Washoe County Board of County Commissioners Budget Workshop

The Washoe County Board of County Commissioners held a budget workshop on January 27, 2026, from 9:00 a.m. to 12:55 p.m. The workshop was the first in a new quarterly series recommended by an external assessment, designed to provide an educational deep dive into key topics. The session included national and regional economic outlooks, a review of audited financials, an updated five-year forecast, an overview of mandated and non-mandated services, and a discussion of next steps in the budget process.

Public Comments & Testimony

• Pam Darr expressed support for rethinking property taxes and suggested corporate sponsorship for homeless services to relieve taxpayer burden. She stated that homelessness is heartbreaking and that corporations should help get people off the streets.
• Janet Butcher argued that Washoe County’s budget is two to three times larger than comparable counties and urged across-the-board expenditure reductions. She questioned whether new facilities (CARES campus, mental health facility) will serve people from other counties or states.
• Trista Gomez requested public records regarding capital costs of the CARES campus, noting her first request was denied. She highlighted that many residents are struggling financially and questioned the cost burden of the CARES campus on taxpayers.
• Terry Brooks spoke about age discrimination in employment and housing affordability for seniors, emphasizing that elderly people need more support and face higher costs relative to fixed incomes.

Discussion Items

• National Economic Overview (Matt Bowden, BCM Fixed Income): Bowden presented a balanced outlook with significant uncertainty. He noted the Federal Reserve’s dual mandate is increasingly difficult, with a wide dispersion of rate expectations among FOMC members. He highlighted jobless growth potential, a K-shaped economy benefiting asset owners, rising consumer delinquencies (especially credit cards and auto loans), and sticky services inflation. Housing affordability is a major concern, with income needed to buy a home far exceeding median income. He recommended a defensive, high-quality investment strategy. The county’s investment portfolio returned 6% for the calendar year, and future returns are expected around 4%.
• Regional Economic Overview (Dr. Eugenie Lairmore): Lairmore emphasized that Washoe County’s double-digit growth era is over; now growth is “increasing at a decreasing rate.” Population growth is slowing (from ~5,000/year to ~3,500/year), and net migration is declining due to affordability and housing supply constraints. In-migrants are predominantly younger (18-39), changing service demands. Wage growth is slightly outpacing inflation. Housing supply is shifting toward multifamily, but single-family sales remain constrained by high interest rates. Existing home prices increased only 2% per year in 2022-2025, while wages grew 5%, helping affordability. Multifamily vacancy rates rose in 2025 as supply absorbed, but rents remain high for median earners.
• County Financial Review (Kathy Hill, Comptroller; Lori Cook, Budget Director): Hill reported a clean audit for FY25 and a net addition of $2.5 million to fund balance. Cook presented a structural deficit: average revenue growth of 7.6% over three years, while expenditures grew 10.5%. Personnel costs (salaries, PERS, group insurance) are increasing faster than revenues. The five-year forecast shows declining fund balance, approaching the board’s policy floor and legal minimum of 4%. Key risks include PERS rate changes, group insurance, legislative impacts, and insufficient capital improvement transfers (currently $13M vs. $18-20M need). The county is not alone: a national survey found 60% of local governments cite modernizing inefficient systems as a top investment priority.
• Mandated Services Overview (Dave Solero, Assistant County Manager): Solero explained that of 823 chapters of Nevada Revised Statutes, 116 mandate county services. Service levels are set by law, industry standards, or board policy. He introduced the infrastructure scorecard, which tracks conditions of roads, parks, stormwater, etc. Roads scored an “F” due to deferred maintenance and funding shortfalls. A regional study found $600 million in deferred maintenance and $800 million in 10-year funding gaps. He discussed the challenge of aligning citizen expectations with available resources.
• Budget Process and Next Steps (Abby Jacobi, Deputy County Manager): Jacobi tied the strategic plan to budget proposals. The board’s financial policies (fund balance, reserves, infrastructure scorecard) provide a foundation. She stated that fund balance at 30-31% is above policy, but much of the excess will be needed for contractual increases and one-time items. No new personnel will be requested for the second consecutive year. However, departments may reallocate positions on a cost-neutral basis. Manager Thomas affirmed there is no plan to reduce existing personnel or salaries.

Key Outcomes

• No new personnel: The county manager directed that no requests for additional staff be included in the tentative budget for FY27.
• Net-zero position shifts: Departments may reclassify vacant positions as long as total position count and cost remain neutral.
• Upcoming deadlines: Budget Congress (internal) on February 3; Manager’s Proposed Budget (tentative) on April 14; Public Hearing on May 19; Final budget filed by June 1.
• Commissioner requests: Commissioner Hill requested a report on costs of ICE detainees and reimbursement; and creation of a media directory to ensure equitable outreach in paid media.
• Workshop format success: Chair Andriola praised the workshop and expressed interest in continuing the quarterly deep-dive format.