It was important to give folks a general overview of the state of the Grand County budget. I am new to this process; this is my first year on the Budget Advisory Board, and I have now spent many months immersed in it.
While it has been a fascinating process, it has also been a frustrating one– sidestepping critical decision-making until the very last minute (December 16), when the County Commission finalized numbers in the waning hours of the budgeting process.
Overall, we balanced the budget by drawing $345,824 from reserves built by the county over the last decade. This draw was a shell game, as some items that would have increased the deficit were moved to the Capital Projects General Fund, which ultimately represents the same taxpayer dollars as the County General Fund.
In the 2026 budget, we will provide no COLA (cost-of-living) increases for our employees, implement a countywide hiring freeze for the entire year, and add only positions mandated by law or fully grant-funded. We also reduce contributions to outside entities by 25% across the board.
We also deviated from our usual processes (at least in my tenure) by failing to contribute funds to the Stormwater Mitigation and Capital Projects Funds.
Ultimately, budget shortfalls stem from two sources: revenue loss or insufficient revenue, and overspending of that revenue. I want to break these two items down as simply as possible.
Revenue loss or lack of revenue at the county level includes (1) a 2025 change in Transient Room Tax (TRT) legislation which resulted in a loss of approximately $500,000 and (in theory) a loss of sales and use tax revenue overall from 2025 projects.
However, as of the end of November, sales and tax revenue figures were on track with our original 2025 projections.
We have a revenue gap, but what about expenditures? Inevitably, expenses creep up, including salary and benefits, fuel, maintenance, and materials. This has all been trending upward (as I’m sure you all experience daily).
It has also been extremely alarming seeing the rate at which we have been spending outside the approved 2025 budget (which includes the approved capital project lists). Several items stand out to me, including approximately $600,000 for a new Children’s Justice Center building, $660,000 for a new runway to private hangars at the airport, $385,000 to supplement EMS operations, $63,000 for a study on timed-entry at Arches National Park, and $10,000 for a cloud-seeding project. These are just a few.
I am not providing a statement as to the value of each of these projects; it is more of a standard for spending. We have a list of capital improvement needs and a budget for a reason, and these expenditures put us at risk. We also had numerous departments exceed their 2025 budgets, despite our specific request for spending reductions.
So, to move beyond the woes to a path forward. I look forward to a new year and a refreshed commission. There are a few items that could help us for the future.
The Moab Travel Advisory Board is working to promote our community and hopes to see an increase in sales and use tax revenue.
Through the Fixed Guideway Tax via Utah Code 59-12-2216 (3)(b), counties are allowed to impose a local optional sales tax for ongoing and acute need for Public Safety Facilities and Public Safety purposes, up to 0.3% sales and use tax. The bulk of this tax (approximately 70%, as estimated by the Kem C. Gardner Policy Institute) would fall on tourists, allowing our county to backfill lost TRT revenue and help balance our budget without placing the burden on residents through property tax increases. This tax is not applied to gas or unprepared foods. Imposing this tax could alleviate our budget constraints while avoiding placing the burden entirely on our citizens.
I think the Budget Advisory Board should have a greater role in the budgeting process. We spend a lot of time and energy reviewing budgets, but we do very little to send folks back to the drawing table to reduce expenditures. We have talked about an internal “audit” to evaluate our efficiency overall, and lastly, working closely with the City to merge forces when it is deemed appropriate — not only to reduce our expenditures, but also to produce services that are working for all of our residents in the most efficient manner possible.
This is just one commissioner’s thoughts. I hope you find them valuable.
Trish Hedin, Moab
Trish Hedin is a current Grand County Commissioner.
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