Thursday, October 1, 2026
The Treatment Sales Tax (TST) budget came under scrutiny this week, as Thurston County steers toward a leaner financial course for 2026-27 amid stagnant revenue and rising program costs.
The Thurston County Board of County Commissioners gave a directive to staff and the TST Advisory Committee to craft recommendations within expenditure ceilings of $9.3 million in 2026 and $9.4 million in 2027.
The decision, made during the board’s agenda setting meeting on Tuesday, Sept. 16., followed a briefing that showed revenue growth flattening since 2023 and spending outpacing receipts beginning in the same year.
Staff said a portion of the fund balance will be used to cushion a step-down in spending over two years rather than cut programs abruptly to match the lower revenue line.
Thurston County Public Health and Social Services (PHSS) Department Director Jennifer Freiheit, TST Program Manager Chelyn Sowers and Commissioners Office Finance Manager Summer Miller delivered the update to the board.
The TST program is authorized under Revised Code of Washington (RCW) 82.14.460 and Thurston County Code Chapter 5.49, with an advisory committee appointed by the board.
Sowers said the tax is a 0.1% sales tax that underwrites mental health, substance use treatment and therapeutic courts. The program is guided by an advisory panel that issues nonbinding recommendations.
The panel uses strategic planning, program performance revie, and budget request analysis to form recommendations.
The discussion placed the Behavioral Health Fund on a tighter trajectory.
County Manager Leonard Hernandez said the flattening mirrors wider sales tax trends and stressed commissioners were being warned early enough to act.
Board Vice Chair Wayne Fournier sought clarification if past spending relied on different assumptions.
Miller said prior to 2023, annual expenditures trailed revenues by about $1 million, with projections since then tracking close to actual receipts.
TST supports outpatient mental health and substance use disorder treatment, case management or care coordination, urinalysis, crisis response and administrative support to therapeutic courts.
About half of funded programs braid county money with state, federal or local dollars to extend reach.
PHSS monitors spending and program performance data quarterly, the advisory committee reviews result to inform recommendations, and the board finalizes both program budgets and the pool for one-time community grants through a request for proposals process.
To date, 38 programs receive TST support across nine county offices, the Thurston-Mason Behavioral Health Administrative Services Organization (BHASO) and community grant recipients.
Board Chair Tye Menser asked whether the tax is collected only in unincorporated areas or countywide, including cities. Staff said they would return with clarification along with the program and position details requested by commissioners.
Actual TST revenue, as reported:
Fund balance and expenditures, as reported:
Sowers then addressed budget pressure.
“If revenue growth remains flat as projected, the TST fund balance cannot sustain projected spending for 2026 through 2027,” Sowers revealed.
She proposed decreasing expenditures by $2 million in both 2026 and 2027, keeping spending closer to projected receipts while using some fund balance “to give programs and partners a softer transition compared to a $3 million decrease.”
Hernandez cited volatile post-pandemic swings, noting sales tax revenue jumped 15%, then 7%, then just 1% as the economy reopened.
He said the plan was to draw about $2.8 million from the fund balance gradually over the next two years to soften the step-down in spending, while retaining flexibility to adjust if collections improve in 2026 or 2027.
Allocation discrepancies
The revised 2024 TST budget totaled $11.8 million, with $9.36 million spent, or 79%. The largest allocations went to the BHASO ($3.85 million revised, $3.8 million spent) and PHSS ($2.14 million revised, $1.1 million spent).
The District Court, Superior Court, Sheriff-Corrections, Pretrial Services, Public Defense, Prosecuting Attorney’s Office, Juvenile Court and other programs accounted for the balance.
Sowers noted discrepancies, including $969,668 shown for community grants in the budget system versus $316,775 actually approved for 2024–25, of which $272,039 was spent in 2024.
A $50,000 line for the commissioners PCAP program was also later deemed unnecessary.
Menser said keeping spending closer to actual outlays offered a clearer path to balance than cutting active programs.
Fournier urged closer review of discretionary grants compared to mandated obligations, such as District Court and Superior Court.
Commissioner Carolina Mejia requested a drill-down on positions funded within PHSS, District Court and other categories. She also asked if the $9.3 million and $9.4 million targets could be sustained into later years or require reassessment.
Hernandez said the fund balance stood at $2.86 million and that underspending often occurs as positions take time to fill. He said $2 million will be drawn in 2026 and 2027, leaving about $887,000 at the end of 2027.
Mejia also inquired on the jump from $9.3 million in actual 2024 spending to the $11.14 million projected for 2025. Staff said they would provide detailed numbers, and Sowers said further research was needed.
The board voted to notify the advisory committee of the expenditure targets, to prepare a position-level and grant breakdown for 2024–25, and to clarify whether the tax is collected countywide or only in unincorporated areas.
Hernandez said staff would also review whether opioid abatement funds could support programs or positions at risk.
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Honestyandrealityguy
Highest in pretty much the whole country --- property taxes, business taxes, gas taxes, and more. At what point in time do they start exercizing common sense? Hmmmm
Thursday, September 18, 2025 Report this
Claire
Thurston County, one of the most poorly run counties in WA State. Keep electing Democrats and youll get more of this.
Thursday, September 18, 2025 Report this
36098501
Government budgeting has a way of twisting language until it no longer matches reality. Nowhere is this clearer than in the way “cuts” are presented to taxpayers. Spoiler: most of the time, a government cut isn’t really a cut at all—it’s a slower pace of overspending.
Consider what happened to the TST budgets between 2022 and 2027.
In 2023, spending jumped 23% even though tax revenue growth was flat. That decision created a $2 million deficit by 2025. Instead of realigning priorities to stabilize finances, the same mistake was repeated again in 2025 by approving another 19% budget increase without any expectation of new revenue.
By 2027, this budgeting strategy creates $7 million in cumulative deficit—one that completely drains reserves. Here is the critical point: this wasn’t an unforeseen crisis or a surprise downturn. This was a deliberate choice, made with financial data in hand.
The “cut” in 2026 doesn’t reduce spending below actual revenue. It only trims the previous year’s spending growth. The budget in 2027 will still exceed available tax revenue by roughly $1 million, which means the deficit continues.
The end result is self-inflicted debt by knowingly running deficits. By choosing to overspend reserves now, the county sets itself up for tough choices later: either raise taxes, scramble for alternative revenue sources, or put good programs at risk.
This budgeting approach leans on future taxpayers to bail out today’s decisions. There is room for good programs like this, but it requires responsible oversight, strong management and a firm handle on finances.
Government Budgeting 101: Spend more than you have, call reductions in excess growth in spending “cuts,” and eventually declare a revenue crisis when the math no longer works.
Wages remain flat, but the tax burden in Washington continues to increase further adding to the affordability problem that impacts everyone – by design.
Friday, September 19, 2025 Report this