The Panhandle Health District will hold a public hearing on a revised fiscal year 2027 budget this coming Tuesday after the five-county board rejected its original spending proposal last month.
The hearing is set for June 16, 2026 at PHD headquarters, located at 8500 N. Atlas Way in Hayden. Residents unable to attend in person can participate remotely through a live stream on PHD’s YouTube channel and via Microsoft Teams, with access links available at panhandlehealthdistrict.org.
Budget Rejected 4-1 in May
On May 20, commissioners from the five counties that fund the health district — Benewah, Bonner, Boundary, Kootenai, and Shoshone — voted 4-1 to deny the proposed FY27 budget. The plan carried a total price tag of $12,299,702, with counties collectively asked to contribute $2,216,903. Bonner County’s share of that figure stands at $470,211, while Kootenai County would shoulder the largest portion at $1,479,299.
A central sticking point was a proposed 2% cost-of-living adjustment for PHD employees. Bonner County Commissioner Brian Domke explained the difficulty that raise created at the county level: “The issue is, however, that if I were to vote to approve a COLA for the PHD staff, and then we are ultimately unable to match or do something similar for our own county staff, then I would be creating an inequity.”
Commissioners from Boundary and Shoshone counties added a broader philosophical objection, arguing the district should place greater emphasis on environmental services rather than expanding its clinical operations. The FY27 budget as originally drafted included extended clinic hours and several new staff positions — a social worker, two medical assistants, a nurse practitioner, and a public information officer — reflecting the Board of Health’s stated priority of growing naturopathic and preventative medicine offerings.
PHD Medical Director Gregory Pennock indicated the revised proposal will aim for “more budget neutrality,” though specific adjustments had not been publicly detailed ahead of Tuesday’s hearing.
Opt-Out Provision Added for Counties
In an effort to address the concerns raised by rural commissioners, the modified budget proposal will include a provision allowing individual counties to opt out of clinical services funding without altering their total monetary contributions to the district. That change is intended to give counties like Boundary — located more than 70 miles from the Hayden headquarters — more flexibility regarding services their residents are less likely to use.
Current PHD clinic operations run on a rotating schedule across the region. The Hayden location holds appointments on Mondays, Fridays, and every other Wednesday. The Sandpoint clinic operates on Thursdays, while sites in Kellogg, Bonners Ferry, and St. Maries hold sessions on rotating schedules throughout the month.
Statutory Deadline Looms
State law requires the Panhandle Health District to pass its budget during the window between the first Monday in June and the first Monday in July, making the June 16 hearing time-sensitive. Bonner County, by comparison, operates under a later internal budget deadline in early September, giving county officials somewhat more runway on the local side — though the PHD vote involves all five member counties and cannot wait for any single county’s schedule.
The tight statutory window means commissioners and PHD leadership have little margin for continued disagreement. If the revised proposal fails to win approval from a majority of county representatives at Tuesday’s hearing, the district would face significant pressure to find a compromise quickly or risk missing the legally required adoption period.
What Comes Next
The June 16 public hearing at PHD’s Hayden headquarters begins the formal process of reviewing the revised budget. Members of the public are encouraged to attend in person or join remotely. Should the board reach agreement on the modified spending plan, a vote would follow. If the revised budget passes, each county — including Bonner — will move forward with incorporating the PHD contribution into their own fiscal planning. Any continued impasse would leave the district in uncertain financial territory heading into the new fiscal year.
For Bonner County residents interested in related local fiscal pressures, housing affordability data from a statewide survey also points to strain on county budgets across North Idaho. More information is available in our earlier coverage: Crapo Housing Survey Draws 5,000-Plus Idaho Responses, Points to Affordability Strain Statewide.