Hamilton County's administrator says balancing the 2026 budget will be "challenging” because of a growing gap between requests and revenues.
Jeff Aluotto presented Tuesday at the Hamilton County commissioners' Budget Forum.
He says the county started this budget cycle facing a $60 million gap, the highest he’s seen.
“I don't know that I recall a $60 million gap between requests and revenues since I've been here,” Aluotto said. “Maybe we've been close. I know we've been in the 40s, maybe approaching 50.”
Budget requests from departments and offices are increasing year after year, Aluotto says.
At the same time, the county’s revenue growth is plateauing. Aluotto says economic uncertainty, falling interest rates, and a slowdown of sales tax growth are all factors.
“This is not an indictment of anybody,” Aluotto said. “This is just saying what we are seeing and the fact that we have to find a way to live within our means.”
Aluotto says the budget office will ask each department to come up with ways it can help close the gap.
The county also is dealing with uncertainty over proposed federal and state policy changes as it works on the 2026 budget.
Aluotto says state legislative efforts to curb inside millage would cost the county tens of millions of dollars. So would federal efforts to change how costs are shared for programs like SNAP and Medicaid.
“All those things are going to have ripple effects into the services that the county provides, and the cost that counties have to pay to provide those services,” Aluotto said. “We're really still at the very leading edge of figuring out, how is this going to impact us? What's going to be the impact on the general revenue of the county, and thus on all the other services that we provide?”
The proposed 2026 budget is expected to come out in mid-October and commissioners must approve a final spending plan by the end of December.
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