Cuts, layoffs expected in new Lane County budget

"Hard Decisions Ahead" is the header of Lane County's proposed 2024-25 budget, which is scheduled to get a vote from county commissioners on Tuesday.

In the document, County Administrator Steve Mokrohisky described "a chronically underfunded County public safety system and growing behavioral health and supportive housing needs" as key causes expected to lead to the county's first layoffs in a decade.

The biggest change to Lane County's budget in the new fiscal year comes from less federal money going to the county. With the county spending the one-time money it received from the American Rescue Plan, divisions that it expanded then are now contracting. The hardest-hit are Human Services (which includes the county's homeless response) and Public Health.

The loss of pandemic-relief funding is the biggest change for the new year, but county officials described the budget challenges as perpetual, thanks to a few key factors:

• A relativity low property tax rate. With the current jail and parks levies, Lane County, which is just one of the taxing entities that show up on property tax bills, collects taxes at approximately $1.946 per $1,000 of assessed value, the third-lowest rate of Oregon's 36 counties.

• Historic reliance on timber revenue. Lane County collects compensation from the federal government for logging that occurs in the county, but revenues have been shrinking since the 1990s.

• Underfunding from the state and federal government. In addition to the expiring American Rescue Plan, examples include Congress not renewing rural school district funding under the 2000 Secure Rural Schools Act this year, and the state mandating county-wide mobile crisis while only partially funding it.

• Costs rising faster than these revenues. For example, the county paid 6% more into its employee benefit fund this year because of increasing health insurance costs.

The proposed net budget is approximately $861 million, but resources are $86 million less than last year. Compared to the current budget, there are net 14.25 fewer full-time employees in the new budget. Those positions must be cut through a combination of closing vacant positions and layoffs. The largest staff decreases are coming to the departments of Health and Human Services (-5.2 FTE), the Sheriff's Office (-3.0 FTE) and Community Justice & Rehabilitation Services (-2.3 FTE).

Largest decreases by fund

American Rescue Plan Act Fund (-$53.4 million, -100%)

Lane County was distributing the federal pandemic relief money around the organization, and now some of that money must be filled from other sources and some will result in cuts. The ARPA money was going toward:

• $15.1 million to the Department of Public Safety (Sherriff's Office).

• $9.7 million to the District Attorney's office.

• $7.8 million to Health & Human Services.

• $7 million to Community Justice and Rehabilitation Services.

• $5.1 million to Assessment & Taxation.

• $4.8 million to County Administration.

• $1.4 million to Public Works.

General Road Fund (-$22.1 million, -14.7%)

This fund comes from a combination of state gas tax, highway user fees and National Forest timber revenue and is used for county road maintenance, preservation and construction. Lane County attributed the fund shrinking this year to Congress not renewing direct federal funding to rural schools under the 2000 Secure Rural Schools Act, meaning a greater share of remaining timber revenue instead went to those schools.

Despite the decrease, revenue in this fund is still projected as higher than the county's expected cost for the Road & Bridge Maintenance Division.

Intergovernmental Human Services Fund (-$13 million, -20.1%)

This fund goes toward "human services and homeless resources and coordinated policy," and is shrinking with the loss of pandemic-era federal funding.

General (-$5.9 million, -3.1%)

This is Lane County's most flexible fund and comes from sources including property taxes, timber revenue, state-shared revenue and investment earnings. The fund is similarly shrinking with a reduction in state and federal pandemic relief money. Lane County's biggest change in expense for the general fund is sending less money to reserves, but it also attributes 6.0 of the FTE reductions to the shrinking fund.

Largest increases by fund

Capital Improvement (+$8.1 million, +32.3%)

This fund comes from Lane County's property sales, rentals and parking revenue and pays for the county's major construction projects. The increased revenue is going to "capital planning."

Employee Benefit (+6.8 million, +6.0%)

This fund pays for benefits for the county's employees. It's paid into by the departments with those employees, and the increase reflects increasing health insurance costs.

Largest decreases by division

Human Services (-$13.5 million, -22.0%)

The Human Services Division, "is facing a significant reduction," Lane County's budget document says. Compared to this year, the division is shrinking by 9.5 full-time employees, although the county said the division won't have layoffs because of vacant positions and staff rearrangement.

Human Services runs the county's programs on utility/weatherization assistance, rent relief, housing, homeless and community services, veterans services, and workforce services. The reduction, "will result in fewer housing, homelessness, and community action programs … fewer households who are unhoused being assisted through housing focused street outreach, emergency shelter, re-housing and permanent supported housing," the budget states.

The budget anticipates a $4 million reduction in homeless services as well as reductions to rent and utility assistance, programs that were being largely funded by the American Rescue Plan and other pandemic assistance programs. The federal grant funding the county's Dovetail service navigation program is also expiring. Lane County plans to continue this program in-house.

Engineering & Construction Services (-$13.2 million, -25.8%)

Funding to the county's Engineering & Construction Division is shrinking compared to last year because of the shrinking General Road fund, although the division still projects it has enough money for the 14 road projects it has planned for the fiscal year.

Policy Team (-$3.5 million, -42.7%)

Lane County formed its Policy Team in 2022 to address "high priority local policy initiatives, as well as the influx of state and federal funding." One of the division's responsibilities was to administer the county's American Rescue Plan funds. With those going away, it is shifting to "focus on revenue generation," primarily by seeking grants.

Public Health (-$2.2 million, -8.6%)

As the division most directly responsible for pandemic response, Public Health is one of the divisions most impacted by the reduction of pandemic relief funds.

Lane County has gradually shrunk the Public Health Division over the 2023-24 fiscal year as it spent the American Rescue Plan money. The 2024-25 budget cuts 34.2 FTE from the 2023-24 one when it was adopted. From the current budget, this is a reduction of 8.75 FTE.

Lane County's budget document said most but not all of these reductions were related to pandemic response. Lane County will eliminate the Public Health Operations Supervisor and positions from Environmental Health, WIC and Emergency Preparedness.

"The number of community events supported by the team will be reduced and the capacity for supporting emergency responses will be limited," the budget said. "The most significant service impact is in Mobile Public Health which had depended on limited duration workforce funding from the CDC and will not continue, at least in its current configuration. Mobile Public Health has been instrumental in extending services to rural areas of the county, including WIC and flu vaccinations."

Largest increases by division

County Administration Operations (+$8.9 million, +32.3%)

The increase to this division reflects the "capital planning" increase paid for with the increase in Capital Improvement resources.

Behavioral Health Services (+$6.7 million, +15.2%)

Lane County's Behavioral Health Division has a combination of expansions and contractions in the coming fiscal year. On the expansion side, Behavioral Health is rolling out Lane County's new in-house mobile crisis service which the state mandated but only partially funded, and the county is projected to more than double the cost of its "contracted delivery system." At the same time, Behavioral Health is cutting funding to its outpatient clinics, and the division as a whole is budgeted for 6.25 fewer FTE in the new fiscal year.

Community Health Centers (+$6.0 million, +12.4%)

Lane County's Community Health Centers are paying for new staff and materials as the division staffs its mobile clinics opened in March and the upcoming clinics in west Eugene and Cottage Grove.

It also aims to add providers. In particular, the county said it aims to improve access to pediatric care and urgent care as it aims to deflect from the emergency room now that there are fewer of them in Lane County and takes over the Dovetail program from the Human Services division.

The division acknowledged these expansions are drawing from other areas. "The addition of 3 new locations in the upcoming 12 months is a challenge drawing many resources, including impacts to other Lane County teams such as Facilities and Technology Services," the budget said.

Alan Torres covers local government for the Register-Guard. He can be reached over email at atorres@registerguard.com or on X @alanfryetorres.

This article originally appeared on Register-Guard: Lane County budget includes cuts, layoffs