Breaking the budget

COEUR d'ALENE - Kootenai County commissioners unanimously approved the publication of a tentative 2022 budget — but whether that document survives a final vote is still up for debate.

Friday morning, two commissioners, Leslie Duncan and Bill Brooks, expressed several issues with the current budget. Those concerns, both officials suggested, may warrant the retraction of their support.

Since March, county staff and department heads have whittled down the expense requests to develop the tentative $108.9 million budget. After months of deliberations, commissioners should finalize the document following a public hearing on Aug. 25 at 6 p.m.

Due to the presence of what Duncan described Friday as her “pet peeves,” the commissioner said she would not support the current document.

Duncan has opposed the past two county budgets, meaning a dissenting vote on Aug. 25 would be her third in a row.

“Once again, I won’t be approving this budget,” Duncan said. “It is a good job done by all with what we have to work with, but I can’t approve the balances in the budget.”

Two of Duncan’s “pet peeves” are:

• The Coeur d’Alene Economic Development Council

• Collecting the 3% increase in property tax revenue

Kootenai County has allocated $45,000 toward the Coeur d’Alene Economic Development Council for the past three years to promote business expansion and economic strength.

“Why are taxpayers paying a private group to bring business here when there are housing and workforce shortages?” Duncan said in an emailed response to The Press.

Commissioner Chris Fillios, who expressed he has no reservations about the budget as it stands, said supporting CDAEDC benefits the county and taxpayers.

“We’re doing the right thing by the taxpayers as far as (CDAEDC) is concerned,” Fillios said. “They continue to bring in jobs, and that is going to prove crucial because the cost of living is very high.”

Considering the toll of COVID-19 closures and economic strife on taxpayers, the commissioners agreed to forgo taking the 3% property tax increase permitted by Idaho Code in the 2021 budget year.

However, Fillios pointed out that boards have collected all — if not part — of the 3% for decades. Still, Duncan felt that after receiving an unexpected increase in state sales and liquor tax revenue, the county could have done without taking the full 3%.

“I didn’t want to take the 3%,” Duncan said. “I prefer to have the starting number at a zero percent tax increase plus new growth, then add a tax increase only if the county’s needs cannot be covered by new growth.”

Brooks, who did not explain his reservations during the meeting, said in a follow-up that going without the 3% would be “highly irresponsible” given the county’s growth.

“We have to pay for services the people rely on like the sheriff’s office. Without those services, we’re all at risk,” Brooks said. “Taxpayers have to trust that we’ll spend the 3% for something worthwhile — the basic services people in the county need.”

Fillios concurred with his fellow commissioner and said not taking the 3% would limit the county’s ability to operate efficiently.

“With recent limitations set by the Legislature to raise revenues and Kootenai County growing at arguably one of the fastest rates in the nation, there is no way to meet commitments to our constituents without taking the increase,” he said.

Part of Brooks’ hesitancy to the tentative budget is his perceived “favoritism” for specific line items. Specifically, the commissioner didn’t support reserving dollars to fund potential facility expansion projects and the use of the American Rescue Plan Act grant money.

Because the board approved the tentative budget Friday, commissioners can only cut line item amounts ahead of the Aug. 25 public hearing. In the next two weeks, Brooks said he would be “looking for things to delete.”

Duncan said both Fillios and Brooks have “made it clear” they would not support her proposed modifications.

“There are a few more issues I will address at the budget hearing that I would like removed,” Duncan said. “In good conscience, I cannot approve the budget as it stands.”

Public hearings for county budgets can continue for multiple days under Idaho Code 31-1605 but must be concluded by the second Monday in September. The board must approve all tax levies and deliver them to the state tax commission no later than the third Monday in September (I.C. 63-808).

“By Aug. 25, I think everything will come together because I think we realize it has to,” Fillios said. “I understand Leslie’s reservations. I don’t understand Bill’s because he didn’t have anything to say. But we are three independent thinkers, and that is OK.”