Washington County avoids a deeper financial crisis by clearing an $8 million debt, and leaders now focus on transparency to ensure future stability
MACHIAS, Maine — Washington County leaders are taking action to avoid a deeper financial crisis after paying off an $8 million tax anticipation note ahead of the Feb. 20 deadline.
“This action will hopefully wipe the slate clean for Washington County,” County Manager Renee Gray said.
County officials have said the budget crisis stems from years of structural budget shortfalls, delayed audits and cash-flow problems. Voters late rejected an $11 million bond in November that they said would have helped address the deficit.
Gray said 34 of the county’s 45 municipalities paid their share in full, contributing more than $5.6 million toward the loan.
“We all created this plan to ask the municipalities to pay the additional amount of the TAN that we knew the county was not going to be able to pay,” she said.
With last year’s debt cleared, county officials are now focused on maintaining services for 2026.
“This budget that we have for 2026 should preserve the services that we currently provide at the county,” said Courtney Hammond, County Commissioner for District 3
County leaders are finalizing a new $7 million tax anticipation loan from Machias Savings Bank. Under the agreement, the county must complete two years of outstanding audits, hire a full-time finance director, and submit monthly financial reports by the end of June.
“We have funded our sheriff’s office, our jail, our DA’s office,” Hammond said. “All of our services are intact, and I’m confident that this budget will preserve those services.”
County officials stressed the importance of oversight and transparency in future budgets.
“That is the big message, is for municipalities to please pay their county tax, on a payment schedule or all at once, and then we won’t need to borrow,” Gray said.
Ben Edwards, vice chair of the county’s budget committee, said the county has taken a critical step on a long road to stability.
Edwards added, “I think that there is a measure there to be proud of, that we are on a path to recovery here, and we did it ourselves, which I think is very much the Washington County way.”
Officials say these actions are laying the groundwork for a more stable financial future.
County officials say they hope to finalize the 2026 tax anticipation loan by Feb. 24.