Dear King County employee,

I want to provide you with an update on King County’s budget. Overall, King County’s budget is healthy. However, one component – the General Fund – is facing a $150 million gap in 2026-2027 because of a state law that prevents property tax revenues from keeping up with inflation.

State law prohibits more than a 1% annual increase in the property tax. King County, like many other counties, has managed within the 1% revenue growth limit by finding efficiencies, making small reductions in services, and finding small new revenue sources. This was possible because inflation was low for about 15 years. The high inflation between 2021 and 2023, which averaged 6.78% per year, has driven up costs, and we can no longer avoid large budget cuts.

Some departments are more reliant on the General Fund than others. Much of the General Fund goes to services mandated by the State, such as courts, property assessments, public defense, and corrections. That leaves the remainder of the General Fund to face reductions, which can’t be spread out among the General Fund evenly.   

I want to emphasize that no decisions have been made yet. We are very early in the budget process and a lot can change as we move through it, including action by the State Legislature. 

In late January, most General Fund agencies received budget goals to meet. Each agency will find the best solution to balance the needs of the people we serve and create the smallest impact on our work and our colleagues. Departments will develop plans that meet their target goals and will submit budget proposals to the Office of Performance, Strategy and Budget (PSB) in late June.

Please understand that we are in the early stages of planning for budget reductions and there are several steps in the process before final decisions are made. There are no plans for immediate position reductions in any King County department. The first round of program reductions is anticipated to be part of the 2026-2027 budget. 

County leaders will work with PSB, the Department of Human Resources, and the Office of Labor Relations to follow policy and collective bargaining agreements which provide structure and resources established to support employees in the process.   

I know uncertainty can be stressful. We will continue to support you in your employee experience here at King County. I encourage everyone to work with their supervisors and the HR team to help address any questions you may have. 

Sincerely,

Dwight Dively
Director, Office of Performance, Strategy and Budget