Understanding the King County budget

King County’s operating budget is composed of two types of funds: dedicated funds and the General Fund. Dedicated funds are the largest portion, accounting for 83% of the total operating budget. By law, these funds are restricted to specific purposes, such as transit, sewage treatment, and voter-approved programs like regional Emergency Medical Services. 

The discretionary portion of the county’s operating budget is the General Fund, which amounts to 17% of the total operating budget. These funds pay for critical day-to-day services not supported by other revenues. Almost three quarters of the General Fund (72%) goes to pay for criminal justice and public safety, as mandated by the state. The remainder must fund other services, such as elections and human services (see pie chart).

The General Fund is supported mostly by property tax, sales tax, and fees. By law, King County collects property taxes on behalf of all taxing districts within the county. However, the county receives only 17 cents of every property tax dollar, with the rest going to other agencies (see bar graph). Similarly, the county receives less than one cent of the sales tax of 10 cents per dollar collected in most of the county.

Since Washington State enacted the 1% cap on property tax increases, counties across our state have faced a gap between revenue and the cost of providing services. This structural gap has resulted in the General Fund being cut by several hundred million dollars, with consequent reduction in services to county residents.

The funding gap has been exacerbated by the discontinuation of federal reimbursement for programs developed as a response to the COVID-19 pandemic, historic inflation, the rising costs of employee benefits, and other factors. A deficit of approximately $35 million is forecast for the General Fund in 2025.

The Council will review and adopt a balanced county budget, as required by law, in the fall of 2024.