La Plata County’s draft budget for 2026 anticipates a slowing economy, rising inflation and structural revenue deficits that will require significant spending cuts.
The county has proposed a $119 million budget in expenditures, a 12% decrease from the $136 million approved this year.
“Given the growing pressures on countywide revenue streams, the predominant priority guiding this budget is to ensure fiscal organizational sustainability,” wrote Interim County Manager Kevin Hall and Finance Director Adam Rogers in the budget message.
Next year’s total revenue is projected at $102 million, up $865,000 from this year – less than a 1% increase – and does not alleviate the county’s mounting financial challenges amid rising inflation, officials said.
The gap between expenditures and revenue is covered by the fund balance – simply put, it is savings put aside for one-time projects, long-term improvements and emergencies.
Property tax revenue is projected to increase 9%, bringing in $19 million next year.
Sales tax revenue is expected to remain flat at $27 million.
Both severance tax revenue and the Highway Users Tax Fund are expected to decrease.
Although commissioners recently approved a sales tax ballot question asking voters to approve a 1% increase – estimated to generate $18 million annually – the budget assumes the measure will not pass. Hall and Rogers said the draft was prepared for the worst-case scenario.
With no solution to the county’s structural revenue challenges – and as the gap between its needs and available resources continues to widen – budget challenges are likely to persist past 2026, Rodgers told commissioners.
The draft was developed with that outlook in mind. During his presentation Tuesday, Rogers urged commissioners to consider the long-term effects of their decisions and to make deep enough cuts to prepare for continued revenue shortfalls.
“I’d like to get to the point where we make enough cuts so that ... when I’m here in a year, talking about the ’27 budget, we’re not talking about cuts, we’re talking about keeping things as they are,” Rogers said. “I see the wear and tear on directors, so that would be my personal challenge to you.”
To reach the proposed level of reductions, the draft budget would result in staff cuts, reduced capital improvement projects, deferred maintenance on public infrastructure, and other reductions or eliminations in discretionary programs, services, employee benefits and training.
Regardless of any changes to the proposal, residents are likely to see reduced services in areas such as public safety – including the Sheriff’s Office, emergency management and road maintenance – as well as in human services, public health and infrastructure investments.
All departments are slated for some level of cuts.
Public works – which oversees roads and bridges, the landfill, weed management and other infrastructure services – faces the largest proposed reduction, with spending dropping 29%.
General government and health and welfare would see reductions of 15% and 16%, respectively.
Public safety and recreation and culture would see the smallest reductions, at 3% and 1%.
The cuts would also shift the proportion of funding each sector receives, with public safety overtaking general government as the largest share of the county budget.
County commissioners and staff will review the 116-page budget in depth over the coming weeks and will likely adjust the numbers before final approval.
During the initial presentation, both Hall and Rodgers emphasized that the draft numbers represent a single point in time. Many variables are subject to change before the Dec. 15 adoption deadline required by state law.
The Board of County Commissioners will hear public comment on the proposed budget at 5 p.m. Oct. 7 at the County Administration Building.
jbowman@durangoherald.com
