Whatcom County orders temporary hiring freeze in the face of rising budget deficit
Whatcom County Executive Satpal Sidhu issued a hiring freeze Monday, in the face of budget projections that are showing a $15 million deficit this year.
Hiring and pay increased during the coronavirus pandemic and state and federal funds helped pay for that, Sidhu said in an email to county employees, which was provided to The Bellingham Herald.
But those outside funds are ending and revenues are lagging, he said.
“Today, however, with no new revenue streams anticipated and our traditional revenues sources flat, we see budget challenges ahead,” Sidhu said. “The purpose of this action is to ensure we have the resources to support our current workforce and to give county leadership an opportunity to think strategically about our financial decisions as we approach the budget process for the next (two-year budget cycle).”
Sidhu’s hiring freeze comes after the Whatcom County Council heard sobering budget projections during a special meeting on June 11, which was part of preparations for the 2025-2026 spending plan.
Finance Manger Brad Bennett warned that austerity could be around the corner.
“Finance is thinking that this is gong to be a real squeaker of a budget year. In fact, I think we’re going to have to prioritize to make ends meet,” Bennett said.
Deputy County Executive Kayla Schott-Bressler told council members on June 11 that much of the budget pressure was from higher wages and increased hiring in law enforcement and the court system.
Criminal justice, planning, parks and administration are the departments will be affected the most, Schott-Bressler said.
“Our office feels very strongly that we need to not undergo further expansion,” she said.
Whatcom County’s social services agencies have separate revenue sources to fund efforts to combat the fentanyl crisis, address homelessness, provide child and family services and continue efforts to build a new jail.
Whatcom County is one of the area’s largest employers, with about 1,000 full-time positions in the $111 million 2023-2024 budget.