### Meeting Overview The Whatcom County Finance and Administrative Services Committee met on June 10, 2025, to discuss a major budget supplemental request and approve multiple contracts. The meeting's main focus was a controversial $18.2 million budget amendment, with particular debate over $1.5 million for behavioral health contracts with local school districts that weren't included in the original 2025 budget. ### Key Terms and Concepts **Budget Supplemental:** A mid-year amendment to the county's adopted budget to authorize additional spending or revenue that wasn't anticipated when the budget was originally approved. **Behavioral Health Fund:** A county fund that pays for mental health and substance abuse services, including contracts with school districts to provide counseling and prevention services to students. **Consent Agenda:** A group of routine agenda items that are voted on together without individual discussion unless a council member specifically requests to pull an item for separate consideration. **Fund Balance:** The amount of money remaining in a fund after all revenues and expenditures are accounted for—essentially the fund's savings account. **Consolidated Housing Grant:** A major state grant that provides funding for homeless services and housing programs in Whatcom County, allocated by the Washington State Department of Commerce. **Mental Health Millage:** A voter-approved property tax that generates revenue specifically for mental health services, with funds going to the Mental Health and Developmental Disabilities Fund. **Economic Development Investment (EDI) Fund:** Also called the Public Utilities Improvement Fund, this fund supports economic development projects including the agricultural research station. **Continuing Appropriations:** Budget authority that automatically carries forward from one year to the next for ongoing contracts and programs. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Todd Donovan | Committee Chair | | Tyler Byrd | Council Member | | Barry Buchanan | Council Member | | Randy Rydell | County Finance Director | | Kayla Schott-Bresler | Deputy Executive | | Aly Pennucci | Deputy Executive | | Joe Fuller | Health Department Program Specialist | | Ann Beck | Health and Community Services Manager | | Kimberly Thulin | Attorney for Council | | Gary Stoyka | Natural Resources Manager | | Melissa Keeley | Human Resources Director | ### Background Context This meeting highlighted a recurring challenge in Whatcom County's budgeting: managing the Behavioral Health Fund, which has been experiencing structural deficits as expenses grow faster than revenues. The fund supports critical services including school-based mental health programs, but county executives had to reject some spending requests during the 2025 budget process due to concerns about the fund's stability. The school contracts at the center of debate were three-year commitments made in 2023 when the fund had significant reserves and youth mental health needs were acute following the COVID pandemic. However, these multi-year obligations created budget complications because state law limits how far ahead local governments can budget for contractual commitments. The housing grant discussion reflects broader challenges in homeless services, with state funding declining slightly while costs continue to rise, meaning fewer people can be served with available resources. ### What Happened — The Short Version The committee approved 10 consent agenda items totaling over $6 million in various contracts for developmental disabilities services, environmental cleanup, domestic violence shelters, and housing support. The major debate centered on an $18.2 million budget supplemental request. While the gross amount seems large, the net impact is only $7 million because $10.5 million represents federal housing grant money flowing through the county budget. The contentious portion was $1.5 million for behavioral health school contracts that weren't included in the original budget. Council members, particularly Tyler Byrd, questioned why the county was adding unplanned expenses to a fund already facing structural problems. Staff explained they're using consultant recommendations and fund reserves to cover immediate needs while developing a long-term solution, including potentially moving some costs to the Mental Health Millage Fund, which has healthier reserves. The committee voted to recommend two separate versions of the supplemental ordinance for full council consideration—one including the behavioral health funding and one without it. ### What to Watch Next - June 24: Executive staff will present a comprehensive analysis of the Behavioral Health Fund's status and long-term sustainability plan - July 8: Working session on the county's overall homeless and housing funding strategy - July 10: Behavioral Health Advisory Committee will prioritize programs, potentially informing future funding decisions - August 7: Deadline for council approval if the county wants to renew annual substance use prevention contracts with schools starting September 1 ---