Kootenai County commissioners publish proposed $147 million budget, 3% tax hike

Kootenai County commissioners agreed to publish a proposed $147 million budget for fiscal year 2027, a plan that would raise property taxes by 3% and add about $3 million in spending over the previous year. For homeowners, the change will land most directly on the county tax line, even as the money is being used to cover everything from staffing and public safety to courts, roads and administration.

The county’s public hearing on the FY2027 budget is scheduled for 6 p.m. Aug. 26 at the Kootenai County Public Administration Building, 451 N. Government Way, in Coeur d’Alene. That hearing will be the clearest public chance for taxpayers, service providers and residents to challenge or support the spending plan before it is finalized.

The size of the budget underscores the pressure commissioners have been describing in recent deliberations. Even with a 3% property-tax levy increase, county leaders had been told they would still need cuts to avoid a deficit. A preliminary balanced budget was set to be presented July 30 after meetings in June and July, including budget sessions on June 5, July 27 and July 28.

County records and meeting materials show the proposal came together through a series of formal deliberations involving Commissioner Bruce Mattare, Commissioner Leslie Duncan and Commissioner Marc Eberlein, along with Finance Director Brandi Falcon and other county officials. A July 27 special-meeting agenda listed FY27 Budget Deliberations as an action item, signaling that the board had moved from discussion to action on the spending plan.

The biggest new costs behind the proposal are not hidden in a single department. A county Facebook post said rising health insurance costs, employee step increases and jail overtime added nearly $5.9 million in new expenses to the FY27 budget. That helps explain why a relatively modest 3% tax increase is being paired with an overall budget that still grows by roughly $3 million.

Kootenai County’s three-member Board of Commissioners serves as the county’s taxing authority and chief administrator of public funds, so the budget vote is also a test of how the board explains spending pressure to residents who are already dealing with higher housing, insurance and utility bills. The Aug. 26 hearing will show whether voters see the proposed budget as a necessary adjustment or a question of value for money.