Receive the 2025-26 3rd Quarter Budget Monitoring Report, adopt a budget resolution amending the 2025-26 revenues and appropriations, approve amendments to the 2025-26 Authorized Equipment List, and approve the Recommended Budget for fiscal year 2026-27. (General fund impact $138,617,987) (Webb/Haynes/Liddicoet) (Est. Staff Presentation: 30 min)

I. 2025-26 3rd Quarter Budget Monitoring
Year-end projections have been developed by each department based on actual revenue and expenditure data through March 31, 2026. The sections below highlight areas where significant variances from budgeted amounts are projected, or where budget adjustments or other actions are recommended.  A summary of the 3rd Quarter projections for each department is provided in Attachment A. For those budget units where staff recommend a budget adjustment, it is noted in this narrative and included in the budget resolution provided in Attachment B.

Agriculture: Agriculture is projecting to end the fiscal year with a negative net variance of approximately $1.16 million. This is primarily driven by an unbudgeted capital improvement expense in the Ag Building Replacement fund that is projecting a negative variance of $1.45 million. The department is requesting a budget adjustment to pay for this project with the use of available fund balances.

The negative variance is partially offset by a positive variance in the Ag General Fund unit of $291,000. This variance is driven by increases in fees and Unclaimed Gas Tax and Mill reimbursements. The division is also projecting $109,000 in salary savings due to 3 vacancies in the Office Support Specialist, Accounting Tech, and Ag Tech positions.

Staff recommend adopting the budget resolution in Attachment B.

Assessor/Clerk Recorder/Elections (ACE): The Assessor/Clerk Recorder/Elections department is projected to end the fiscal year with a positive variance of approximately $122,000 with the majority of the variance occurring in the Assessor and Elections divisions.

The Assessor’s division is projected to end the fiscal year with a positive net variance of approximately $93,000.  This variance is attributed to projected Salary and Benefit savings, which exceeded the division’s salary savings factor, due to the ongoing vacancies of a  Principal Appraiser and Appraiser II as well as savings in Services and Supplies due to lower than budgeted expenses related to the GIS position that supports ACE.  Partially offsetting these increases are unbudgeted capital expenses for the ACE Training Room that are to be covered by the State Supplementation for County Assessor’s Program (SSCAP) grant revenues.

The Clerk Recorder’s division is anticipating ending the year with a small positive variance of $7,100 that is primarily attributed to monthly recording revenues trending higher than originally forecasted.  These additional revenues are partially offset by increased Salary and Benefit costs in the unit that include unbudgeted leave buy-out expenses and increased costs due to the inclusion of the department’s salary savings factor that was included as part of their budget.

The Elections division is projecting to end the year with a positive variance of $21,800.  This variance is specifically attributed to vacancy savings in the unit and Capital Asset expenditures trending under budget as a result of updated project timelines resulting in expense savings of $265,000. Offsetting these expenditure savings are reduced Election Services revenues due to the June Primary Election having less Davis specific measures and contests on the ballot than originally anticipated ($152,000) as well as other Election revenues being overbudgeted by $107,000.

Board of Supervisors: The Board of Supervisors is projected to conclude the fiscal year with a net positive variance of $317,000.  This variance is the result of vacancies within several of the supervisorial districts throughout the fiscal year.

Regional Child Support Agency: The Regional Child Support Agency (RCSA) is projecting to end the fiscal year with a positive net variance of $115,316.  This variance is primarily attributed to Salary and Benefit savings of $354,000 due to vacancies that include two Child Support Specialists and a Program Manager position.  These anticipated savings are projected to be partially offset by reductions in Federal revenues of $232,000 and cost plan charges that were higher than originally budgeted.

Community Services: The Department of Community Services is projecting to end the fiscal year with an overall negative net variance of $1.68 million.  The majority of the negative variance comes from Non-General Fund sources, such as the Waste Management and Roads divisions. There are other notable variances in Environmental Health, Animal Services, Building, and Cannabis.

The Integrated Waste Management (IWM) division is projecting an overall $1.1 million negative net variance. The division was anticipating a $4.25 million loan from the Water Board to be approved in this fiscal year. The loan approval is being delayed, which is causing a large deficit in revenue, along with a $2.77 million surplus in corresponding expenses for the Unit 7J constructions project. The division is also seeing higher than expected investment revenue ($792,000), salary saving ($164,000) due to a series of vacancies  and lower than anticipated fee revenue ($565,000).

The Roads fund is projecting a negative net variance of $180,000. The division budgets the full cost of all projects in their first year of funding and carries forward unused budget until the projects are completed. This negative figure represents a 0.5% variance from the budgeted $33.8 million in expenses. Due to the unpredictability of project billings, this number could vary significantly depending on the projects completed, and the reimbursements received before the end of the fiscal year.

Environmental Health is projecting a positive net variance of $221,358. The division is seeing surpluses related to increased collection efforts ($57,000) and higher than expected interest revenue ($12,000), along with lower A-87 indirect cost allocation expense ($183,000) and salary savings ($111,000) due to vacancies in a Hazmat Inspector and Land Use Supervisor position. These surpluses are being partially offset by decreased License and Permit revenue ($145,000) that is caused by a general economic slowdown in permit applications.

Animal Control Services is projected to end the fiscal year with a negative net variance of $379,000. Both revenues and expenditures are anticipated to end the fiscal year under their projected budgets with the main driver being a $400,000 deficit in license and permit revenue that includes an accrual posting error that understated revenues in the current year by $217,000.  The majority of this variance is offset by increased revenues from other government agencies resulting in an overall revenue deficit of approximately $200,000. The deficit in expenditures is due to two grants that will be fully spent in the current year but were not budgeted. The grants include money from the State of California to purchase supplies and equipment, and a Sniptember grant for spay and neuter services. The division is requesting a budget adjustment to be able to fully utilize these funds. Furthermore, based on the projected negative variance, it is estimated that the division will end the fiscal year with a negative fund balance of approximately $170,000. To keep the Animal Services fund balance positive, additional General Fund dollars will be needed at year end.

The Building division is projecting a $280,000 negative net variance. Although this is an enterprise fund, this negative variance will require additional General Fund dollars to balance. The division is anticipating lower than anticipated revenue ($450,000) primarily driven by a permit revenue deficit. Based on historical trends, the division budget is higher than actual anticipated revenue. This is being partially offset by a $170,000 surplus in expenses due to the division relying less on contracted services for permit reviews.

Cannabis is projecting to the end the fiscal year with a negative net variance of $104,000. This negative variance is the result of decreased cultivator license fees ($136,000) and overages caused by additional A-87 indirect cost allocation ($130,000). These reductions in net fund balance are partially offset with salary savings from a vacant cannabis inspector ($50,000), additional investment revenue ($45,000), and reduced interdepartmental and California Cannabis Authority charges ($68,000). Staff recommend the use of available fund balance to fund the projected net negative variance.

Staff recommend adopting the budget resolution in Attachment B.

County Service Areas:  The County Service Areas (CSAs) are projecting to end the fiscal year with a positive net variance of approximately $956,000. The majority of districts have small variances of less than $10,000 with the majority of the positive variance coming from the North Davis Meadow Water CSA. There are other notable variances in the Wild Wings Golf Course, Water, and Sewer CSAs, and the El Macero Water CSA.

The North Davis Meadow Water CSA is projected to have a positive variance of $803,000. This variance is due to delays in the water consolidation project that are due to issues encountered with adequate water pressure. Once the issue has been resolved, the project will establish a tie-in date, and eligible expenses will be billed to the grant.

Wild Wings Golf Course is projecting a positive variance of $65,000 despite undergoing significant change with golf course management.  The division is projecting to be able to cover all of its costs, including the final loan payment to the water and sewer fund.

Wild Wings Water is projecting a negative variance of $137,000 due to issues encountered with billing costs to the DWR grant. The division is balancing delays in projects with past or approaching grant deadlines. The division is requesting release of retention for the grant along with extensions. In the worst-case scenario, where funding is not met, the division may request a loan from Wild Wings Sewer to cover any shortfalls.

Wild Wings Sewer is currently projecting a positive variance of $94,000 due to investment revenue exceeding projections ($25,000) and utility costs coming in lower than projected ($65,000). Staff confidence in this projection is low due to the unpredictable nature of sewer projects, and the timing of their final utility charges.

El Macero Water is projecting a positive variance of $54,000, but the majority of spending in this unit occurs at the end of the year when total water usage is known. Given that, the projection may change with the year-end monitor. If not, fund balance does exist to support additional expenditures.

County Administrator’s Office: The County Administrator’s Office (CAO) is projecting to conclude the fiscal year with a positive net variance of $337,000. Of this variance, $213,000 is the result of a series of temporary vacancies throughout the year. The remainder of the positive variance is related to a series of adjustments to available fund balances between various Housing Assistance units overseen by the CAO’s Office. These adjustments are authorized and allowed by the granting agencies.  

The Grand Jury is anticipating a net negative year end variance of $25,000 due to the completion of three special grand jury sessions.  While a deficit in this unit was anticipated during the Midyear Monitoring process, it has now increased as during the Midyear reporting period only one special session of the Grand Jury had been convened. Staff recommend the use of General Fund contingency to fund this variance.

The remaining units overseen by the County Administrator’s Office are projected to finish the fiscal year within budgeted amounts or with projected surpluses.

Staff recommend adopting the budget resolution in Attachment B.

Countywide: All budget units within the Countywide budget are projected to end the year within budgeted amounts or with a positive net variance, leading to an anticipated positive net variance of $4.35 million.  Many units within the Countywide department are projecting sizable surpluses due to higher than anticipated revenues and interest earnings.  Specifically, Development Impact Fees are anticipating ending the year $1.67 million higher than anticipated, while Chula Vista earnings are contributing an additional $60,000 in revenue to that fund. While projections for surpluses or balanced units include the Public Safety Maintenance of Effort, it is important to note that these projections are based on actuals as of March 31, and performance of the solar array, significant changes in weather, or variance in population at the jail in the final quarter of the year may affect projections.

Countywide general-purpose revenues are projected to end the year $1.8 million in excess of budgeted amounts due to higher than anticipated revenue associated with the Redevelopment Pass Through agreements ($1.1 million) and Over Head Cost Reimbursements ($1.4 million).  

Ongoing high interest rates are benefiting several special revenue funds in Countywide, generating unanticipated interest earnings where they were not budgeted for. These funds include the Accumulated Capital Outlay and Local Innovation Sub Account funds among others.  These funds will remain available for appropriation in future fiscal years.

District Attorney: The District Attorney’s Office is projecting to end the year with a negative net variance of $838,000. Public Safety Fund units, which are supported by the General Fund, are projected to end the year with a surplus of $495,000. The Criminal Prosecution unit is projected to conclude the fiscal year with a net positive variance of $709,000, all of which is a savings to the Public Safety fund. However, a portion of this projected positive net variance will be needed to address a projected shortfall in the Special Investigations Unit, ($230,000).  This shortfall is the result of unbudgeted equities within several of the bargaining units within this unit, but more specifically related to anticipated loss of state revenue in the Child Abduction Unit.  

Following a state audit of the Child Abduction Unit, Yolo County was ordered to pay back approximately $2.2 million in previously awarded funds.  State Controller’s Office audits of county Child Abduction programs throughout the state have yielded similar results, and initial rulings from the Commission on State Mandates indicate the findings of these audits may be invalid.  While these are initial rulings, staff have interpreted them as a positive sign that action taken by advocates and other counties may alleviate Yolo’s need to repay funds moving forward.

The District Attorney’s special revenue funds are projected to have a negative net variance of $1.3 million primarily due to an anticipated deficit in the Consumer Fraud/Environmental Protection Fund ($1.43 million) and Domestic Violence Programs ($1,900). The net negative variance in Consumer Fraud/Environmental Protection was identified in the midyear monitoring process and is related to the unpredictability of cases concluding and issuances of settlements. Within Domestic Violence Programs, revenues are trending slightly lower than anticipated, contributing to the slight shortfall.  Both funds have fund balance available to cover any negative variance at year-end.   The remainder of the District Attorney’s special revenue funds are projecting positive variances due to unanticipated interest earnings or incidental savings.

Financial Services: The Department of Financial Services (DFS) is projecting to end the year with a positive net variance of $734,000. This is primarily related to salary savings of $696,000 due to a series of vacancies experienced throughout the year, which included the Deputy Chief Financial Officer for approximately half of the fiscal year. These vacancies are causing lower than anticipated revenues ($142,000), as a portion of these salary expenses can be reimbursed through the Treasury Pool. However, this shortfall is being offset by higher than anticipated accounting charges to other County departments and funds.

The department has requested to utilize $14,500 in anticipated savings in Services and Supplies to purchase a replacement folding machine.  Staff recommends approval of this purchase.

Staff recommend adopting the budget resolution in Attachment B.

General Services: General Services is projecting to end the fiscal year with a positive net variance of $2.58 million. Approximately $287,000 of the savings are from General Fund sources in the Facilities and Parks divisions, with $1.08 million coming from project savings in various funding sources within the Facilities and Airport divisions. The remaining $1.16 million variance is generated from savings in the Natural Resources division.

The Facilities division is projecting to have a positive net variance of $1.2 million. There is a deficit in revenue and a surplus in expenses that are driven by delays in the Facilities Conditioning Assessment, and the Courthouse Window project. The ADA Transition Plan project and the countywide janitorial contract both came in under budget leading to additional variances in revenue and expenditures due to those costs being transferred to other departments. Of the overall savings in the division, only $218,000 is savings in the General Fund as the remainder of the projects were funded with other sources.

The division is also seeing $302,000 in salary savings due to vacancies in the Building Craftsmechanic, Parks and Facilities Worker, and Energy Manager positions, along with incidental savings in Services and Supplies.

Parks is projecting a positive net variance of $66,000. This positive variance is the result of salary savings ($52,000) from a staff member being on medical leave and a vacancy in the Parks and Facilities Worker position, along with decreased services and supplies cost ($80,000) tied to the campground no longer incurring costs from Waste Management and internal fleet charges. These surpluses are partially offset by a loss in revenue from the Knights Landing Boat Ramp remaining non-operational ($73,000).

The Airport is also projecting a positive net variance totaling approximately $98,000. This surplus is the result of higher-than-expected revenue from fuel sales and airport use ($37,000), a vacancy in an accountant position that provides support to the division ($37,000), and lower than expected depreciation costs ($17,000)

Finally, the department is projecting a surplus of $1.16 million in the Natural Resources division. This division was recently transferred from the Department of Community Services to General Services and, as such,  revenue and expenses in this division still have a large amount of uncertainty as General Services gets a full understanding of the ongoing projects. Additionally, staff are projecting that the Huff’s Corner Phase II project will carry over into next fiscal year, which will generate some additional savings in the current year.

Health and Human Services Agency: The Health and Human Services Agency is projected to end the fiscal year with a positive variance of $4,121,000.  This projected surplus exists primarily in the department’s revenue funds where these funds are projected to end the year in a $4.07 million surplus.  Included in these revenue funds are 2011 and 1991 Realignment revenues, MHSA revenues, and IGT revenues.  The majority of the anticipated variance is in the Mental Health Services Act fund that is currently projected to end the year in a surplus of $5.78 million.  This variance is primarily due to Board of Supervisors’ direction to reduce contracts and internal programming in the unit due to a structural deficit within MHSA.  To further analyze the department’s units, a breakdown by departmental branch is below:

Child, Youth, and Family (CYF)
The Child, Youth, and Family branch is anticipated to end the fiscal year with a positive net variance of $41,500.  These savings are primarily attributed to vacancy savings in the unit ($1,984,346), projected savings in expense transfer reimbursements ($558,234), and savings due to a reduction in Mental Health contracts in the unit resulting in Services and Supplies savings ($1,933,430) as well as savings in Intra.  Offsetting the majority of these expense savings are reduced revenues primarily in the Federal Public Assistance accounts as the ability to claim for reimbursements is reduced due to lower expenditures.
 
Additionally, the CYF division has requested additional general fund dollars in the unit of $241,913 to cover the projected revenue decrease in Child Welfare that is a result of caseloads shifts between Federal and State and the availability of revenues to cover those shifts.  Staff recommend this action for approval.

Service Centers
The Service Centers branch is projected to end the fiscal year balanced with no net variance.  The expenditures in the unit are expected to end in a surplus of $1.65 million primarily due to salary savings and capital asset expense savings due to the Pacifico Housing project not moving forward.  These savings are partially offset by an increase in client benefit payments, reducing the overall expense surplus.  Revenues are also trending lower than originally projected in the branch.  This is due to updates to the State’s CalWORKs single allocation and Federal Public Cal Works Administration revenues that resulted in a net decrease of $1.65 million completely offsetting the projected expenditure savings.

Adult and Aging
The Adult and Aging branch is projecting to end the fiscal year balanced with no net variance.  Revenues in the Adult and Aging branch are anticipated to be lower than originally budgeted due primarily to reductions in State revenue associated with expenses associated with homeless grants such as Behavioral Health Bridge Housing (BHBH) , the Byrne State Crisis Intervention Program Grant, and caseloads were lower resulting in less revenue being drawn down from these sources. Offsetting the reductions are Salary and Benefit savings and savings associated with Support and Care of Persons accounts resulting in the unit ending the year balanced.

Client Aid
The Client Aid branch has also projected to end the fiscal year balances with no net variance.  Though the unit experienced expense savings due to reductions in various assistance payments throughout the department, revenues are also projected to finish the fiscal year lower than budgeted.  The reduced revenues are also attributed to reduced Federal Public Assistance payments that include CalWORKs, Fostercare, and Adoption assistance payments.

Public Health
The Public Health branch is projected to end the fiscal year with a small positive variance of $8,800.  While the unit is experiencing an increase in Service and Supply expenditures principally related to Maddy hospital expenses for unanticipated claims ($657,000), this is being offset by anticipated salary savings ($588,000) and savings in Interfund Transfers ($81,000).  These savings are also offsetting a small deficit of $12,000 between several funding sources in the division.

Staff recommend adopting the budget resolution in Attachment B.

Human Resources: The Human Resources department is projected to end the fiscal year with a positive variance of $770,000.  Savings exist throughout the department’s units with the majority of the anticipated savings being in main HR operating unit.  It is important to note that the surpluses that exist in the Unemployment and Dental Internal Service Funds are anticipated to fall to fund balance at the end of year.

The HR main operating unit is projecting to end the year with a positive variance of $612,000.  This variance is attributed primarily to Salary and Benefit savings in the unit ($731,000) due to departmental promotions leading to short-term vacancies, a retirement in the unit and short-term vacancies.  Partially offsetting these savings are decreased revenues of $117,000 that are attributed to less revenue being collected for Health and Human Services dedicated positions as they have also experienced vacancies.

The Risk Management division is anticipated to end the year with a positive variance of $37,600.  The variance is attributed to higher revenues due to equipment reimbursements from YCPARMIA, an unanticipated check from the State Controller’s Office for unclaimed property, and higher than budgeted revenues related to the County’s insurance.  Additionally, expenditures in the division are projected to end the year with savings of $3,800 due to lower than projected Satellite Finance charges. 

Innovation and Technology Services: The Innovation and Technology services department is projected to end the fiscal year with a positive net variance of $1,179,408.  

The Innovation and Technology Services main operating unit is projected to end the year with a positive variance of approximately $1,082,162.  This variance is partially attributed to the timing of award disbursements for the Local Agency Technical Assistance (LATA) grant that was awarded in FY2023-24 with a portion on grant proceeds arriving in FY2025-26 ($408,163). 

Expenditure savings in the unit exist primarily in Services and Supplies due to reductions in training expenses as well as net savings in Professional Services IT agreements.   Additionally, Salaries and Benefits are projected to end the year under budget due to vacancies throughout the year that include two Systems Software Specialists, a Technical Support Specialist and a GIS Analyst.  These overall expenditure savings are slightly offset by a reduction in Intrafund transfers due to less expenditures being available for transfer out and also due to savings with the ACE dedicated GIS Analyst that was vacant for a significant portion of the year. 

The Telecom division is projecting to end the year within budgeted amounts.  Savings are anticipated primarily in Salaries and Benefits due to a vacant Supervising Telecom Specialist.   Additionally, savings are anticipated in Services and Supplies due to lower than budgeted Professional Services agreements and not utilizing funds that were appropriated for Emergency Cable repairs. 

It is important to note that the anticipated savings in ITS and Telecom result in an offsetting reduction in internal charge revenue which results in a balanced year-end projection.

Library: The Library is projected to end the fiscal year with a positive net variance of $1,266,255.  The majority of these variances are attributed to anticipated savings in Library operations ($706,457) and in the Davis Library Special Tax ($558,349) fund due to a lower than anticipated transfer to the Library Operations unit as described below.

Library operations are anticipated to end the fiscal year with a positive variance of $707,000. Expenditures in the unit are expected to see savings of $707,000 primarily due to short-term vacancy savings that include an Assistant County Librarian, Winters Library Branch Supervisor, and positions being filled at lower steps than originally budgeted.  Additionally, services and supplies savings include lower than anticipated building maintenance costs and budgeted A87 costs being significantly lower than originally budgeted.  Overall, year-end revenue estimates are on track with budgeted amounts that include Property tax and RDA Pass Thru revenues being higher than anticipated.  These increased revenues are offset by a lower transfer from the Davis Library Special Tax Fund that subsidizes library services in Davis.

Probation: Probation is projected to end the year with a positive net variance of approximately $1 million with roughly $100,000 of that savings coming from the Public Safety Fund. The remainder of the positive variance is due to savings in Juvenile Probation Services, and Juvenile Realignment Block Grant special revenue funds.

Juvenile Detention is projecting to end the year with a positive variance of approximately $100,000. This is due to a 6-month vacancy in the assistant superintendent position.

Juvenile Probation Services is projecting to end the year with an overall positive variance of $462,000. This savings is driven by unbudgeted investment revenue ($89,000), savings in wraparound services that were not needed ($175,000), and salary savings due to vacancies in 2 Probation Officer positions ($200,000).

Finally, the Juvenile Block Grant division is projecting savings of $401,000. The division is anticipating increased revenue from the Block Grant ($64,000) and investment revenue ($96,000). Additionally, due to only one youth being placed in the Secure Track program in El Dorado County, this is generating a substantial expense savings in the division ($241,000).

Public Defender: The Public Defender is projecting to end the year with a positive net variance of $196,000. Of this projected savings, $79,000 is expected to be incurred in the General Fund. Within the General Fund the Public Defender anticipates $118,000 in salary savings due to a series of vacancies experienced throughout the year, along with unanticipated revenue related to Care Court ($28,000) that is offsetting anticipated overages ($51,000) in Services and Supplies and lower than anticipated revenue ($19,000) related to revenue related to HHSA reimbursement for Prop 47 intake completed by attorneys.   

The Public Defender’s special revenue funds are anticipating a net positive variance of $116,000 due to anticipated savings in salaries within the Revocation fund ($109,000) and additional interest earnings in the Community Corrections Partnership fund ($7,000).  These savings will fall to fund balance and can be appropriated in future fiscal years.

Sheriff: The Sheriff’s Office is projecting a positive net variance of $5.5 million.  Approximately $4.26 million of the variance is due to the Sheriff’s special revenue funds.  Public Safety Fund units, which are supported by the General Fund, are projected to end the year with a $1.2 million positive variance. 

The majority of the Sheriff’s Public Safety units are anticipating minor net positive variances by the end of the fiscal year.  However, the Detention division is projected to end the fiscal year with a $1.3 million positive net variance due largely to approximately 26 ongoing Correctional Officer vacancies ($1.3 million).  The Detention unit is also experiencing expenditure savings due to a relatively low population ($14,000).

Both the Sheriff’s Community Corrections Partnership and Court Security units are projecting to end the fiscal year with negative net variances of $261,350 and $2,000 respectively.  The projected net variance in the CCP fund was identified during the Midyear Monitoring process and is related to a sizable salary savings factor applied in the current year.  The projected net negative variance in Court Security is related to anticipated negative interest earnings and will likely lead to the unit requiring additional General Fund support by the end of the fiscal year.

The Small and Rural fund is showing a positive net variance of $2.8 million due to a pause in the implementation of their planned RMS/JMS system.  The department is currently in contract negotiations with a vendor for this system and will be planning to restart that implementation in the coming fiscal year.  Any unspent balance in this fund will fall to fund balance for reappropriation in a future fiscal year.

Staff are recommending the addition of a dishwasher heating booster to the equipment list.  A budget adjustment was previously processed administratively to allow for this purchase. 

The department did not request any additional adjustments.

Contingency Appropriations: The table below reflects the balance of all contingency appropriations as of June 2, 2026.
 

The County policy on Fund Balance and Reserves identifies appropriation for contingencies as the first line of defense against uncertainty and are budgeted in specific funds to cover minor unanticipated needs of a non-recurring nature or for small increases in service delivery costs that are not anticipated during budget development.  Any contingency balances that remain unspent at year end will be appropriated as part of the 2026-27 Adopted Budget.

II. FY26-27 Recommended Budget
This County Administrator's FY2026-27 Recommended Budget staff report provides additional information to assist the Board of Supervisors in considering the budget. The Recommended Budget (Attachment e) includes a department-by-department review of anticipated revenues and expenditures and information regarding the funded programs. The purpose of the June 9th Budget Hearing is for the County Administrator to present an overview of the Recommended Budget and for the Board to make any adjustments deemed appropriate before approving it as the initial spending plan for FY2026-27.

State law requires the Board of Supervisors to adopt a resolution setting the County's budget each year and prescribes the required format for such action. The FY2026-27 Recommended Budget resolution (Attachment F) adopts and implements the initial budget for the upcoming fiscal year, as considered and amended by the Board of Supervisors during the budget hearing. This budget will provide appropriation authority until the FY2026-27 Adopted Budget is approved in September. The Board may modify this budget at any time between now and the Adopted Budget hearing by a 3/5 vote. Following approval of the Adopted Budget, a 4/5 vote is required for most budget modifications.

Before approving the FY2026-27 Recommended Budget, the Board may revise the recommended appropriations, revenues, and staffing allocations. Exhibit 1 to the Budget Resolution summarizes appropriations and revenues by fund, department, and budget unit at the account group level. Within Exhibit 1, the FY2026-27 Capital Improvement Program budget is summarized separately from the operating budget. Inter-fund transfers are subtracted from the total consolidated County budget to eliminate double counting.

Approval of the Recommended Budget allows the County to begin the fiscal year with a balanced financial plan. As discussed further below, the Recommended Budget does not include a number of departmental budget requests, which staff recommend be deferred to the Adopted Budget in September. For the Board's consideration, the sections below highlight the changes, challenges and risks presented in the FY2026-27 Recommended Budget.

Budget Development
The Department of Financial Services (DFS) and County Administrator first updated the Board on January 13, 2026, where the Board received an update on the budget outlook for the 2026-27 fiscal year and reviewed the Five-Year Financial Forecast. At that meeting, staff shared an anticipated General Fund budget deficit of $27 million in 2026-27, growing to more than $47 million by 2030-31.  This situation, as staff shared with the Board, reflects a structural budget deficit, whereby ongoing expenditures exceed and are outpacing ongoing revenues.

The presentation on January 13 also touched on potential options to address the County’s structural deficit, which requires some combination of revenue increases and expenditure reductions.  While the Board has initiated a discussion on new revenue options, forming the Revenue Generation Ad Hoc committee, many options require voter approval and cannot be implemented immediately.  As such, expenditure reductions were required in 2026-27 in order to make progress toward addressing the structural deficit.

At the January 27, 2026, Board meeting, staff further elaborated upon the Five-Year Forecast and provided a number of other key metrics that indicate the increasing financial challenges the County is facing.  These metrics include, but are not limited to:
After hitting a peak in 2022-23, General Fund unassigned fund balance has been steadily decreasing for the past four years. This reflects increasing financial strain and is quickly depleting a resource that has been used to balance the budget.

• Since 2020-21, an increasing amount of vacancy savings has been required to balance the budget. While this was initially done to reflect vacancy trends during and after the pandemic, the magnitude of vacancy savings included in the budget now prohibits some departments from filling vacant positions. The increased use of vacancy savings has also partly contributed to the decline in fund balance.
• The initial starting base budget gap, which reflects the funding required to maintain status quo operations, has increased from $9.3 million in 2022-23 to nearly $40 million in 2025-26. This reflects the increasing challenge in balancing the budget, particularly in light of declining fund balances.
• Since 2017-18, there has been an increasing trend of relying on unassigned fund balance to balance the recommended budget. This trend is problematic, as the recommended budget includes limited one-time expenditures, meaning that an increasing amount of fund balance has been used to fund ongoing operational costs.
• General Fund contributions to reserves and contingency appropriations have steadily declined over the last several years, reflecting less financial capacity to provide for budgetary safeguards.
• Increasingly aggressive measures have been required to balance the budget in recent years, including unfunding General Fund positions, reducing travel and training budgets, utilizing policy reserves, eliminating the supplemental pension charge, and utilizing temporary funding from the Chula Vista fund.

These metrics indicate that since approximately 2021-22, the County has increasingly relied on a variety of budgetary maneuvers to balance the budget, including reduction or elimination of contributions to reserves and contingencies, suspension of the supplemental pension charge, and increased reliance on vacancy savings. These budgetary maneuvers reflect actions to begin "right sizing" the organization. Along with the Five-Year Forecast, these metrics also indicate the deteriorating financial capacity of the County's General Fund and the need to continue "right-sizing" expenditure to align with current revenues. However, many of the less disruptive budgetary tools have already been utilized, meaning that further right sizing will require reductions in both vacant and filled positions.

On January 27, the Board approved the following staff recommendations:

• Implementation of budget reductions over three years to address the County's structural deficit, including an initial reduction target of $15 million in 2026-27.
• Setting initial reduction targets with the assumption of no new revenues, while continuing to develop strategies and timelines for revenue enhancement.
• Adjust reduction targets in future years should new revenues materialize.

Following the January 27, 2026, Board meeting, staff released the 2026-27 Budget Instructions to County departments, which included direction to departments to identify budget reduction options equal to 15% of their 2025-26 net county cost. These departmental reduction targets were intended to exceed the $15 million reduction target approved by the Board in order to provide the Board flexibility in evaluating different reduction scenarios.

Departmental budget requests were subsequently received by DFS on February 28.  These budget requests reflected an initial base budget gap of $23.5 million, approximately $3.4 million less than the base budget gap projected in the Five-Year Forecast. However, as staff analyzed the budget submissions and had discussions with departments, it became clear that the structural deficit within the Health and Human Services Agency had reached a critical point and required immediate attention.

HHSA Structural Deficit
In addition to the base budget request for General Fund support, the Health and Human Services Agency included a request for an additional $11.7 million in General Fund support to maintain status quo service levels within the department due to structural funding gaps within multiple HHSA programs.

As HHSA has presented to the Board previously, declining state and federal revenues (such as Title IV-E, CalWORKs Single Allocation, Medi-Cal, and CalWORKs Housing Support Program) and expenditures outpacing the limited growth in many of the Agency's Realignment funding streams resulted in structural deficits in multiple HHSA revenue sources including:

• 1991 Public Health Realignment - $1,536,959
• 1991 Mental Health Realignment - $1,040,261 
• 2011 Behavioral Health Realignment - $726,554
• Intergovernmental Transfer Funds - $482,324

The January release of the Governor's proposed budget, in tandem with ongoing federal challenges to multiple HHSA funding streams, has underscored many of the fiscal issues HHSA is currently facing. The department intends to utilize the last available fund balances in all four of these funding sources in the 2026-27 budget. Further, many of these deficits are projected to continue into future fiscal years, requiring either additional General Fund support or additional non-General Fund reductions within the Agency which will likely reduce current service levels.

The additional $11.7 million needed by HHSA to maintain status quo operations was not included in the General Fund Five-Year Forecast and therefore reflected a new fiscal challenge beyond what was anticipated in the budget outlook presentations in January 2026.  In order to mitigate the need for additional General Fund support, HHSA proposed an additional $9,037,800 in non-General Fund reductions (above and beyond the 15% General Fund reduction target).

After the 2026-27 Recommended Budget was finalized, staff became aware that the Governor’s May Revise provided $228.8 million to counties in one-time funding for HR 1 implementation.  Yolo County’s projected funding augmentation for Medi-Cal administration is $1.29 million. This funding will allow HHSA to provide a longer off ramp for non-General Fund reductions, though additional future actions will still be needed to continue addressing the department’s structural deficits. The department has proposed use of approximately $928,000 of these funds to halt six proposed workforce reductions in the Service Center branch, outlined below:

 

Classification	FTE
Employment & Social Services Program Supervisor	2.0
Associate Administrative Services Analyst	1.0
Administrative Services Analyst	2.0
Senior Administrative Services Analyst	1.0

These position reductions have been removed from the Position Resolution and 2026-27 Proposed Position Changes table. However, the budget figures as reflected in the Budget Book and the Budget Resolution in Attachment F continue to reflect the elimination of these positions. As such, Board action will be required to amend the budget to adjust revenues and appropriations associated with these positions. This action is reflected in Recommended Action B.  

Departmental 2026-27 Budget Reductions
Staff returned to the Board on April 28 and May 5 to present both the General Fund and HHSA Non-General Fund reductions to the Board. While departments submitted a total of $20.9 million in General Fund reduction options, staff determined that approximately $7.1 million required further analysis and should not be considered for implementation in 2026-27. As a result, a total of $13.7 million in General Fund reduction options were presented to the Board for consideration, along with the $9.0 million in HHSA Non-General Fund reduction options.

Following extensive discourse through those two Board meetings, $530,794 in General Fund reductions and $129,780 in HHSA Non-General Fund reductions were removed from consideration. Additionally, the Board identified the need for $350,000 in funding to be set aside in order to address potential County needs stemming from the Oakdale Fire incident. The County Administrator also removed an additional $689,000 in reduction options related to critical Support System departments.

In total, General Fund reductions included in the Recommended Budget total $12.5 million, while HHSA Non-General Fund reductions total $8.9 million.  Please note, these amounts do not include any adjustments as a result of the May Revise. Categorically, these reductions are reflected in the table below:
 

Reduction Category	Reduction Amount
Reduction of Vacant Positions	$12,903,997
Reduction of Filled Positions	$4,152,618
Reduction/Elimination of Contracts	$2,005,547
Reduction of Services and Supplies	$967,788
Adjustments in Salary Allocations	$880,708
Reduction/Elimination of Extra Help	$862,433
Revenue Enhancements	$621,850
Reduction in Overtime	$247,720
Salary Savings	$239,816
Other Reductions	$221,106
Use of Fund Balance	$85,327
Total	$23,198,909
Less HHSA Admin Allocation	($1,750,564)
Revised Total	$21,438,345

Information regarding General Fund reductions is provided in Attachment G.  Information regarding HHSA Non-General Fund reduction is provided in Attachment H.  Departmental information as pertains to all submitted reduction options and their impacts, as submitted by departments, without modification, in February is provided in Attachment I.

General Reserve
Staff are recommending the use of $3,131,674 in the County’s General Reserve to assist in balancing the Recommended Budget. Per the County’s policy on Fund Balances and Reserves, the purpose of this reserve is to protect the County’s essential services from the potential impacts of unanticipated events and circumstances not occurring during the normal course of operations.  Examples of such events include, but are not limited to:
 

• Severe economic downturn such as when the National Bureau of Economic Research declares a recession;
• Severe funding reductions from funding agencies necessitating significant decreases in essential health and safety services even after other mitigating options have been implemented;
• Severe state budget impact necessitating significant decreases in essential health and safety services even after other mitigating options have been implemented;
• Disasters resulting in a declared state of emergency by either or both the Governor and the President requiring significant expenditure of local resources.

Use of the General Reserve further underscores the County’s fiscal situation as it works to address its ongoing structural deficit.  Staff’s recommendation to use these funds reflects the lack of remaining funding options to continue core operations. Utilization of these funds should be taken extremely seriously and signifies the need for significant restructuring of the organization in the coming fiscal years in order to align ongoing revenues and expenditures.

Following utilization of the recommended $3.1 million of General Reserve funds, a balance of $20,819,180 will remain available.  This represents approximately 7% of General and Public Safety expenditures.

Pension Trust
The projected balance of the Pension Trust as of June 30, 2026, is $26 million.  In order to balance the Recommended Budget, staff are recommending that approximately $8.5 million of the Pension Trust be used.  Of this amount, $4.0 million has been used to balance the General Fund.  The remaining balance will be returned to the funds from where it originated during the Adopted Budget process.  Staff acknowledge this will provide a one-time infusion of funding to other funds, including Health and Human Services.  However, as notated later in this staff report, there are a series of anticipated cost increases and additional revenue reductions that will need to be addressed during the Adopted Budget process that will not allow for this funding to mitigate any identified budget reductions.  Following this action, the balance of the Pension Trust will be $17,558,095.

Chula Vista Earnings
The Chula Vista fund was established in 2021 to accumulate additional property tax revenues as a result of changes in the way residual tax increment revenues are distributed to taxing agencies in the wake of the Chula Vista v. Sandoval court case. This fund receives revenue of approximately $2 million per year, but this funding stream is temporary and will end once the former redevelopment agencies officially dissolve beginning in 2035. Per Board resolution, the Chula Vista fund is to be used only for:

• Reserve accumulation
• Reduction in long-term liabilities to best position the County to weather the future revenue reductions from the wind-down of redevelopment agencies, or
• Protect the County’s essential services from potential unanticipated events and circumstances not occurring in the normal course of operations.

Staff recommend use of $3,376,000 in available Chula Vista funds to assist in balancing the FY 2026-27 Recommended budget in order to avoid further reductions in essential County services. As a reminder, this fund currently replenishes approximately $2 million annually.

Policy Reserves
In accordance with the County Strategic Plan and Long Term Financial Plan, financial reserves are occasionally established to accumulate sufficient assets to pay known future liabilities or expenditures associated with known events which be estimated with a reasonable degree of certainty.  In a prior fiscal year, General Funds were appropriated as an Audit Disallowance and Liability Reserve to be available should they be required for the County to cover unanticipated future claims losses or financial obligations.
 
Staff recommending the use of two smaller reserves in order to assist in balancing the FY2026-27 Recommended Budget:
 

Reserve	Balance	Proposed Use	Remaining Balance
Audit Disallowance	$1,363,313	$1,363,313	$0
Liability Reserve	$600,000	$600,000	$0

Other One-Time Solutions
Other one-time solutions were needed to balance the budget.  Several of these other funding solutions are mentioned later in the staff report. However, the following solutions were also implemented:
 

Solution	Balance	Proposed Use
Unemployment Internal Service Fund	$610,903	$610,903
Cannabis Tax	$460,000	$460,000
Pomona Fund	$225,000	$225,000
Local Innovation Subaccount Fund Balance	$210,854	$210,854

Budget Overview
The FY2026-27 Recommended Budget is balanced, meets State appropriation requirements, and aligns with the Board of Supervisors adopted financial policies. The County's net operating budget for FY2026-27 is $732.9 million, with a capital improvement budget of $26.9 million. The budget is comprised of multiple departments that are funded by numerous funds, including the General Fund, Public Safety Fund, Enterprise funds, and Special Revenue funds, among others. The table below provides a summary of the FY2026-27 Recommended Budget. The amounts exclude Intrafund transfers.

 

	2024-25	2025-26	2026-27
	Actual	Adopted	Recommended
Net Operating Budget	$619,539,776	$738,418,763	$ 732,952,676
Capital Improvement Budget	$10,085,399	$36,924,049	$26,909,184
Total County Budget	$629,625,175	$775,342,812	$759,861,860
Fund Highlights
General Fund*	$91,407,201	$114,625,798	$112,685,489
Road/Transportation Fund	$25,959,035	$48,517,675	$59,822,558
Public Safety Departments	$87,049,281	$96,984,574	$102,171,425
Health & Human Services**	$245,276,952	$262,396,666	$250,821,527

General purpose revenues are projected to increase approximately 6.62% over FY2025-26 Adopted Budget and approximately 7.1% over FY24-25 actual revenues.  Revenues are projected using a variety of sources, including data from HdL, the County’s consultant on General Sales Tax and Proposition 172 revenues, careful review of the Governor’s budget on Realignment, and collaboration with the Assessor’s Office regarding Property Tax Revenues. Projected growth in property tax revenues, sales tax, and document transfer taxes may be adjusted at adopted budget as underlying data and trends are carefully monitored month-to-month. Below is a table showing the key sources, including general purpose revenue, Prop 172, and Realignment comparison:

 

	2024-25  Actuals	2025-26   Adopted	2026-27  Recommended
General Purpose Revenue	$109,837,372	$110,330,668	$117,640,243
Prop 172 Public Safety	$27,749,788	$28,509,570	$29,024,403
Realignment 2011 Public Safety	$20,605,852	$21,122,095	$22,396,789
Realignment 2011 HHSA	$22,215,647	$23,164,888	$24,815,250
Realignment 1991 HHSA	$41,775,998	$39,643,545	$44,365,884

In total, the 2026-27 Recommended Budget includes a net reduction of 151.0 full-time equivalent (FTE) positions.  There are 124 vacant positions recommended for elimination.

The 26 filled positions identified for workforce reduction were presented to the Board on April 28 and May 5.  Some positions have been removed as alternative means of funding were identified, or the positions have subsequently become vacant.  Only one position, the Director of Public Health Nursing, is recommended to be unfunded, but not eliminated at this time.

If approved by the Board, these changes would reduce the County’s authorized full-time equivalent position count from 1,801.825 to 1650.825, a reduction of 8.38% percent.

The table in Attachment M reflects the details for position changes that are included in the FY2026-27 Recommended Budget. Below is a summary table.  This table includes anticipated changes to positions based upon the May Revise.
 

2026-27 Recommended Position Changes
Filled Positions Recommended for Elimination
Department	Position	FTE	Funding Source
ACE	Office Support Specialist	(1.0)	General Fund
DCS	Permit Counter Technician II	(1.0)	Building Permit Fees
HHSA	Administrative Services Analyst	(1.0)	General Fund
HHSA	Senior Administrative Services Analyst	(1.0)	General Fund
HHSA	Office Support Specialist	(1.0)	General Fund
HHSA	Child Welfare Worker I	(1.0)	State/Federal/Realignment
HHSA	Departmental Communications Coordinator	(1.0)	State/Federal/Realignment
HHSA	Employment Services Specialist I	(1.0)	State/Federal/Realignment
HHSA	Employment Services Specialist II	(3.0)	State/Federal/Realignment
HHSA	HHSA Fleet Attendant II	(1.0)	State/Federal/Realignment
HHSA	HHSA Support Services Supervisor	(2.0)	State/Federal/Realignment
HHSA	Intensive Case Manager I	(1.0)	State/Federal/Realignment
HHSA	Administrative Clerk II (Limited Term)	(1.0)	State/Federal/Realignment
HHSA	Office Support Specialist	(4.0)	State/Federal/Realignment
HHSA	Social Worker Practitioner (APS)	(1.0)	State/Federal/Realignment
HHSA	Social Services Assistant CWS	(5.0)	State/Federal/Realignment
	Subtotal	(26.0)
Vacant Positions Recommended for Elimination
Department	Position	FTE	Funding Source
DCS	Chief Assistant Director of Community Services	(1.0)	GF
DCS	Permit Counter Technician II	(1.0)	Building Permit Fees
DCS	Solid Waste Attendant (Limited-term)	(1.0)	IWM Fees
RCSA	Administrative Clerk II	(1.0)	State/Federal
RCSA	Child Support Assistant	(2.0)	State/Federal
RCSA	Child Support Specialist II	(4.0)	State/Federal
RCSA	Office Support Specialist	(1.0)	State/Federal
DA	Administrative Services Analyst	(1.0)	GF/Prop 172
DA	Case Preparation Specialist	(1.0)	GF/Prop 172
DA	Office Support Specialist	(1.0)	GF/Prop 172
DA	Crime and Intelligence Analyst (Limited-term)	(1.0)	Federal Grant
DA	Deputy District Attorney V	(1.0)	GF/Prop 172
DA	District Attorney Enforcement Officer	(1.0)	GF/Prop 172
DA	District Attorney Investigator II	(2.0)	GF/Prop 172
DA	Innovation Technician	(1.0)	GF/Prop 172
DA	Paralegal (Limited-term)	(1.0)	Prop 47
DA	Senior Deputy Probation Officer	(1.0)	GF/Prop 172
Probation	Administrative Clerk II	(1.0)	GF/Prop 172
Probation	Deputy Probation Officer II	(2.0)	GF/Prop 172
Probation	Deputy Probation Officer II	(2.0)	SB129/Court Funded PreTrial
Probation	Deputy Probation Officer II	(1.0)	JJCPA
Probation	Deputy Probation Officer II	(4.0)	CCP
Probation	Deputy Probation Officer II	(1.0)	YOBG
Probation	Legal Secretary II	(1.0)	GF/Prop 172
Probation	Supervising Legal Secretary	(1.0)	GF/Prop 172
Public Defender	Legal Process Clerk IV  (Limited-term)	(1.0)	GF
Sheriff	Correctional Officer II	(15.0)	GF/Prop 172
Sheriff	Deputy Sheriff	(3.0)	GF/Prop 172
Sheriff	Lieutenant	(1.0)	GF/Prop 172
Sheriff	Sergeant	(1.0)	GF/Prop 172
Agriculture	Agricultural and Standards Technician II	(1.0)	GF
Agriculture	Office Support Specialist	(1.0)	GF
ACE	Assessor Clerk Recorder Specialist II	(1.0)	GF
ACE	Clerk Recorder Assessor Program Manager	(1.0)	GF
CAO	Principal Management Analyst (Limited-term)	(1.0)	GF
DFS	Accountant III	(1.0)	GF
DFS	Auditor II	(1.0)	GF
DFS	Auditor III	(1.0)	GF
DFS	Property Tax Supervisor	(1.0)	GF
DFS	Senior Accounting Technician	(1.0)	GF
GSD	Procurement Contract Services Specialist	(1.0)	GF
GSD	Building Craftsmechanic III	(1.0)	GF
GSD	Lead Building Craftsmechanic	(1.0)	GF
GSD	Manager of Procurement	(1.0)	GF
GSD	Project Coordinator	(1.0)	GF
GSD	Projects Division Manager	(1.0)	GF
GSD	Procurement and Contract Services Officer (Limited-term)	(1.0)	GF
HHSA	Behavioral Health Case Manager (Limited-term)	(1.0)	GF
HHSA	Clinician II	(1.0)	GF
HHSA	Deputy Branch Director Health and Human Services	(1.0)	GF
HHSA	Psychiatric Health Specialist II	(1.0)	GF
HHSA	Senior Administrative Services Analyst	(1.0)	GF
HHSA	Accountant II	(1.0)	State/Federal/Realignment
HHSA	Administrative Services Analyst	(3.0)	State/Federal/Realignment
HHSA	Deputy Branch Director Health and Human Services	(1.0)	State/Federal/Realignment
HHSA	Employment Services Specialist II	(2.0)	State/Federal/Realignment
HHSA	Employment Services Specialist III	(2.0)	State/Federal/Realignment
HHSA	Fiscal Administrative Officer	(1.0)	State/Federal/Realignment
HHSA	Health & Human Services Manager II	(1.0)	State/Federal/Realignment
HHSA	Office Support Specialist	(3.0)	State/Federal/Realignment
HHSA	Public Assistant Specialist II	(3.0)	State/Federal/Realignment
HHSA	Senior Administrative Services Analyst	(2.0)	State/Federal/Realignment
HHSA	Service Centers Administrative Specialist	(2.0)	State/Federal/Realignment
HHSA	Social Services Assistant	(4.0)	State/Federal/Realignment
HHSA	Social Worker Practitioner	(8.0)	State/Federal/Realignment
HHSA	Social Worker Supervisor II (IHSS)	(1.0)	State/Federal/Realignment
HHSA	Welfare Fraud Investigator II	(1.0)	State/Federal/Realignment
HHSA	Outreach Specialist II	(2.0)	MHSA
HHSA	Outreach Specialist II	(2.0)	State/Federal/Realignment
HHSA	Diversity Equity and Inclusion Coordinator	(1.0)	MHSA
ITSD	Database Administrator	(1.0)	ITSD Fees
ITSD	Enterprise Resource Planning Analyst II	(1.0)	ITSD Fees
ITSD	Supervising Telecommunications Specialist	(1.0)	ITSD Fees
ITSD	Systems Software Specialist III	(1.0)	ITSD Fees
ITSD	Technical Support Specialist III	(2.0)	ITSD Fees
	Subtotal	(124.0)
Positions Recommended for Unfunding
Department	Position	FTE	Funding Source
HHSA	Director of Public Health Nursing	(1.0)	Realignment
	Subtotal	(1.0)
	Net Position Requests	(151.0)
Reallocations
Department	Position	FTE	Funding Source
ITSD	Reallocate an Information Technology Manager County Info Security Officer to a Network Systems Specialist III	1.0	ITSD Fees
ITSD	Reallocate Programmer Analyst IV (C) to Network System Specialist III	1.0	ITSD Fees
Sheriff	Reallocate a HHSA Program Coordinator to a Senior Administrative Services Analyst	1.0	GF-Jail Medical
ACE	Reallocate an Assessor Clerk Recorder Assistant II to a Vital Statistics Technician	1.0	GF
	Total Reallocations	4.00

Strategic Plan
On May 7, 2024, the Board approved the 2024-2028 Strategic Plan and established six (6) pillars for the organization. The FY2026-27 budget includes resources designed to further advance County goals established under each pillar. The following table highlights a few of these goals.

Goals Targeted in FY2026-27 Recommended Budget
 

Pillar	County Goals
Thriving Residents	Reduce flood risk to rural communities by collaborating, conducting studies, and advocating for conjunctive use projects that reduce flood risk to infrastructure and ensure groundwater recharge. Update current Animal Service facility and grounds to provide specific improvements, create a welcoming and safe space for the community to come for redemptions, adoptions or surrender services.
Collaborative Communities	Assist persons with mental health and substance use disorders to get the help they need. Expand community engagement successes.
Sustainable Environment	Ensure the effective sustainable management of water resources. Implement the county’s Climate Action and Adaptation Plan through strategic improvements of county infrastructure.
Flourishing Agriculture	Preserve agricultural sustainability on lands subject to conversion to habitat, flood protection and other uses that serve regional or statewide objectives. Collaborate and coordinate with surrounding counties to support pest prevention activities.
Robust Economy	Distribute American Rescue Program funds to provide direct financial relief, enhance economic development, and boost equitable economic recovery for Yolo County residents. Monitor grants, funding streams, and allocations including those within the Infrastructure and Investments and Jobs Act, and the Inflation Reduction Act, and proactively applying to such grant opportunities to best ensure the County receives a fair share of funding to address critical infrastructure and public service needs, particularly in disadvantaged communities. Enhance the County’s financial sustainability.
Operational Excellence	Reinvigorate a spirit of internal operational excellence through inquiry and interdepartmental collaboration. Review project adoption procedures for the Capital Improvement Plan and collaborate with the Board, the CCI and CIC to outline and improved CIP management process. Provide effective legal advocacy in litigation and other contested proceedings.

Department Budget Narratives

The sections below provide an overview of the FY2026-27 Recommended Budget for County departments. The narratives include discussion about the adjustments included to balance the budget, requested augmentations, new grants and programs, as well as highlights of significant budget changes.

Health and Human Services

Health and Human Services Agency (HHSA): Net County Cost: $14,400,216
The Health and Human Services Agency FY2026-27 Recommended Budget includes a net county cost of $14,400,216 which is a decrease of $3.15 million when compared to the FY2025-26 Adopted Budget.  The Health and Human Services Agency Recommended Budget includes both general fund and non-general fund reductions including reductions to personnel, program operations, and outside contracts in each of their respective branches in order to mitigate the need for additional County Support.  Additionally, this budget works to address the structural deficit in the department, the policy changes associated with HR1, other funding shortfalls and is partially offset by the move of the Jail Medical program to the Sheriff’s Office as described below. 

Child, Youth and Family
The Child, Youth, and Family (CYF) branch has a net county cost of $1,952,156 which is an increase of $1,556,201 from the prior fiscal year.  This increase in net county cost is primarily attributed to reductions in Federal Public Assistance payments, reductions in Federal Child Welfare and Adoptions allocations, and reductions in State funding which includes the Mental Health Student Services Act which ended in FY2025-26.  Additional notable revenue reductions include a net reduction in Realignment dollars of $1.3 million that are partially offset by increases to projected Medi-Cal reimbursements of $1.8 million as well as increased State and Public Health IGT revenues.

Expenditures in the CYF branch are also anticipated to see a decrease of $2.8 million in FY2026-27.  The majority of these reductions are attributed to Salary and Benefit savings of $1.36 million due to a reduction in overtime expenses as well as staffing reductions of 22 FTE that are primarily funded by 1991/2011 Realignment and Title IV-E revenues.  Additional expenditure decreases in Services and Supplies include reductions associated with internal charges, such as IT fees and rents and leases, as well as accounts such as training and transportation and travel.  Professional services in CYF are projected to have a net decrease due to agreements with the Child Abuse Prevention- Crisis Nursery Contract, Yolo County Children’s Alliance, EDAPT/First Episode Psychosis Program, the Children’s Home Society of California Emergency Child Care Bridge program, and Northwoods Consulting Partners being eliminated, reduced or concluding. 

CYF has two augmentation requests totaling $267,070.  These requests are for a planned promotion in the unit as well as an additional $260,000 to increase the agreement with Victor Community Center. Both of these requests have no general fund impact as they will be funded with Juvenile Mental Health Services revenues and BHSA Full-Service Partnership funding.  Staff recommend both requests for approval.

Public Health
The Public Health branch of HHSA does not have a net county cost in the FY2026-27 Recommended Budget which is a decrease of $6.4 million when compared to the FY2025-26 Recommended Budget. The need for general fund in the unit has been minimized by many of the departmental reductions including the removal of the Jail Medical program and associated expenses as the program is expected to move to the Sheriff’s department. 

Revenues in the unit are being reduced by approximately $7.5 million, however this is mostly due to the removal of the general fund transfer in FY2025-26 that is no longer occurring ($6,431,094).  Additionally, State revenues are also projected to decrease approximately $900,000 with the majority of the decrease being tied to MHSA revenues.  Partially offsetting the revenue reductions in the unit are increases to 1991 Public Health Realignment funds, Maternal, Child, and Adolescent Health and California Home Visiting program funds. 

Expenditures in Public Health are projected to decrease $7.5 million. This is primarily due to the removal of Jail Medical along with reductions to other Professional Service agreements including lower projected Maddy funds, reductions in IT and training services, the unfunding of the Director of Public Health Nursing position, and elimination of a vacant Senior Administrative Analyst in the Communicable Disease Infection Control program.  General Fund reductions in Public Health include reductions in the Public Heath In All Policy and Health Equity Program which includes elimination of filled positions including a Senior Administrative Analyst, an Administrative Services Analyst, an Office Support Specialist and a vacant Senior Administrative Analyst.

Other notable budget reductions include deletion of the following positions: vacant HHS Program Coordinator position, 2 vacant regular Outreach Specialist II, a vacant limited term Outreach Specialist II, DEI Coordinator position, and deletion of an additional Outreach Specialist II that occurred in FY2025-26.

The Public Health branch has augmentation requests in the unit that include planned promotions and contracts adjustments.  The requests outlined below have identified non-general fund funding sources for these requests and staff recommend these items for approval. 
Promotions for various positions that are funded by restricted funding sources.

• Request to add $7,500 to reactivate HHSA’s contract with the City of Davis for the Emergency Medical Dispatch (EMD) program to dispatch emergency services for those calling 911.  This contract is to be funded with Emergency Medical Services funds.
• Request to increase the contract with the Yolo County Children’s Alliance by $6,579. Funding for this agreement includes the California Home Visiting Program’s SGF-Evidence Based Home Visiting and the Maternal, Infant, and Early Childhood Home Visiting programs.

Service Centers
Service Centers has a net county cost of $3,919,342 in the FY2026-27 Recommended Budget which is an increase of $1,704,654 when compared to the FY2025-26 Adopted Budget.  The need for additional general fund support is a direct result of the impacts of HR1, which has reduced the level of federal funding and increases the burden on states and counties.    Though federal revenues are anticipated to see a net decrease of $7.1 million, state revenues are projected to increase $3.9 million as a portion of this is attributed to aligning the budget to the projected amount of the Cal Works Single Allocation for FY2026-27.  Additional notable changes include reductions in miscellaneous revenues due to multi-year grants that are carried forward from year to year.  These grants include Regional Equity and Recovery Partnership grant (RERP), STEP, and America’s Job Center of California Vocational Rehabilitation Grant.

Expenditures in the Service Center branch are approximately $1.8 million lower than in the FY2025-26 Adopted Budget.  This decrease is due to Salary and Benefit decreases as a result of departmental reductions that include the closure of the Winter’s office and elimination of positions, both filled and vacant, in the branch.  Additional reductions include decreases in Services and Supplies that include reductions to the VITA contract with YCCA and the Eat Well contract with the Yolo Food Bank, the branch’s training, postage, minor equipment, transportation and travel budgets along with savings due to removal of capital expenses related to the Pacifico remodeling project resulting in projected savings of $1 million.  

The Service Centers submitted augmentations, that staff has recommended for approval, that include promotions for specific classifications within the unit and updates to contracts with Mutual Housing California and WIOA Hearings Officers Services.  The planned promotions have their own funding sources with the exception of the Public Assistance Specialists that includes a general fund ask of $3,582 to assist in the funding of these promotions.  Additional details pertaining to the contract increases are described below. 

• Request to increase contract with Mutual Housing California by $14,736 due to an anticipated rent increase.  This request is funded by the CalWorks Housing Support program.
• Request to increase contract for WIOA Hearings Officers Services.  The department is anticipating combination of two existing agreements resulting in a net increase of $10,000.  This is essential to meet Federal requirements to provide timely and adequate services. Funding for this change is provided by Federal WIOA revenues. 

Client Aid
The Client Aid division has a net county cost of $3,565,511 in the FY2026-27 Recommended Budget which is the same net county cost amount in the FY2025-26 Adopted Budget.  It is noteworthy that the net county cost in this unit is used to fund Cal Works Assistance and IHSS Maintenance of Effort costs.

The expenditure reductions in the unit are primarily attributed to a decrease in the support and care of persons accounts due to the reduction in caseloads in the unit of approximately $1.3 million.  Along with the decreased expenditures are reductions in revenues that are attributed to reductions in payments to families and reduced Cal Works revenues resulting in a net decrease of $2,103,000.  Partially offsetting these reduced revenues are increases to both State and Federal Foster Care revenues of $662,000.

Adult and Aging
The Adult and Aging branch of HHSA has a net county cost in the FY2026-27 Recommended Budget of $4,081,220 which is a decrease of $861,653 compared to the FY2025-26 Adopted Budget.  Revenues in the branch are expected to increase as a result of increases in Medi-Cal revenues, Projects for Assistance in Transitions for Homelessness grant, and Mental Health Realignment revenues.  These increases are partially offset by reductions in state revenues due to the budgeting of multi-year grants where available funds are less than in previous years.  These grants include the Behavioral Bridge Housing Grant, Homeless and Housing Incentive Program grant, Homeless Housing, Assistance, and Prevention Program, the Justice Assistance Grant and the Care Act Grant. 

Expenditures in Adult and Aging are increasing $1.89 million compared to the FY2025-26 Adopted Budget.  This is primarily due to merits, cost of living adjustments, and a reduction to the budgeted salary savings in the unit, as well as increased Workers Compensation costs of $413,000.  Partially offsetting these increased expenses are reductions in the Adult and Aging Branch’s Professional Services agreements of approximately $824,000 due to certain agreements being reduced or removed.  Lastly, a vacant Outreach Specialist II was removed in FY2025-26 due to reduction in funding resulting in anticipated savings of $158,000.  
 
Additional reductions contributing to the overall changes in the branch include reductions to Behavioral Health Homeless Services overhead as well as reductions in Adult Inpatient Mental Health that include the elimination of 4 vacant positions.  Non-general fund reductions in the unit include reductions to the professional services costs associated with Adult Inpatient Hospitalizations, the Locum Tenens contract, and reductions of 5 positions, 1 of which is currently filled.

The Adult and Aging branch has augmentation requests for promotions and contract increases as outlined below.  These requests have their own funding sources with no general fund impact and are recommended for approval.

• 3 Promotions from Adult Services Worker I to Adult Services Worker II.  These requested promotions are funded by State Public Assistance and Health Administration revenues.
• 5 promotions for Clinician I to Clinician II.  These requests are funded by Medi-Cal and BHSA revenues.
• One additional promotion from Associate Administrative Services Analyst to Administrative Services Analyst that is funded by the State Housing and Disability Advocacy program.
• Request to increase the contract for Behavioral Health Crisis Response services by $200,000.  Funding will be provided by the Behavioral Health Services Act-General System development once the BHSA plan is approved.

Administration
The Recommended Budget for the Administration Branch includes a total budget of $98 million and has no net county cost.  The division consists of administration staff as well as Realignment revenues that are received and then transferred to other divisions for operations as needed. 

The Administration unit includes reductions in Salaries and Benefits expenses as a result of submitted branch reductions that include the elimination of both vacant and filled positions.  These positions include an HHSA Admin Deputy Director, a Fiscal Administrative Officer and a Senior Administrative Analyst. Other cost savings measures are also included in the reductions, such as centralizing the HHSA Fleet with Community Services and changes to IT dedicated staff at HHSA.  This position is recommended for approval as it funded with BHSA and Opioids Settlement Funds and was approved, in concept, by the Board on March 3, 2026.

Community Services

Community Services: Net County Cost $2,831,326
The Community Services FY2026-27 Recommended Budget includes total expenditures of over $111 million with the majority in Roads and Integrated Waste Management. The recommended Net County Cost is $2.8 million, a reduction of approximately $106,000 from the FY2025-26 Adopted Budget. This decrease is the result of a myriad of changes within each division. Details about the changes are included below.
 
Building and Permitting
Building and Permitting is an Enterprise Fund, however, it is projecting to have a net county cost of $137,000 to balance the division. The net county cost is due to reduced revenue of $162,000, primarily driven by reductions in permitting revenue and the removal of American Rescue Plan revenue. The division is working on additional changes to its fee structure in order to bring the fund back into balance and eliminate any net county cost, and proposed fee adjustments will be included as part of the 2026-27 Master Fee update on June 23, 2026. Salary and benefits costs will also be decreasing by $34,000 due to the elimination of one vacant and one filled Permit Counter Technician which is being partially offset by the removal of a salary savings factor and standard COLA and merit increases.

Planning
The Planning Division's Recommended budget has a net county cost of $1.1 million which represents a $225,000 reduction from FY2025-26 Adopted Budget. This reduction is primarily driven by the elimination of the Chief Assistant Director of Community Services position which will be vacant at the start of the fiscal year due to staff retirement. The department will also be promoting a Principal Planner to a Planning Manager to backfill some of the responsibilities left in the absence of the Chief Assistant Director. The savings from the position elimination are being partially offset by reductions in revenue of $173,000 due to downward pressures on Zoning Permit revenue and departmental charges for services.

Animal Control Services
The Animal Services division has a net county cost of $1.46 million, which represents a $375,000 increase compared to the FY2025-26 Adopted Budget. Both revenue and expenses are decreasing primarily due to the removal of $585,000 in funding and related expenses for capital projects. Revenue reductions are being partially offset by increased JPA member charges ($159,000). The expense reduction is being offset by a $456,000 increase in other expenses including salary and benefits ($177,000), liability insurance ($98,000), and departmental supplies and services ($185,000).  Staff acknowledge that contracts for Animal Control Services between the County and local jurisdictions expire at the conclusion of the 2025-26 fiscal year providing an opportunity for discussion regarding mitigation of the County’s cost for these services.

Environmental Health (EH)
Environmental Health's Recommended Budget has a net county cost of $111,000, a decrease of approximately $38,000 from the FY2025-26 Adopted Budget. Revenues are projected to increase as a result of recent Board action to update fee schedules during the December 2025 Master Fee process. Additionally, there are reductions in internal charges, and operational reductions to further limit net county costs for this division. These decreases are partially offset by increased salary and benefit costs from the removal of salary savings, and standard COLA and merit adjustments.

Cannabis
The Recommended Budget for the Cannabis Program is seeing small reductions in both revenue and expenses and has no net county cost. The division is projecting to use approximately $621,000 in fund balance. The division has recently lost some cultivators, which is resulting in decreased revenue generation ($69,000). Additionally, a salary savings factor of $161,000 has been added for the Cannabis Inspector II as the division does not intend to fill the position.

Integrated Waste Management (IWM)
Integrated Waste Management has a total recommended budget of $45.4 million.  The division has no net county cost. The division is anticipating a $1 million increase to landfill fee revenue due to adjustments to the master fee schedule that took place at the December 2025 updated and are proposed for the June 2026 update, and a $1.7 million increase to revenue for a long-term loan to fund the building of a new liquid waste pond. Some of the notable projects in the division include the construction of unit H4 and 7J, scale for the self-haul lane, drainage modifications, and the transfer of the methane plant to Redtail Renewable. Total construction costs are anticipated to be $12.7 million.
 
Roads
The Roads and Public Works Division has a Recommended Budget of $45.9 million, with no net county cost. This represents an increase of $10.2 million compared to FY2025-26 Adopted Budget. This division houses capital road projects that are one-time in nature but planned over several years, meaning not all funding will be expended in a given fiscal year and will likely be carried forward until the project is completed.

County Service Areas
The FY2026-27 Recommended Budget for County Service Areas (CSA) totals $6.4 million with no net county cost. This is a decrease of about $7.5 million from the FY2025-26 Adopted Budget. This large drop in total expenses is primarily due to the completion of the North Davis Meadows water project and the Wild Wings arsenic and well construction projects. It is also important to note that the Wild Wings Golf Course has made its final loan payment to the water and sewer fund reducing future appropriations for debt servicing.

General Government
 
Agriculture: Net County Cost $1,728,200
The FY2026-27 Recommended Budget for Agriculture reflects an increase in net county cost of approximately $133,000 from FY2025-26 Adopted Budget. The division is projecting increased revenue of $159,000 primarily due to proposed fee increases related to the budget reduction process. The department is also seeing expenses increase by $283,000, which is the result of increased salary and benefits costs and increased internal charges.

The departmental building and equipment replacement funds are projecting to be fully spent due to the purchase of two vehicles and the completion of the Ag Shop building in FY2025-26. No additional activity is projected for these funds in FY2026-27.

Even though the department is seeing an increase in net county cost, the recommended budget also includes reductions of $239,245, which has reduced the department’s overall impact on the general fund. The primary driver of these reductions is from revenue enhancements related to fee increases as stated above. Additionally, the department will be reducing their extra help budget and fuel and maintenance costs as a result of downsizing their fleet. Staff recommend approval of these reductions.

Assessor/Clerk Recorder/Elections (ACE): Net County Cost $7,702,299
ACE has an anticipated net county cost of $7,702,299 in FY2026-27 which is an increase of $341,567 when compared to the FY2025-26 Adopted Budget.

Assessor
The Assessor’s division is projecting revenues to increase approximately $118,000 in comparison to the FY2025-26 Adopted Budget.  These revenue increases are attributed to higher Property Tax Administration Fee revenues ($142,000) and are partially offset by reductions in State revenues associated with SSCAP grant and in Supplemental Roll Administration Fee revenues. 

Expenditures in the division are also anticipated to see an overall increase of $39,000 due to merits, cost of living adjustments, and a decrease in the division’s salary savings factor resulting in a net Salary and Benefit increase of $181,000. Offsetting these anticipated increases are savings due to the discontinuation of the Just Appraised software, reductions in extra help expenses ($26,000), IT internal charges ($24,400), professional services agreements ($53,000) and expense transfer reimbursements ($78,000).  Additional notable reductions put forth by the department include one quarter of salary savings for the Principal Appraiser vacancy in the unit to achieve savings.

There was one augmentation request for the Assessor’s division that was originally included as part of the division’s base budget for increases in extra help ($36,000). This request has been deferred to the Adopted Budget for consideration.

Elections
Elections is anticipated to have a net county cost of $3,402,293 for FY2026-27 which is an increase of $422,000 compared to the FY2025-26 Adopted Budget.  This is primarily due to the Elections division projecting a decrease of $1.1 million in Election Services revenue primarily due to one time funding from the state related to Proposition 50 being received in FY2025-26.    Current billable elections throughout Yolo County include local city council races and school board races. It is important to note that some of these contests may not end up on the ballot and therefore would not generate revenue due to lack of candidates.

Expenditures in the Elections division are expected to see a decrease of $737,000.  The majority of this expenditure reduction lives within the Services and Supplies major object ($612,000) and is due to significant reductions in election supplies, postage, and printing expenses as the amount needed for the November 2026 election is much less than previous years.  Other notable reductions in the unit include reductions in expenses associated with the Mobile Vote Center, extra Help expenses, IT internal charges, and a reduction in the unit’s expense transfer reimbursements due to lower costs in the department’s Admin Unit.

The Elections division submitted an increase in overtime expenses of $23,250 as part of their base budget.  Staff recommend that this increase be treated as an augmentation request and be reevaluated during the Adopted Budget process for consideration. 

Clerk Recorder
The Clerk Recorder branch is expecting an increase in revenues of $21,600 while expenditures are projected to decrease $442,000.  The Clerk Recorder’s office is also anticipating a decrease in the use of fund balance of approximately $725,000 when compared to the 2025-26 Adopted Budget, resulting in a net county cost in the division of $1,451,747.

Expenditures in the Clerk Recorder division are anticipated to decrease $760,000 in comparison to the FY2025-26 Adopted budget.  These reductions are primarily attributed to departmental Salary and Benefit reductions that include the elimination of a vacant Assessor Clerk Recorder Specialist, expense reductions in Professional Services and Capital Improvement project savings.  These projects, previously funded with the Clerk Recorder’s restricted fund balances, include the final phase of the historic records digitization being completed, removal of Phase 2 of the Map preservation project, and completion of security upgrades and remodels in the Clerk Recorder’s office. Agreements included as part of the Clerk Recorder’s professional service budget are with Tyler Technologies, Civic Plus and Adobe licenses.

ACE Administration
The ACE administration unit is anticipating reductions that are primarily due to Salary and Benefit reductions in the unit.  This is a result of the elimination of a vacant Clerk Recorder Assessor Program Manager and a filled Office Support Specialist position. 

Board of Supervisors: Net County Cost: $3,297,983
The FY2026-27 Recommended Budget for the Board of Supervisors includes a decrease of $279,000 in anticipated Service and supply expenditures, largely related to a $286,000 decrease in General Liability costs. Standard increases to salaries and benefits ($95,000) have also been included.  The budget for the Board of Supervisors also includes continuation of the Community Benefit Fund ($37,500 in total, $7,500 for each Supervisorial district).  This allocation was reduced by 50% beginning in the 2025-26 fiscal year.  As began in the 2025-26 fiscal year, each Supervisor has broad discretion as to how the funds allocated to their individual districts are utilized, so long as they remain within their budget appropriation.   

County Administrator’s Office: Net County Cost $5,179,244
The FY2026-27 Recommended Budget for the County Administrator’s Office includes standard increases to salaries and benefits and base increases for various internal charges such as IT and insurances. The budget does not include any new positions or augmentation requests but does include the re-budgeting and continuation of previously approved grants and projects. Staff recommend elimination of a vacant Associate Management Analyst position (authorized as a Limited Term Principal Management Analyst), along with the assumption of savings from the elimination of either the Deputy or Assistant County Administrator position, which will be determined by the Adopted Budget process.

Other reductive actions taken by the department include elimination of the department’s legislative consulting contract, along with dedicating half of one Administrative Services Analyst in the Climate Sustainability unit to provide analytical support to the Natural Resources program within the General Services Department, which can be funded with gravel fees.  This action is reducing the net county cost within the Climate Sustainability unit by approximately $85,000.

The department submitted one augmentation request, $10,000 related to appropriation for Leave Buyout.  Staff recommend deferring the request to the Adopted Budget.

County Counsel: Net County Cost $3,519,819
The FY2026-27 Recommended Budget for County Counsel has a net county cost of approximately $3.5 million, an increase of $495,000 over prior year’s Adopted Budget. The department is seeing increased revenue of $275,000 due to an anticipated increase in the department’s hourly rate and increased collection activity. The increase in revenue is being offset by increased salary and benefits costs ($368,000) primarily due to negotiated equity increases, and standard COLA’s and merit increases.

The department is also anticipating a sizable Service and Supply increase ($410,000) with regards to the Conflict Defense Panel.  Following indictments related to the Oakdale Incident, it was determined use of the panel was required for at least one of the defendants in the case.  Additional funding for this purpose may be required during the Adopted Budget process. If needed, the department will submit a new augmentation request.

The recommended budget figures above include $387,000 in budget reductions that were submitted by the department. These reductions include revenue enhancement options that were stated above, along with one quarter of salary savings for a vacant Deputy Couty Counsel position and a reduction in contribution of funds to participate in litigation on water and land use matters with other Delta counties. Staff recommend approval of these reductions.

Department of Financial Services (DFS): Net County Cost $3,952,177
The FY2026-27 Recommended Budget includes a decrease in Net County Cost of $164,000 when compared to the 2025-26 Adopted Budget. While revenues within DFS are projected to decrease slightly due to the conclusion of state backfill related to AB1869, which terminated the County’s ability to collect revenue related to criminal fees in 2021 ($114,000), the majority of this reduction is being driven by the elimination of three vacant positions: an Auditor II, Accountant III, and Senior Accounting Technician ($452,000).  These reductions are offsetting standard increases in Salary and Benefits, which would otherwise be expected.

Two additional vacant positions, a Property Tax Supervisor and Auditor III were unfunded and held vacant in the 2025-2026 fiscal year. Staff also recommend elimination of these positions.

The department submitted an augmentation request to double-fill a Revenue Supervisor position for three months.  The current incumbent is anticipated to retire by the conclusion of the 2026-27 fiscal year.  Double filling the position at a cost of approximately $50,000 would allow for a proper onboarding and training period for the individual selected to fill the impending vacancy.  Staff recommend deferring this augmentation to the Adopted Budget process.

General Services: Net County Cost $7,039,786
The General Services FY2026-27 Recommended Budget reflects a $540,000 decrease in net county cost when compared to the FY2025-26 Adopted Budget.  This decrease is due to budget reductions taking place primarily in the Facilities Division. The department is also seeing other notable reductions in Procurement, Airport, and Tuli Mem along with an increase in the Parks division.

Facilities
Facilities has a projected net county cost of $3,860,754 for FY2026-27 which is a decrease of approximately $412,000. The division is seeing approximately $6.3 million reductions in both revenue and expenses. The majority of both of these reductions are driven by the removal of several countywide constructions projects that were being funded with Accumulated Capital Outlay (ACO) funds. Other notable changes to the Facilities division include increased revenue from Charges for Services ($220,000), and increased salary and benefits costs ($107,000) due to changes in salary allocation methodology and standard COLA and merit adjustments. Finally, all but one of the budget reductions in General Services are in the Facilities division, a list of which has been included below.

• Reduce Janitorial Services
• Renegotiate Communicare Lease-West Sacramento
• Increase Facilities Hourly Rate
• Move Capital Projects Staff to ACO
• Eliminate Vacant Position-Building Craftsmechanic

Procurement
The Procurement division has an anticipated net county cost of $800,000 for FY2026-27. Revenues in the division are expected to remain flat while overall expenses are decreasing by $101,000. The decrease in expenses is being driven by the elimination of a vacant Associate Contract Procurement Specialist.

Airport
The Airport’s budget has an anticipated net county cost of $229,000 for FY2026-27 which represents a $70,000 decrease from FY2025-26 Adopted Budget. The division is seeing overall reductions in both revenue and expenses due to the removal of appropriations for the federal runway grant, the completion of the airport well project, and salary savings due to a change in department salary allocation methodology.

The department also submitted an augmentation request for a runway rehabilitation project funded with $1.52 million of state and federal grants, with the remaining $78,000 being a general fund request. Staff are recommending that this request be deferred to the Adopted Budget.

Parks
The Parks division is projecting a FY2026-27 net county cost of $1.8 million, which represents a $137,000 increase from FY2025-26 Adopted Budget. This increased cost is primarily driven by decreases in revenue due to a downward trend in boat launch and campground fees, and the removal of a transfer in from the American Rescue Plan fund. The division is also seeing salary and benefits costs increase by $30,000 due to standard merit increases and COLAs.

The division also submitted augmentation requests for the purchase of a lawn mower and an electrical generator. Staff are recommending that these requests be deferred to the Adopted Budget.

Tuli Mem
Tuli Mem Park and Pool is projecting to have a net county cost of $233,000 which represents a reduction of $89,000. This is primarily due to a reduction in expenses driven by the elimination of a contract with the Esparto Community Services District. The contract is no longer needed due to the services being performed in-house and maintained by Yolo County staff.

Human Resources: Net County Cost $4,071,995
The Human Resources FY2026-27 Recommended Budget is anticipated to have a net county cost of $4,071,995.

Revenues in the Human Resources budget are anticipated to stay consistent with previous years as there is a small projected increase anticipated of $6,300.  Expenditures in the unit also increased approximately $735,000 as a result of increased Salaries and Benefits costs ($384,000) due to merit increases, cost of living adjustments, increased OPEB expenses and removing the salary savings factor that was previously included in the Human Resources budget.  Additionally, Human Resources included an additional expense of ($217,764) for the transfer of a Special Assistant position to the department from the County Administrator’s Office.  It is expected that 90% of this position costs will be billed to Human Resources by the County Administrators Office. Other notable changes include increases to ERP ($32,956), General Liability ($62,279), Connectivity ($6,357), and Communications ($789) internal charges.

The Risk Management division is not anticipated to have a net county cost as all insurance premiums and other risk management expenses are now being billed out to County departments. In prior years costs associated with Property and Fidelity insurance premiums were not billed out but were instead funded solely by the General Fund. This shift to an Internal Service Fund model allows the County to recover a portion of these costs through non-General Fund sources. The Risk Management division’s budget reflects an increase in revenues of approximately $1.48 million.  These increased revenues are attributed to additional revenues from departments for General Liability and Workers Compensation insurance costs as well as the addition of Property and Fidelity insurance collections from departments.  These additional revenues are partially offset by increased expenditures of $653,000 due to the projected increase in General Liability and Workers Compensation Insurance premiums for the County that are paid out of the Risk division.  Other notable items included in the Risk Management budget are reductions in Professional Services of $560,000 due to no longer budgeting for payments to the California Joint Powers Risk Management Authority Excess liability program as the invoices were fulfilled in the previous fiscal year ($586,000). 

Innovation and Technology Services: Net County Cost: $0
The Innovation and Technology Services (ITS) currently does not have a net county cost associated with its FY2026-27 Recommended Budget. 

Innovation and Technology Services
The ITS Division is projecting revenues to increase by approximately $379,000.  The unit is anticipating increases in ERP revenues of $104,000 as well as a projected increase in Department Systems revenue where ITS provides support for department specific programs ($132,000).    Partially offsetting these revenue increases are reductions in Connectivity revenues of $123,000.

Expenditures in the 2026-27 Recommended Budget are expected to see a decrease of $240,000.  This decrease is attributed to factors that include the completion of the Local Agency Technical Assistance Grant ($433,163), the department making significant reductions in their training budgets ($97,000), and reductions in the unit’s janitorial expense ($17,832).  These savings are being partially offset by additional Salary and Benefit expenses of $269,620 due to merits, cost of living adjustments, and increased retirement costs.

Other notable changes in the ITS budget include increases in equipment expenses that are noticeably higher when compared to the previous year.  This is attributed to equipment seeing price increases of 10-16% since last year as well as the need for additional equipment at the Sheriff’s Campus that include network switches, wireless access points, and Uninterruptible Power Supply (UPS) devices.  Lastly, the department is continuing to budget for software subscriptions that have seen small annual increases but are an integral part of departmental operations.

As stated previously, ITS currently carries no net county cost.  However, staff does anticipate a revision to ITS fees to occur between the Recommended and Adopted budgets that could potentially result in fee increases to General Fund departments.  In the interim, staff will continue to evaluate ways to reduce these anticipated fees.  This includes conversations between various special districts and the County regarding billing of fees that have previously been waived for those districts, ITSD fees should be incorporated into those discussions, as the County is no longer in a fiscal position to subsidize non-County operations.

Telecom
The Telecom division is projecting a revenue decrease of approximately $165,000.  This decrease is attributed to a reduction in Telecom work order revenues and a reduction in equipment lease revenues. Expenditures within the division also saw a decrease of approximately $182,000.  This reduction is primarily due to reduced Salary and Benefit expenses in the unit due to the removal of the Supervising Telecommunications Specialist position ($135,000) as well as additional reductions to the division’s training budget ($10,000) and Professional Services accounts ($36,539).  Other notable items in the Telecom budget include funding for Intrado software ($11,500), which tracks the location of County devices, funding for Maverick software and continuing to carry $45,000 for emergency cable repair. 

There were no augmentation requests or departmental reductions as part of the ITS FY2026-27 budget.

Library: Net County Cost $456,000
The Library’s net county cost for FY2026-27 is $456,000 with $264,422 supporting the County Archives and $191,578 in the Yolo County Historical Collection Unit.

County Library
Revenues in the County Library Operations unit are anticipated to increase $1,167,000.  The revenue increases are primarily attributed to the Library’s projected growth in Property tax and Special Tax parcel revenues and includes the use of fund balance of $445,000.  Partially offsetting these revenue increases are decreases in State revenues that are attributed to the English as a Second Language (ESL) grant that will conclude in June 2026 ($113,000).  The department would like to continue ESL classes moving forward and are currently in the process of identifying potential funding sources with an update expected during the Adopted Budget process.

Expenditures are projected to increase approximately $648,000 when compared to the FY2025-26 Adopted Budget.  This is mostly due to a net increase in Salary and Benefits of $624,000 due to the addition of Walnut Park Library operations that includes staffing along with merits and cost of living adjustments.  Partially offsetting these increases are expenditure decreases due to the removal of a previous leave buy out expense, aligning extra help funding to prior actuals and a decrease in the unemployment insurance internal charge.  Additionally, Services and Supplies are anticipating minimal changes overall.  Minor equipment is projected to decrease by $41,000 while still allowing enough for on-going replacement of aging furniture used by the public. Furthermore, cost of utilities, professional contracts, and special department library books have experienced decreases as they are adjusted closer to actual usage.

The Walnut Park Library is anticipated to open in the late Fall of 2026. Five positions were approved during Midyear FY2026 to give ample time for Library to hire personnel. Estimates of costs for the new library branch are added to the department’s budget as augmentations and outlined below. Walnut Park Library’s revenues consist largely of the special tax proceeds from Measure T and a portion from use of fund balance. Other expenditures include extra help, internal charges, building maintenance and improvements, lease equipment, and utilities.

Augmentation requests in the Library operations unit total $876,083.  The three submitted augmentation requests include requests related to the opening of the Walnut Park Library as described above ($801,083), a request for “Discovery Layer” to meet the new ADA Title II Web and Mobile Application Accessibility Rule ($25,000), and funding for the Landscaping project at the Mary L. Stephens Davis Branch Library ($50,000).    These requests are recommended for approval as they do not carry a General Fund ask and are funded with Davis Library Special Tax funds, Library funds, and fund balances.

Records Center
Library Records are projected to see minimal changes as expenditures are projecting a net increase of $1,900. These changes in expenditures are attributed to increased salary allocation costs for the Archives and Records Center Coordinator and Library Assistant in the unit.  Offsetting these expenditure increases are additional Record’s Center box cost revenues of $1,900.  Lastly, no additional reductions were included as part of this unit’s Recommended Budget.

Library Archives
The Library Archives are anticipated to have an increase in net county cost of $37,000 due to merits, cost of living adjustments, and increases in IT Connectivity and ERP internal charges.  No additional reductions were included as a part of the Archives unit.

Yolo County Historical Collection
Yolo County Historical Collection (YCHC) Requested Budget reflects a net county cost of $191,578 which is an increase of $42,000 compared to the FY2025-26 Adopted Budget and is due to growth in Salary and Benefits of the one FTE staff in the unit as well as increases in internal charges such as insurance liability, IT services, and utilities.

Law and Justice

Regional Child Support Agency (RCSA): Net County Cost $0
The RCSA FY2026-27 Recommended Budget is projecting no Net County Cost. Total revenues and expenditures are increasing by $458,000 due to increases in Salary and Benefits, cost plan charges, and utilities, which are offset by additional Federal Revenues. Included as part of RCSA budget is the removal of 8 vacant positions that are tabled below. Moving forward, it’s important to note that the 5-year transition period related to the regionalization of the Colusa, Sutter, and Yolo Child Support agencies is close to completion as the last three employees from Sutter County transitioned to Yolo in December 2025.
 

Regional Child Support Agency Position Eliminations
FTE	Position	Position Status
4.0	Child Support Specialist II	Vacant
1.0	Child Support Assistant	Vacant
1.0	Office Support Specialist	Vacant
1.0	Administrative Clerk	Vacant

District Attorney: Net County Cost $13,674,340
The FY2026-27 Budget for the District Attorney reflects a $477,800 increase in net county cost from the 2025-26 Adopted Budget.  Much of this increase is due to increases in Salaries and Benefits, due to both standard merits increases and cost-of-living-adjustments.   Historically, the department has carried a sizable salary savings factor ($1.1 million in the 2025-26 Adopted Budget).  In lieu of this factor, the Recommended Budget includes elimination of the following vacant positions, at a savings of $1,538,592:
 

Elimination of Vacant Positions
Classification	FTE
District Attorney Enforcement Officer	1
District Attorney Investigator II	2
Deputy District Attorney V	1
Administrative Services Analyst	1
Office Support Specialist	1
Innovation Technician	1
Case Preparation Specialist	1
Total	8

In order to further mitigate the department’s Net County Cost, Extra Help reductions of approximately $550,000 are recommended for approval. These reductions are offsetting both removal of the historical salary savings factor and additional increases to salary and benefit costs that would otherwise be experienced by the department. 

Staff also recommend elimination of two grant-funded positions, a Crime and Intelligence Analyst and Paralegal, as both positions are vacant, and the grants have concluded. Elimination of a previously unfunded position, a Senior Deputy Probation Officer is also recommended for approval. This position has been unfunded for the past two fiscal years as a cost saving measure.

The Byrne Memorial grant program, which historically does not have a Net County Cost, is receiving General Fund support in the Recommended Budget ($65,000) as the federal grant application period was delayed.  The application period is now open, and the department anticipates providing an update with the Adopted Budget.

The District Attorney’s Office also requested $68,995 in funding related to promotions for District Attorneys in its Criminal Prosecution unit, $105,000 in Expert Witness expenses, $13,500 in food for the department’s snack pantry, $177,000 in vacation buyback funding, along with a $127,000 increase to the department’s Extra Help budget. The department also submitted a request for $600,000 to continue its investigation into the Oakdale Incident. Staff do not recommend approval of these requests at this time and would defer them to the Adopted Budget process.  As a reminder, the department received $964,000 in augmentation funding in the 2025-26 Adopted budget, which can be carried forward for future costs related to this investigation.

Staff recommends approval of a small increase in funding for an Extra Help Investigator funded by the Multiple Disciplinary Interview Center ($2,000) and has no impact on the General Fund.

Probation: Net County Cost: $3,927,255
The Probation Department’s FY2026-27 Recommended Budget net county cost represents a $971,000 increase from the prior years adopted budget. This increased cost is primarily the result of decreased revenue and increased expenses in the Adult Services and Juvenile Detention divisions. The department is also instituting a methodological change to their salary allocation that is preserving restricted fund balances. There are other notable changes happening in the Juvenile Probation Services and Community Corrections Partnership divisions.

Adult Services
Adult Services is anticipating a net county cost of $755,878, which represents an increase of $488,000. The division is anticipating the loss or reductions of several revenue sources totaling $333,000. The revenue sources include the loss of backfill funding associated with AB1869, which terminated the County’s ability to collect revenue related to criminal fees in 2021, reduced revenue from SB129 Adult Pre-Trial unit, and SB678 Community Corrections Incentive fund.

The division’s increase in expenses is the result of a salary savings factor being removed ($340,000) and staff assignment changes compared to the previous year. The change in staff assignments has resulted in increased salary allocation costs of $544,000. This division is seeing increased costs despite the removal of two vacant Deputy Probation Officer II positions, and one vacant Office Support Specialist (authorized as a Legal Secretary) position that resulted in a total savings of $452,006.

Juvenile Detention
The Juvenile Detention Unit is projecting a decrease in both revenue and expenses resulting in an increase to net county cost of $313,000 when compared to FY2025-26 Adopted Budget. The primary driver to the changes in this division is the CalAIM grant coming to a close, the result of which is a $729,000 reduction in revenue and a $431,000 reduction in expenses. Other notable changes in the division include increased Prop 172 revenue ($70,000), a return to full work program hours with the General Services Department resulting in a $148,000 in additional revenue, and salary and benefits cost are increasing by $215,000 due to standard COLA and merit increases. Finally, the department is requesting an augmentation to purchase a new vehicle for the Work Program funded with Probation restricted funds. Staff are recommending approval of this request as there is no general fund impact.

Juvenile Probation Services
The Juvenile Probation Services division has a net county cost of $176,000 in the Juvenile Service unit where there has historically been no net county cost. The department submitted a position reduction in this division that would eliminate the general fund ask, but the position reduction was entered into the Adult Unit. This reduction will be corrected at adopted budget, which will shift this general fund ask to the Adult Services Unit.  The increased cost is being partially offset in this unit by increased revenue ($25,000), and a decrease in expenses ($31,000) primarily due to reductions in internal charges and some professional services.

This division also has several non-general fund units that are seeing growth in revenue and reductions in expenses. A main driver of the revenue growth is due to adding in estimated interest earnings on their restricted funds that previously were not budgeted, resulting in an additional $235,000 in revenue. The division has also identified a new revenue stream of $50,000 from Family First Prevention Services. Finally, the division is eliminating 2 vacant Deputy Probation Officer II positions for a total savings of $353,000.

Community Corrections Partnership
The Community Corrections Partnership division has no net county cost; however, it is seeing increased expenses of roughly $388,000. Salary and benefits make up $266,000 of the increase as a result of the removal of a salary savings factor of $1 million. To offset this increase the division is eliminating 4 vacant Depuy Probation Officer positions for a total savings of $706,000. Finally, the division is seeing increases to their contracted services of $137,000 with the Sacramento Office of Education, HHSA Treatment, Yolo Couty Intergovernmental Transfer House, and Co-Responder HHSA/Sheriff.

Public Defender:  Net County Cost $13,179,502
The Public Defender’s FY2026-27 budget reflects a net county cost increase of $1.96 million, which is driven almost exclusively by increases in Salary and Benefit expenses. The budget for the Public Defender's Office includes additional funding for two new Deputy Public Defender IV positions at a General Fund cost of $304,327 each.  These attorneys will be working on cases related to the Oakdale Incident for the foreseeable future.  The budget also includes the refunding of a Paralegal position which was unfunded in the 2025-26 fiscal year.  This position will be providing support to the two new Public Defender positions working on the Oakdale case.

In order to mitigate the increase in net county cost, the department has eliminated a vacant Legal Process Clerk position ($103,447).  The Recommended Budget also continues the partnership between the Public Defender and Probation, with the Probation Department providing special revenue funding for one Mitigation Specialist ($203,169) working on juvenile cases within the Public Defender’s Office.

The department requested multiple augmentations, including four new Deputy Public Defenders, a new Paralegal, a new Mitigation Specialist, a new Admin Clerk II and new Public Defender Investigator for a total cost of $1,398,204.  Staff recommend deferring all augmentation requests to the Adopted budget process.

Sheriff:  Net County Cost $40,964,972
The Sheriff’s FY2026-27 Recommended Budget includes a net county cost of $40.9 million, an increase of $6.88 million from the FY2025-26 Adopted Budget. Importantly, the majority of this increase ($6.22 million) is related to relocation of the administration of the Jail Medical program from the Health and Human Services Agency to the Sheriff’s Office. The remainder of the increase is related to adjustments in Salary and Benefit expenses within the department as a result of both standard merit and equity adjustments, the addition of one Senior Administrative Services Analyst position, along with the elimination of 20 positions throughout the department.

In order to reduce the Sheriff’s Office net county cost, $2 million in augmentations requests are recommended to be deferred to the Adopted Budget. Included in the deferral are multiple vehicle replacements including replacement of a SWAT vehicle, leave buyout related to an anticipated retirement, and a mixed reality use of force training system ($180,000).

In order to further reduce the net county cost, the department submitted extensive departmental reductions, including:
 

Reduction	Amount
Workforce Reduction – 15 Vacant Correctional Officers	$2,466,960
Workforce Reduction – 3 Vacant Deputy Sheriffs	$603,702
Workforce Reduction – Sergeant	$328,030
Workforce Reduction – Lieutenant	$351,615
Service and Supply Reduction – Department Wide	$554,000
Extra Help Reduction	$211,000
Total	$4,515,307

Other cost-saving measures were applied to the department in order to mitigate net county cost including use of COPS Detention ($50,000) and COPS Patrol ($100,000) fund balance to offset the cost of operations in those units Public Safety units and additional CCP funding ($54,500) to fully fund staff working on CCP initiatives.

The General Fund continues to support the Sheriff’s CCP at the amount of $1,000,000 in the 2026-27 Recommended Budget.  This is an increase of $225,000 from the 2025-26 Adopted Budget.  With the CCP’s move to percentage-based budgeting in the 2021-22 fiscal year, the Sheriff’s Department has received 27.5% of CCP of annual revenues to fund operations, however, in recent years, the department has required additional General Fund support as CCP funding is no longer adequate to fund the Sheriff’s CCP operations.  Staff recommend internal analysis within the Sheriff’s Office and the CCP to ensure staffing of the Sheriff’s CCP operation and funding are in alignment for the Adopted Budget process and for future fiscal years.

Staff recommend approval of the purchase of three (3) replacement Tahoe Patrol vehicles, along with outfitting, radios and watchguard for the Capay Patrol Division. The Yocha Dehe Wintun Nation will reimburse these expenses as part of their agreement to provide dedicated patrol services within the valley. Staff further recommend the use of Small and Rural ($2 million), COPS Detention ($500,000) and COPS Patrol ($500,000) in order for the department to continue the process to upgrade and implement a new system to electronically record, track, and store law enforcement data and manage day-to-day jail processes. The Sheriff’s Office has released a Request for Proposals (RFP) and secured a vendor to procure a new Record Management System/Jail Management System (RMS/JMS) solution that fully meets operational and compliance requirements. The department estimates the cost for the new system to be between $2-3 million.  Staff also recommend approval for the rebudgeting of the Mobile Command Center outfitting ($275,000) utilizing Small and Rural funds.

The remaining divisions within the Sheriff's Office will remain status quo until the Adopted Budget when a number of deferred augmentations may be re-submitted.

Community Corrections Partnership (CCP): 

The proposed FY2026-27 Recommended Budget for CCP is reflected in the following table:
 

Category	2025-26 Adopted	2026-27 Recommended	Change
Beginning Unassigned Fund Balance	$0	$0	$0
Base Allocation	$12,023,808	$12,481,012	$457,204
Growth Allocation	$151,604	$507,488	$355,884
Total Revenues	$12,175,412	$12,988,500	$813,088
District Attorney	$547,894	$584,483	$36,589
Public Defender	$547,894	$584,483	$36,589
Probation	$3,348,238	$3,571,838	$223,599
Sheriff	$3,348,238	$3,571,838	$223,599
Treatment	$3,043,853	$3,247,125	$203,272
Innovation	$1,095,787	$1,168,965	$73,178
Administration	$243,508	$259,770	$16,262
Total Funding Allocation	$12,175,412	$12,988,500	$813,088
Ending Unassigned Fund Balance	$0	$0	$0

In the 2021-2022 fiscal year, the Community Correction Partnership (CCP) transitioned their budget model to a percentage-based budget in order to increase the percentage of funding dedicated to treatment and innovative programs to better align to the CCP Strategic Plan. The FY2026-27 budget includes a $200,000 Innovation contribution to Woodland Police Department in support of the Advance Peace program.

At the April 14 meeting, the CCP voted to defer all departmental funding requests for program expansions and new positions to the Adopted Budget process.

Capital Improvement Program (CIP)

The FY2026-27 Recommended Budget includes a Capital Improvement Program (CIP) budget of $24.3 million. This budget includes continued funding of the Knights Landing Levee Repair and Flood Management, Walnut Park Library and Ag Shop projects.

Funding for the Knights Landing Levee repairs was secured through $15.9 million in grant funds from the State Department of Water Resources. This multi-year project is intended to increase flood protection from 25 to 100-year flood levels to reduce flood risk for the Knights Landing Basin area. The local match is 10%, or approximately $1.6 million. Funding for the local match has been set aside during the FY2019-20 and the FY2020-21 Adopted Budgets from Cannabis Tax revenues and the general fund.

The Knights Landing Flood Management is a $15.8 million grant-funded project for design of levee improvements along the Knights Landing Ridge Drainage District, which will also provide drainage infrastructure improvements within the town of Knights Landing, along with levee improvements along the County Services Area No. 6 (CSA-6) levee. These improvements are aimed at reducing or preventing flooding to the population and approximately 321 structures and 3,400 acres of agricultural lands.

Funding for the Walnut Park Library has been secured through various sources including a State Library Grant, County Library Measure A funds, and use of the County Capital Improvement Reserve.  The Walnut Park Library is expected to be completed this autumn.

 Funding for the Ag Shop was secured through use of the Ag Building Replacement Fund, Development Impact Fees, residual CIP bond proceeds, and the Accumulated Capital Outlay Fund.

The table below provides a summary of the FY2026-27 CIP budget.

FY2026-27 Recommended CIP Budget
 

Project	2026-27       Recommended
Leinberger Jail Expansion	$500,000
County Roofs	$1,000,000
Monroe Jail Expansion	$1,056,991
Grasslands Solar Repair	$1,200,000
Ag Shop	$2,559,682
Knights Landing Levee	$3,756,716
Knights Landing Flood Management	$ 6,735,795
South Davis Library	$10,100,000
Total	$26,909,184

Other Budget Assumptions and Issues

Cannabis Tax Expenditure Plan: The FY2026-27 Recommended Budget includes $616,000 in cannabis tax expenditures. The Cannabis Tax Expenditure Plan Framework, approved by the Board in January 2019, stipulates that cannabis tax revenues should only be programmed for expenditure once received. Through the first three quarters of fiscal year 2026-27, the County received approximately $467,603 in cannabis tax revenues. In addition, approximately $36,000 in interest earning is available, and staff are projecting an additional $113,000 in cannabis tax receipts in the final quarter of 2025-26. Any additional revenues collected in the current year, or available fund balance will be appropriated with the Adopted Budget in September.
 
The 2026-27 Cannabis Tax Expenditure Plan (Attachment S) includes funding for the final year of a three-year commitment to First 5 Yolo, which was approved by the Board of Supervisors on February 27, 2024. In addition, minor amounts are recommended for servicing a portable restroom in Guinda.   Consistent with the proposed budget balancing solutions presented to the Board on April 28 and May 5, 2026, staff recommend a one-time transfer of $460,000 to the General Fund to assist in balancing the County’s budget. Staff will continue to consider other funding proposals at the adopted budget depending on revenues available.
 
The proposed Cannabis Tax Expenditure Plan was presented to the Cannabis Ad-Hoc Subcommittee (Supervisors Barajas and Allen) on May 19th and subsequently to the Cannabis Tax Citizen's Oversight Committee on May 29, 2026.

Health & Human Services Emerging Needs Contingency: In 2002, Yolo County participated in the Pooled Tobacco Securitization Program, which resulted in creation of the Ceres endowment fund that is held by a trustee as collateral for the outstanding tobacco bonds. Under investment strategies approved by the Board in 2002, 2013, and 2018, funds are deallocated annually from the Ceres endowment fund and made available for appropriation as a Health & Human Services Emerging Needs Contingency that may be allocated by the Board throughout the fiscal year to programs and organizations that support emerging health and human service needs.  There is no funding set aside for this contingency in the Recommended Budget as these funds are instead being utilized to balance the budget. 

Rural Community Investments: The Rural Community Investment Program (formerly known as Rural Initiatives) was initiated in 2015 and serves to enhance economic development as well as health and safety for rural communities by addressing critical infrastructure needs in accordance with the strategic plan Safe Communities goal. Over the last several years Rural Community Investments have primarily been funded with cannabis tax funds. Additional Rural Communities Investment Program allocations will be considered as part of the Adopted Budget in September if funding is available.

Labor Negotiations:  The County is currently in negotiation with the Deputy Sheriff’s Association. The budget includes known increases for other bargaining units and made an assumption regarding the outcome of DSA negotiations. Should negotiations be complete by Adopted Budget and adjustments to staff assumptions are required, those will be incorporated with the Adopted Budget.

Pension Funding: The FY2026-27 Recommended Budget includes $62.2 million in employer pension contributions, a reduction of $1.7 million from the FY2025-26 Adopted Budget. Employer contributions for FY2026-27 were determined in the CalPERS Annual Valuation Report as of June 30, 2025. As discussed with the Board on several occasions, employer contribution rates have increased significantly over the past several years and are projected to continue increasing for a few more years before stabilizing. These increases are driven primarily by changes in CalPERS’ demographic and investment assumptions, particularly related to assumed mortality rates and a lower targeted rate of investment return. The table below shows the projected pension rates over the next five years.

Employer Pension Contribution Rates
 

Fiscal Year	Miscellaneous	Safety
2026-27	32.73%	50.75%
2027-28	32.80%	50.70%
2028-29	32.70%	50.30%
2029-30	32.10%	49.30%
2030-31	31.50%	48.30%

In addition, CalPERS Board of Administration completed their Asset Liability Management (ALM) process during calendar year 2021. The ALM Process resulted in CalPERS lowering their discount rate to 6.80% from 7.00%, which means a lower target for future investment earnings which potentially increases employer contributions in future years.
 
In May 2018, the Board approved a Pension Funding policy to establish best practices and guide the County’s effort to stabilize pension funding and address the unfunded pension liability. This action was a continuation of the effort to stabilize pension funding, following several prior actions including establishment of a pension accounting reserve, evaluation of discretionary contributions, and prepaying annual contributions. Notably, the Pension Funding policy established a Section 115 Trust to accumulate assets for pension obligations and provide for a supplemental charge on payroll expenditures for building the Trust balance to a minimum target level. As part of the budget balancing strategy in both 2025-26 and 2026-27, the supplemental pension charge has been temporarily paused and will be revisited in future years in conjunction with potential revisions to the Pension Funding Policy.
 
Other Post-Employment Benefits (OPEB): The FY2026-27 Recommended Budget includes $9.2 million in OPEB charges to departments, a decrease of $120,000 from the FY25-26 Adopted Budget. The OPEB actuarially determined contribution rate has been reduced to 5.1% following the results of June 30, 2024, valuation report.

In May 2011, the Board approved the creation of an irrevocable trust to accumulate assets for the purpose of reducing the OPEB liability. The initial policy had a funding ramp up over 15 years; however, the County achieved that ramp-up sooner than anticipated and in November 2019 updated the policy to fund the trust at the actuarially determined contribution level. The OPEB trust is expected to have a balance of approximately $52.5 million in June 2026. An updated projection for the year ending June 2026 will be available with the Adopted Budget.
 
In addition to funding the OPEB trust, significant progress has been made in lowering the overall OPEB liability through the implementation of benefit caps for most employee units. As a result of these efforts, the overall OPEB liability declined by $14.2 million in the June 2024 valuation. The table below shows the OPEB unfunded liability in each of the last three valuation reports.

OPEB Unfunded Liability
 

Valuation Report	Unfunded Liability
June 30, 2020	$65,180,000
June 30, 2022	$49,052,000
June 30, 2024	$34,772,828

Contingency and Reserves:  In accordance with the Board Policy on Fund Balances and Reserves, the FY2026-27 Recommended Budget includes the following reserve balances (Attachment T):
 

Reserve/Trust Designation	Balance as of June 30, 2026	Balance as of June 30, 2027
General Reserve (6.5%)	$23,950,854	$20,819,810
Liability Reserve	$1,363,313	$0
Audit Disallowance Reserve	$600,000	$0
OPEB Trust*	$52,554,045	$53,050,906
Pension Trust**	$26,050,664	$17,558,095

The Board Policy on Fund Balance and Reserves establishes a General Reserve target of 10% of average General Fund and Public Safety Fund expenditures. In FY2023-24, a contribution was made to the general reserve to bring the reserve percentage to 8.5%. The Recommended Budget does not include a contribution to the reserve and instead recommends utilization of approximately $3.1 million of the General Reserve. Staff will revisit the potential of maintaining and ideally increasing the reserve percentage during the Adopted Budget process.

Given the difficulties in balancing the Recommended Budget, there are no contingencies recommended at this time.  In recent years, the County has set aside funds as contingencies for the General Fund, Public Safety and HHSA funds, consistent with the County Policy on Fund Balances and Reserves.  Staff intend to revisit all contingencies as part of the Adopted Budget process.

Additional Items for Consideration in Adopted Budget

The Recommended Budget does not allocate funds to several areas which may need to be considered with the Adopted Budget in September. There are also several other emerging needs or topics that will need to be addressed at that time:

• Insurance Increases – Projections for Workers Compensation, General Liability and Property insurances were estimated during the Recommended Budget process.  While staff have made assumptions of increases in insurance rates, preliminary estimates from YCPARMIA reflect significantly higher increases.  Rates have not yet been approved by YCPARMIA, but staff anticipate additional increases in these costs that will likely  cause an additional budget gap to resolve during the Adopted Budget.
• Reserve Contribution or Reduction in Use – The Recommended Budget includes a use of $3.1 million of the General Reserve with no additional contribution budgeted. This use of the General Reserve reduces the percentage balance to 6.5%.  The County is still working toward its 10% target reserve and will revisit an additional contribution during the Adopted Budget. This reserve is important to safeguard the County against the next economic downturn or other unanticipated events such as natural disasters.
• Contingency Contributions – There are no contingencies for any funds included in the Recommended Budget. Budgeting for contingencies consistent with Board policy (1%-3% of total budgeted expenditures) should be prioritized during the Adopted Budget process if funding allows.
• Conflict Defense Panel – The contract for Conflict Defense Panel services was renegotiated during the 2025-26 fiscal year and approved by the Board on May 25.  In that staff report, the need for an additional $103,000 in funding was noted.
• County Medical Services Program (CMSP) – While the CMSP Board voted on May 27, 2026, to not reinstate participation fees for the 2026-27 fiscal year, staff will closely be monitoring expenses and policy actions related to this program to ensure the County is prepared to respond to future challenges.
• State/Federal Mandates – The County continues to monitor the State and Federal budgets for programmatic mandates that the County should prepare for. The State has added significant new requirements for counties in recent years. The Health and Human Services Agency continue conducting analysis on the impacts of the passing of Proposition 1 and how that will affect funding within the Behavioral Health Services Act and throughout the agency. The Governor’s May Revise did not include any funding for implementation of Prop 36, signifying the ongoing expectation that County HHS and Public Safety officials will be responsible for bearing the costs for these services.

Looking Forward
The Recommended Budget for FY2026-27 is balanced, meets statutory requirements, and reflects the vision and policies in the Board of Supervisor’s Long-Term Financial Plan. As outlined in the various budget updates to the Board throughout the 2026-27 Budget Development process, the County is in the midst of a multi-year process to address the structural deficit the County is facing. While the Recommended Budget does not resolve the County’s structural budget deficit, it takes a significant and necessary step toward restoring and maintaining structural balance within the County’s budget. The Recommended Budget reflects a commitment to aligning ongoing expenditures with sustainable revenues, strengthening the County’s financial position, and preserving essential public services to the greatest extent possible.

As staff worked to finalize the Recommended Budget, information regarding the Governor’s May Revise was provided to counties on May 14. Initial reviews of this proposed revision to the state’s FY2026-27 budget indicated additional reductions to various programs and funding streams that will negatively affect the County’s FY2026-27 budget and will need to be considered during the Adopted Budget process. Staff anticipate additional changes to programs such as IHSS, Calfresh and Child Welfare Services, while reductions in various 1991 and 2011 Realignment and various grant programs are anticipated.

The table below summarizes the items that may be brought forward for consideration in the Adopted Budget. The list is not all inclusive and other items not listed may be brought forward.
 

Potential Items for Consideration	Estimated Amounts
General Fund Contingency (1%)	$2,400,000
Public Safety Contingency (1%)	$1,000,000
Health & Human Services Contingency (1%)	$2,400,000
Agriculture Promotions	$16,618
ACE Extra Help and Overtime	$59,250
DCS Promotions and Extra Help Increase	$74,952
CAO Leave Buyout	$10,000
Countywide Employee Recognition	$8,000
District Attorney Oakdale Prosecution	$600,012
District Attorney Promotions, Extra Help and Leave Buyout	$373,124
District Attorney Food	$13,500
District Attorney Expert Witness Costs	$105,000
DFS Revenue Supervisor Double Fill	$50,039
GSD Equipment	$315,000
GSD Airport Grant	$78,579
Public Defender Staffing	$1,788,906
Public Defender Support and Care	$25,000
Sheriff Vehicles	$1,330,000
Sheriff Leave Buyout	$45,000
Sheriff VR Use of Force Training Equipment	$180,000
Total	$10,872,980

Finally, as previously mentioned, the 2026-27 Recommended Budget represents the first step in the multi-year process to address the County’s structural budget deficit. While the Board is continuing to pursue new revenue options it is anticipated that further reductions will be required in the coming years.  The 15% budget reduction targets used in the 2026-27 budget development process served to highlight many of the challenges facing County services and operations, and the impact that may result from various budget reductions. It has also given a strong indication that making reductions of similar magnitude in future years will be exceedingly difficult. As such, different strategies and approaches may need to be considered in future years in order to fundamentally re-evaluate the services and programs that the County provides to constituents.