Grant County to use unappropriated funds to patch budget hole

Published 4:56 pm Friday, May 9, 2025

County still seeking cuts, eyeing next year’s budget

CANYON CITY — The Grant County Budget Committee decided May 8 to use as much of the county’s unappropriated funds as necessary to balance the budget — a decision committee member Kathy Smith described as “kicking the can down the road.”

Grant County Treasurer Julie Ellison said the amount ultimately drawn from unappropriated funds would likely be less than the original $1.9 million estimate, due to subsequent budget adjustments. The committee also approved transferring $800,000 from unappropriated funds to the courthouse reserve to address the building’s failing boiler system.

Smith criticized the full reliance on unappropriated funds to close the budget gap this cycle, using a literal can and a sign reading “Here is the can to kick down the road” to visually express her concerns.

Committee member Amy Krueger echoed Smith’s sentiment. “If we sit here and allow $1.9 million to balance the budget — what happens next year?” she asked.
The committee had originally planned to use the county’s $4.5? million in unappropriated funds as a long-term financial cushion. Facing another major budget gap next year could exhaust those reserves within two budget cycles.

Library discussion draws attention

Despite the budget action, talks of further cuts continued — including potential impacts to the library.

Library Director Chris Ostberg said the facility “is never going to be a moneymaker,” but added she has worked to ensure the library has minimal financial impact on the county. Ostberg noted the library receives roughly $7,000 annually from the county and $10,000 from the state to purchase books. Additional funding comes from the Library Foundation and the state library system.

Budget Committee member Charlene Morris said the library was not in a position to avoid the financial strain. “The library couldn’t have done anything differently to avoid this moment,” she said.

Morris suggested closing the library unless the Library Foundation assumes its costs, or unless a tax district is established to fund it.

In comments to the Eagle, Ostberg pushed back against the idea of the Library Foundation using its  funds for the operation of the library. “Those funds were raised under the assumption that they  would build a new building,”  she said. 

Under state law, two public hearings held at least 90 days apart are required before a public library can be closed or defunded. No final decisions were made regarding the library.

More budget revisions

The committee identified $215,900 in additional savings by cutting $5,000 from office supplies, eliminating county funding for Hope 4 Paws and animal damage compensation, and removing most nondepartmental group insurance and retirement costs.

Members voted unanimously to freeze county wages for  elected officials during the 2025–26 fiscal year. A prior suggestion to sell the L Building and relocate employees to the courthouse was abandoned after discussions with affected staff.

The committee also chose not to fund Blue Mountain Community College’s local programs. Grant County Judge Jim Hamsher suggested that veteran services could seek support from the Oregon Department of Veterans’ Affairs to replace the county’s contribution.

Smith criticized current wage levels, stating that the county can no longer afford to pay employees at their current rates. She noted that the judge, commissioners, sheriff and watermaster each earn more than $40 per hour.

The committee also recommended that the county court review its PERS benefits and insurance structures. Caps on sick leave and vacation time are likely, as the county’s liabilities for those benefits now exceed $300,000.

To monitor progress and adjust as needed, the county court and the three appointed public members of the six-member committee will hold quarterly meetings during the 2025–26 fiscal year.

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