Whatcom County executive warns of possible layoffs as finances remain grim
Whatcom County could be laying off staff and using employee “schedule adjustments” to balance the books in the next two-year budget cycle.
In an email to all county employees Monday, County Executive Satpal Sidhu warned that a “structural imbalance” is looming because labor and materials costs are rising and revenues are stagnant as his office begins to craft its 2027-28 spending plan.
“Last year, as part of our mid-biennium budget review, we made substantive progress toward closing that gap — thanks to innovative work by our finance team, department leadership, and employees across the county who identified cost-savings. As a result, we concluded last year’s process without any budget-related layoffs, which resulted in a healthy General Fund balance outlook for the end of 2026,” Sidhu said in the email, which was shared with The Bellingham Herald.
Whatcom County had a nearly $700 million budget for 2025-2026, lifting a hiring freeze that it instituted in 2024 amid a projected $15 million deficit. The county had 1,000 employees in 2025, and was the fifth-largest employer, according to a Western Washington University report.
Its current workforce totals 1,154 people, including 13 part-time workers, spokesman Riley Sweeney told The Herald.
“Unfortunately, the outlook for 2027-28 points to a continued gap between revenues and expenses. As a result, we will need to consider both targeted and countywide solutions, which may include layoffs and schedule adjustments, subject to applicable collective bargaining obligations. We are also evaluating longer-term structural changes to right-size programs and services based on available funding, county priorities, and policies obligations. While this is not our preferred path, it reflects the financial realities we face today,” Sidhu said in his email.
Department heads are in the process of planning their 2027-2028 budget priorities, according to an online planning document. Preliminary budgets are due by May 15, with final proposals required by July 8 for most departments and by July 15 for Public Works, Health and Community Services and the Sheriff’s Office.
The Executive’s Office typically presents its two-year budget in the fall of even-numbered years, and the County Council reviews the spending plan and votes on it in late November or early December.
“In addition to tackling the biennial budget process, we will take immediate steps to end 2026 with a strong general fund balance” Sidhu said. “This will allow for a window of time to adapt to any upcoming changes or service reductions and to reduce impacts on staff and the public. As your department heads announce anticipated changes in the weeks ahead with respect to areas like hiring, travel/training, and discretionary contracting, please take their guidance seriously and with understanding of the larger context.”
