2026 proposed budget supports the county’s fundamental services

Today, County Manager Penny Postoak Ferguson presented her proposed 2026 budget which includes no mill levy increase in the Johnson County taxing district, no new county general fund tax supported full-time equivalent employees and a strong focus on the county's fundamental programs and services.

The proposed budget of $1.90 billion is comprised of $1.39 billion in expenditures, representing an increase of 1.45% from the current budget expenditures ($1.37 billion), and $507.9 million in reserves. Reserves help with one-time needs, emergencies and unforeseen circumstances. They also help the county maintain its AAA bond rating from all three major rating agencies, the highest possible rating that puts Johnson County in the top 2% of all counties in the nation.

Despite an uncertain economic climate, inflationary increases and state/federal funding cutbacks, the proposed FY 2026 budget aligns with the BOCC Focus Areas and feedback from the annual community survey. It invests in the capital assets of buildings and infrastructure as well as the workforce, and maintains services for a growing and aging population.

"As the county navigates revenue and expenditure challenges, our approach to the 2026 budget has been centered on the core fundamentals of programs, assets and our workforce," said County Manager Penny Postoak Ferguson. "We are committed to maintaining existing services, accounting for inflationary impacts on food, medical contracts and commodities. It is also essential to take care of our existing assets, such as buildings and infrastructure, by appropriately funding ongoing capital replacement schedules."

The 2026 proposed budget includes a flat total mill levy of 24.125 mills. The proposed levies are 17.286 mills for the county, 3.816 mills for the Library and 3.023 mills for the Park and Recreation District.

Revenue and Expense Challenges

The proposed 2026 budget forecasts a 6.12% assessed valuation increase after appeals. That is a drop from the 6.78% growth for 2025. Other assumptions include a slowing of revenue growth in sales and use taxes.

Since 2020, state legislative changes have reduced Johnson County's annual revenue by $38 to $45 million. While local elections, motor vehicles, land records and permits, and other service provisions are mandated by the state, reimbursement rates and state grants are not keeping up with costs with ongoing federal and state legislation risks to the county revenue sources.

Over the past five years, inflation has taken its toll on county government costs, including an 80% increase in metal for culverts for stormwater projects, 50% increase in concrete for roads and bridges, and 30-55% in food costs for those served by the Corrections Department and in adult and juvenile detention centers.

County Workforce

The proposed budget includes 4,409.89 FTEs (no new FTEs, excluding Library and Parks and Recreation District, are paid for with new county property tax). This includes 23.97 new FTEs for FY 2026, and 28.81 FTEs (funded by grants and fees) added since the FY 2025 adoption for a net increase of 52.78 FTEs. Most of the new positions are in the Mental Health Department due to its status as a Certified Community Behavioral Health Clinic.

New FTEs include:

• 2 new Motor Vehicle specialists to increase front line work and help reduce wait times, funded from the reallocation of an existing vacant position.
• 1 Department of Corrections substance abuse counselor and a juvenile diversion office (using Opioid funding) in the District Attorney's Office to help address substance abuse in individuals.
• The Mental Health Center can fund 18 new positions with CCBHC funding to provide more mental health support for the Johnson County community. This includes the co-responder program, a Mobile Crisis Outreach Clinician, three additional case managers and a medical assistant.
• 2.3 out of the 3.75 requested new FTEs for JCPRD will be paid for by the district's fee enterprise fund as opposed to tax dollars.

The proposed FY 2026 budget recommends a 4.0% compensation pool for county employees.

Other Highlights

• $2.4 million in ongoing funding to cover inflationary costs for basic services including food and medical costs for those in a Department of Corrections residential facility or our jails, fuel, postage and technology/software maintenance and renewals.
• $250,000 to provide more nutrition and utility assistance to some of our most vulnerable residents.
• One-time funding of $100,000 for eviction mediation and $200,000 for the landlord incentive program to address housing challenges.
• One-time uses of general fund reserves for items such as replacement of some public access AEDs, license agreements for fire stations with co-location of MED-ACT services and funding to pay for the 2026 gubernatorial election.
• $2 million of one-time funds for road overlays, and a new allocation of $500,000 in ongoing funds for overlays.

"A Critical Point"

Over the past few years, County Manager Postoak Ferguson has demonstrated that the county's current revenue growth in the five-year forecast is not keeping pace with expenditures to maintain its existing service levels for residents and an increasing and aging population. Future projections indicate slowing revenue growth for assessed valuation, sales and use taxes. Inflation is still high causing increased costs on commodities.

For these reasons, looking at the county's fiscal health 2027 and beyond, on May 8, the BOCC approved ballot language for the November 2025 general election for Johnson County voters to consider renewing the Public Safety Sales Tax. More information is available at jocogov.org/salestaxrenewal.

Next Steps

The BOCC will hold Thursday afternoon department, agency and office presentations May 22 through June 12. Commissioners and staff will continue to discuss and deliberate until the scheduled budget adoption on Aug. 28.

Public feedback is a crucial step in the process, and there are several opportunities for residents to ask questions and provide feedback.

This year, the county will hold budget open houses at five different locations. All budget open houses take place from 4-6:30 p.m.

• June 9 (Corinth Library, 8100 Mission Rd., Prairie Village)
• June 10 (Central Resource Library, 9875 W. 87th St., Overland Park)
• June 17 (Lenexa Library, 8778 Penrose Lane)
• June 18 (Blue Valley Library, 9000 W. 151st St., Overland Park)
• June 24 (Gardner Library, 137 E. Shawnee St.)

The public hearing on the budget will take place at 6 p.m. Aug. 20 at the Olathe Conference Center, 10401 S. Ridgeview Rd. This will also serve as the Revenue Neutral Rate public hearing.

Details about the county's FY 2026 proposed budget, current and previous budgets and the budget process are available at jocogov.org/budget.