Rising health insurance costs, deferred maintenance and fully funding the county jail are driving Penobscot County’s proposed 23% budget hike.
The county’s budget has risen sharply in recent years. Last year, commissioners approved a 15.6% jump. Next year’s budget is set to rise by $6.7 million, with all but one county department projecting higher expenses. Revenues are expected to only rise by $355,000.
The final budget has not yet been approved.
The county isn’t alone in seeing rising healthcare costs, staff salaries and maintenance expenses. It’s a common trend in many of the proposed budgets for Greater Bangor communities. But the county is left to deal with rising operating costs for the Penobscot County Jail, forcing its budget to outpace climbing expenses in many local communities.
This is the second year the county will fully fund the jail, which has drained approximately $11 million in unbudgeted costs since 2022. Next year, about $2.1 million is set to be added to the jail’s budget.
The county’s budget advisory committee last week scrutinized much of next year’s proposed budget but did not discuss cutting jail funding. Members then approved the budget without changes in an 8-7 vote.
Penobscot County Commissioner Dan Tremble voted against the budget, saying it would make taxes too high for residents.
“What we have not done is to adequately fund the county, and we’ve underfunded, underfunded, underfunded, hoped, hoped, and just kicked it down the road,” Commissioner David Marshall said at a budget meeting last month.
Personnel costs are also a significant driver of the proposed $41 million budget. Costs for employee benefits, healthcare and salaries went up roughly $2.7 million. The spike also accounts for three new employees: a grant manager, a sheriff’s deputy and a maintenance worker who will be hired next year.
Interest payments on yearly loans, reserve accounts for departments and building maintenance also made up a sizable portion of the spike.
Funds put into reserve accounts will be used to buy supplies and any unforeseen maintenance, according to County Administrator Blair Tinkham. The $500,000 added to the sheriff department budget will be spent on outfitting deputies and buying more ammunition, which are at “catastrophic levels” after reserves were depleted, Chief Deputy John Knappe said.
Penobscot County Commissioners will hold a public hearing and vote on the 2027 budget on Nov. 18.