La Plata County Faces $17 Million Budget Gap, Cuts Loom

UPDATE: La Plata County is bracing for a significant economic downturn, with officials revealing a draft budget for 2026 that anticipates a staggering $17 million gap between projected revenues and expenditures. The county’s proposed budget stands at $119 million, reflecting a 12% decrease from this year’s approved spending of $136 million.

In a critical budget message, Interim County Manager Kevin Hall and Finance Director Adam Rogers emphasized the urgent need for fiscal sustainability amid rising inflation and declining revenue streams. “Given the growing pressures on countywide revenue streams, the predominant priority guiding this budget is to ensure fiscal organizational sustainability,” they stated.

Authorities project total revenue for the next year at $102 million, which is only a slight increase of $865,000—less than 1%—compared to the current year. This meager rise does little to alleviate La Plata’s ongoing financial challenges. The county’s reliance on its fund balance—which comprises savings earmarked for one-time projects and emergencies—will become increasingly pronounced as the fiscal gap widens.

The budget outlines a 9% increase in property tax revenue, expected to generate $19 million. However, sales tax revenue is projected to remain stagnant at $27 million, with declines anticipated in severance tax revenue and the Highway Users Tax Fund. A proposed sales tax ballot initiative asking voters to approve a 1% increase—expected to provide $18 million annually—assumes defeat in the draft budget.

Rogers urged commissioners to brace for continued revenue shortfalls, stating, “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.” He highlighted the long-term implications of the budgetary decisions being made now.

To meet proposed spending cuts, the draft budget suggests significant reductions across various departments, including staff layoffs, deferred maintenance on public infrastructure, and cuts to discretionary programs. Public safety—covering the Sheriff’s Office, emergency management, and road maintenance—will likely experience reduced services.

Specifically, the Public Works Department, which manages essential services such as roads and bridges, is projected to endure the largest cuts at 29%, while General Government and Health & Welfare are anticipated to decrease by 15% and 16%, respectively. Public safety and recreation will face the smallest reductions, at 3% and 1%.

County commissioners will review the 116-page budget thoroughly over the coming weeks, with adjustments likely before the final approval deadline of December 15, 2023. During an upcoming public meeting on October 7 at 5 p.m., residents will have the opportunity to voice their concerns regarding the proposed budget cuts at the County Administration Building.

As La Plata County navigates these challenging financial waters, residents and officials alike are encouraged to engage in the budgetary process, as the decisions made now will shape the county’s services and resources for years to come.