs. The county is facing several multimillion-dollar medical claims at present, Falcon said. 

To mitigate these rising costs, the board is weighing several options for changes to monthly employee contributions, including 1% and 3% increases. 

The proposed budget includes $1 million for vehicles for the Kootenai County Sheriff’s Office. If the board cuts the medical claims funds and then uses $500,000 from the fund balance and $ 500,000 in interest funds to pay for the vehicles, Falcon said a balanced budget will be in sight. 

“We’re pretty close,” she said. 

Budget deliberations will continue.