Hold a public hearing and adopt the County of Yolo Budget Resolution for fiscal year 2026-27; hold a public hearing as the In-Home Support Services (IHSS) Public Authority Board and approve the IHSS Public Authority budget for fiscal year 2026-27; approve the 2026-27 budgets for Board-controlled Fire Districts; and approve changes to the 2026-27 Authorized Equipment List. (General fund impact: $141,696,353) (Webb/Haynes/Liddicoet) (Est. Staff Presentation: 20 min)

Background
State law requires that the Board adopt the annual budget by October 2 of each year. The attached budget resolution (Attachment B and Exhibit 1) is based on the FY2026-27 Recommended Budget as approved by the Board of Supervisors on June 9 and revised by the recommendations in this report. These recommendations have been reviewed with the Chair and Vice Chair in accordance with the Board's Governance Manual.

The County Budget Act (Gov. Code Section 29000-29144) establishes levels of authority for approval and modification of the County's budget. Prior to approval of the Adopted Budget, the Board of Supervisors may make changes to the Recommended Budget with a majority vote. Once the Adopted Budget is approved, and upon conclusion of the public hearing, most budgetary changes require a four-fifths vote of the Board. Such changes include transfers between funds, appropriation of any fund balances or unanticipated revenues, transfers from contingency appropriations, and appropriation of reserve balances. If overall appropriations are not increased, transfers between budget units within a fund only require a majority vote. If overall appropriations are not increased, staff may perform transfers or changes within a budget unit administratively.

Preliminary Fund Balance Report
The Preliminary Fund Balance Report is a general accounting of the fund balances for all County funds as of June 30, 2026, which is normally provided as an attachment to the Adopted Budget. Due to a lengthy year-end close process, staff will be providing this report as part of the Five-Year forecast update to the Board, which will precede the 2027-28 Fiscal Year Budget Development process.

FY2026-27 Adopted Budget
On June 9, 2026, the Board approved the FY2026-27 Recommended Budget, which provided appropriation authority until the Adopted Budget is approved. The proposed FY2026-27 Adopted Budget incorporates changes to the Recommended Budget based on revised revenue projections, estimated available fund balances, changes resulting from the State budget, additional department requests and Board priorities.

Since the approval of the Recommended Budget, the broader economy continues to display signs of resiliency despite ongoing turbulence at the Federal level. Concerns of a recession remain limited, but the impacts of Federal reductions to state and local funding have added pressure as the County works to address its structural deficit and maintain services for vulnerable populations. Under these conditions, the County continues to experience cost pressures that exceed forecasted revenue growth.

Updated projections reflect an increase in FY2026-27 general purpose revenues of approximately $174,000. These additional dollars are due to anticipated growth in Williamson Act revenue, based on updated figures provided by the Yolo County Assessor. The Recommended Budget included an assumption of property tax growth of 4%. On June 30, the Assessor delivered the assessment roll with growth of the same amount. As such, no adjustments to Property Tax revenues are recommended. With regard to General Fund unassigned fund balance, the County ended the prior year (FY2025-26) with an estimated $17 million in General Fund unassigned fund balance, approximately $10 million more than what was appropriated in the Recommended Budget. As discussed further below, this additional one-time unassigned fund balance allows the County to mitigate reductions in state and federal funding streams, avoid further reductions, and reinvest in reserves during the Adopted Budget process.

The Adopted Budget also includes increases in state funding related to the passage of H.R. 1, the federal law also known as the One Big Beautiful Bill Act. Late in the Recommended Budget process, the California State Legislature indicated its intention to provide one-time funding to Yolo County ($1.28 million) to assist in implementation of H.R. 1. This additional one-time funding allowed HHSA to restore six positions that had been identified for reduction. After the Recommended Budget was approved, the state adopted its own budget which included additional one-time funding for Yolo for H.R. 1 implementation in the amount of $1.24 million, beyond what was included in the Recommended Budget. It is recommended that $380,000 of this additional amount be used for overtime, data reporting and training purposes related to H.R. 1, while the remainder be used to assist in mitigating future funding reductions.

FY2026-27 Recommended Budget
The Department of Financial Services (DFS) and County Administrator first updated the Board on January 13, 2026, when 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 measures have helped balance recent budgets but have also reduced the County’s remaining financial flexibility. Along with the Five-Year Forecast, these metrics demonstrate the need to better align ongoing expenditures with ongoing revenues. Many of the less disruptive budget-balancing tools have already been utilized, meaning that further reductions may increasingly affect 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 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).

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 discussion at 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 $12.4 million, while HHSA Non-General Fund reductions total $8.1 million. Categorically, these reductions are reflected in the table below:
 

Reduction Category	Reduction Amount
Reduction of Vacant Positions	$12,903,997
Reduction of Filled Positions	$3,224,618
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	$22,270,909
Less HHSA Admin Allocation	($1,750,564)
Revised Total	$20,520,345

Despite these sizable reductions, additional solutions were still needed to balance the Recommended Budget.

General Reserve
Of the available $23.9 million, the Board approved the use of $3,131,672 in the County’s General Reserve to assist in balancing the 2026-27 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. 

As discussed further below, the higher than anticipated fund balance has allowed staff to present a balanced Adopted Budget without use of the General Reserve, preserving those funds to help address the structural deficit and mitigate service reductions in future years.
 
Pension Trust
The projected balance of the Pension Trust as of June 30, 2026, was $26 million. In order to balance the Recommended Budget, the Board approved the use of approximately $8.5 million of the Pension Trust. Of this amount, $4.0 million has been used to balance the General Fund, while the remaining balance is returned to the funds from where they originated. The remaining $4.5 million in Pension Trust funding allowed other funds, including those supporting the Health and Human Services Department, to receive benefits that mitigated both reductions in revenues and increases in expenditures during the Adopted Budget process. Following this action, the projected balance of the Pension Trust is $17.6 million.
 
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 from former Redevelopment Agencies 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.

 The Board approved 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.

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 are estimated with a reasonable degree of certainty. In prior fiscal years, General Funds were designated as an Audit Disallowance Reserve and Liability Reserve to be available should they be required for the County to cover unanticipated future claims losses or financial obligations.
 
The Board approved 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

Use of these reserves is in addition to the other policy reserves utilized to balance the 2025-26 budget, including the CIP Reserve and HHSA Reserve. These reserves have now been entirely depleted; however, as discussed further below, staff are recommending that a portion of the one-time fund balance be used to re-establish an HHSA Reserve.

Other One-Time Solutions
Various other one-time balancing solutions were included in the Recommended Budget. Some are included in the table below:
 

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

 
General Fund
The General Fund ended FY2025-26 with a preliminary estimated available fund balance of approximately $17 million. This is approximately $10 million more than the $7 million in General Fund unassigned fund balance estimated in the Recommended Budget. As described below, this increase in fund balance is due primarily to a larger than anticipated transfer from the Teeter Fund, and salary savings that exceeded budgeted amounts.

For context, the table below shows the unassigned General Fund balance available during the Adopted Budget process over the past five years.
 

General Fund Unassigned Fund Balance Available at Adopted Budget
2021-22	2022-23	2023-24	2024-25	2025-26
$20,185,352	$17,878,772	$14,755,188	$9,881,620	$17,055,825

It is important to note that the 2025-26 Budget was balanced utilizing approximately $11 million in one-time solutions, as outlined in the following table:
 

Funding Sources	Amount
Policy Reserves (CIP Reserve, HHSA Reserve, etc.)	$4,176,262
Chula Vista	$3,495,261
Board Directed Projects/Former ARPA	$2,493,966
Cannabis Tax	$450,000
Pomona Fund	$450,000
Total	$11,065,489

Use of these one-time funding sources reduced pressure on the General Fund during FY2025-26 and contributed to the higher year-end unassigned fund balance. Without these budget-balancing measures, year-end fund balance would have been lower, potentially requiring additional reductions in the Adopted Budget.

Yolo County participates in what’s known as the Teeter Program (R&T Code Section 4701-4717). Under this program, the County distributes the full amount of secured property taxes that are owed to taxing agencies each year irrespective of the amounts that are actually collected. In exchange, the County gets to keep the penalties and interest that accrue on delinquent accounts. State law requires that a certain amount be kept in reserve to ensure that sufficient funding is available to make the property tax distributions, but any excess can be transferred to the County’s General Fund. The amount available to transfer to the General Fund varies significantly from year to year due to numerous unpredictable factors including growth in the secured tax roll, the number and size of delinquent accounts, and the timing of delinquent account payments. In 2025-26, the Teeter transfer was approximately $4 million higher than what was budgeted.

Further contributing to higher than anticipated fund balance is approximately $6 million in unanticipated salary savings. These savings are the result of an ongoing hiring review process put in place by the CAO’s Office and holding positions that were slated for departmental reduction in the 2026-27 fiscal year. The actions were all undertaken intentionally, in order to bolster fund balance.
 
While fund balance has exceeded staff estimates, it is important to note that ongoing expenditures in fiscal year 2025-26 continued to outpace ongoing revenues by $10.8 million, reflecting the underlying structural deficit the County continues to experience. However, the availability of this one-time increase in fund balance not only allows the County to mitigate reductions in state and federal funding sources and avoid further reductions in the Adopted Budget but also provides an opportunity for the County to take strategic actions to prepare for and protect against the significant General Fund deficits that are projected over the next several years. As discussed further below, while staff are recommending a few high-priority one-time expenditure additions, the emphasis is on replenishing reserves and contingencies in order to safeguard against unanticipated needs in 2026-27 and provide additional resources to address budgetary shortfalls in future years.

The table below provides a summary of the recommended additional General Fund funding sources and uses. Attachment C provides a detailed listing of the recommended funding uses, while Attachment D further describes department requests that are not recommended for funding.

FY2026-27 Adopted Budget General Fund Summary
 

Funding Sources	FY2026-27 Recommended	FY2026-27 Adopted	Additional Funding
Fund Balance	$7,000,000	$17,055,825	$10,055,825
General Purpose	$117,640,243	$117,814,458	$174,215
Net Available for Appropriations			10,230,040
Recommended Additional Base Budget Funding		Additional Funding Uses
Base Budget Deficit			$3,102,807
Net Available for Appropriations		$ 3,102,807
Additional Funding Uses		Additional Uses
Restore General Reserve (Used to balance Recommended Budget)		$3,131,672
Fund HHSA Reserve		$2,015,276
Fund General Fund Contingency		$1,000,000
Fund Sheriff Patrol Vehicles		$625,000
Fund DA Add'l Oakdale Prosecution Costs		$326,491
Fund HR Position Adjustments		$28,794
Total		$7,127,233
Department Requests Not Funded		$ 1,761,022

Base Budget
Departments submitted requests for $3.1 million in additional General Fund support in the base budget during the Adopted Budget process. Staff recommends use of available fund balance to fund these increases, which include increases to General Liability, Workers Compensation, other internal charges, and department-specific costs outlined later in this report.

General Reserve
The Adopted Budget includes a recommendation to utilize available fund balance to restore the $3.1 million to the General Reserve that was used to help balance the Recommended Budget. This will restore the General Reserve to approximately 8% of Board’s 10% goal, with a balance of $23.9 million. It is anticipated that additional budget reductions will be required in future years as the County continues to address the structural deficit. Restoring and preserving the General Reserve will provide additional resources that can be utilized to minimize service impacts, allow time for strategic initiatives including development of new revenue sources, and guard against unanticipated events such as natural disasters or economic downturns.

HHSA Reserve
Staff also recommend placing $2.0 million into an HHSA Reserve. A reserve specific for HHSA formerly existed in the amount of $1.49 million but was used as a one-time budget balancing solution in fiscal year 2025-26. This recommendation reinstates and bolsters that department-specific reserve in order to guard against further unanticipated state and federal funding reductions and protect essential services as HHSA addresses its structural deficit.

General Fund Contingency
Additionally, staff recommend using $1 million to establish a General Fund contingency equal to approximately 0.35% of General Fund expenditures. Pursuant to the Board’s policy on Fund Balance and Reserves, contingencies provide the first line of defense against uncertainty and should be appropriated to cover unanticipated needs that may arise throughout the fiscal year. While the recommended amount falls below the Board policy goal of 1% - 3% of General Fund expenditures, it does allow for a modest buffer against unforeseen expenditures or revenue losses throughout the fiscal year. No contingency appropriations were included in the 2026-27 Recommended Budget.

Position Adjustments
While the Adopted Budget does include a total of 9.75 new positions, only two are funded by the General Fund. One is being added to address reporting and supervising issues, and will be recruited internally, with the vacant position of the chosen individual being deleted after filling the new position.  The other General Fund position is a limited-term position in the District Attorney which is being added to address additional staffing needs as the office works through the prosecutorial process of various cases related to the Oakdale incident. The remaining 7.0 positions are fully funded by a variety of other non-General Fund sources that must be used for specific purposes. There are 6.0 vacant positions recommended for elimination, and one filled position recommended for reduction, as the grant funding that supported the FTE has been eliminated by the Federal government. The proposed changes equate to a net increase of 2.75 positions.

The table below summarizes position changes that are recommended in the Adopted Budget. Attachment G provides a comprehensive overview of all position changes and requested positions that are not recommended at this time.
 

2026-27 Adopted Position Changes
New Positions Recommended for Approval
Department	Position	FTE	Funding Source
DA	Victims Services Supervisor	1.0	State/Federal/GF
DA	Case Prep Specialist (LT)	1.0	General Fund
HHSA	Public Assistance Specialist II	3.0	State/Federal/Realignment
HHSA	Behavioral Case Managers	2.0	Behavioral Health Services Act
HHSA	HHSA Program Coordinator	1.0	Behavioral Health Services Act
Probation	Social Worker (LT)	1.0	Secure Youth Treatment Facility
Public Defender	Mental Health Peer Support Worker (LT)	0.75	Holistic Defense Grant
	Subtotal	9.75
Filled Positions Recommended for Elimination Due to Federal Grant Funding Cut
Department	Position	FTE	Funding Source
HHSA	Community Health Assistant II	(1.0)	Office of Traffic Safety Grant
	Subtotal	(1.0)
Vacant Positions Recommended for Elimination
Department	Position	FTE	Funding Source
SHER	Detention Facility Cook	(1.0)	GF/Prop172
HHSA	Public Assistance Specialist III	(3.0)	State/Federal/Realignment
HHSA	HHSA Program Coordinator	(1.0)	Federal/Realignment
HHSA	Outreach Specialist II (LT)	(1.0)	Federal/Realignment
	Subtotal	(6.0)
	Net Position Requests	2.75

County Departments
The following sections provide an overview of the County department budgets. The narrative includes discussion about adjustments to balance the FY2026-27 Adopted Budget, a summary of major programs, as well as highlights of significant budget changes. Items recommended to be funded with non-general funds are included in Attachment E.

Agriculture
The Adopted Budget for Agriculture includes an increase of $34,000 in net county cost as a result of increases to internal charges. The department also requested augmentations to promote two inspector positions at a combined cost of $16,000. Consistent with standard practice, staff do not recommend additional funding for these promotions. Any approved promotions will need to be absorbed within the department’s existing appropriations.

Assessor/Clerk Recorder/Elections (ACE)
Assessor:
The Assessor’s division has an anticipated net county cost increase of $17,002 in their Adopted Budget. The increase in net county cost is primarily due to updates in internal charge amounts of approximately $15,000 as well as increases in the division’s admin allocation.

One augmentation request was submitted by the Assessor’s division. The request is for $36,000 in additional Extra Help appropriations to assist with the closing of the property tax roll. Due to the current fiscal climate, staff recommend this request not be approved and instead be absorbed in the unit’s current appropriations.

Elections:
The Elections division’s budget has a reduction in net county cost of approximately $11,000. This reduction in net county cost is attributed to adjustments to internal charge costs that include lower than anticipated costs for the unit’s dedicated GIS analyst, and an overall decrease in Salary and Benefit expenses. Other notable changes include additional state funding of $158,000 for the purpose of expediting the vote counting process, providing voter outreach, and providing education for the November 2026 statewide general election. Additionally, included is the reclassification of an existing Outreach Specialist I to a Public Information Specialist in the unit that is included as part of the detailed position table in Attachment G of the board packet.

Augmentations in the Elections division include a request to increase Overtime appropriations in the unit by $23,250. The purpose of the request is for the staffing of an additional Vote Center and to assist with the Instant Conditional Voter Registration Process. Staff do not recommend this request for approval.

Clerk Recorder:
The Clerk Recorder’s Adopted Budget includes an increase in net county cost of approximately $7,800 primarily due to updated internal charge and division’s admin allocation. Included in the submission of the Clerk Recorder’s budget is an augmentation request for improvements to Room 105 and 106 totaling $200,000. These improvements include costs of engineering new wall panels and outfitting the training center with proper conference audio visual support, and new desks and chairs. Staff recommend this request for approval as this request is to be funded with the Clerk Recorder’s special funds and does not carry a general fund impact.

Board of Supervisors
The Adopted Budget for the Board of Supervisors includes an increase of $10,700 related to changes in various internal charges and insurance coverages. The department did not submit any augmentation requests.

Regional Child Support Agency
The Regional Child Support Agency (RCSA) FY2026-27 Adopted Budget reflects updates to budgeted internal charges throughout the department. These updates include increases to A87 cost plan charges, workers compensation insurance, and increases in the Professional and Special services for Accounting and Auditing of approximately $13,000. Offsetting these increases are reduced retirement costs in the department of approximately $266,000. Due to the overall reduction in expenses in the department as a result of these changes, Federal Performance Incentive Funds were reduced to balance budget submission as the RCSA is funded with State and Federal revenues with no general fund support.

RCSA does not have any augmentation requests included as part of their Adopted Budget request.

Community Services
The Department of Community Services FY2026/27 Adopted Budget includes an increase in net county cost of $28,500 driven by increased costs in the Planning Division and decreased costs in the Building and Animal Services Division. The department is also requesting adjustments to other divisions that have little or no effect on net county cost. Details about each division are included below:
 
Planning
The Planning division’s Adopted Budget reflects a $102,000 increase in net county cost derived from both reduced revenue estimates and increased anticipated expenditures. Revenue reductions are being driven by a $182,000 decrease from the elimination of the Assistant Director position. This position historically generated intradepartmental revenue from work being performed in other divisions. Due to the unknowns of how work will be divided in the new structure, the department did not budget for revenue that may be generated from other positions that will be backfilling for the eliminated position. This reduction is being partially offset by increased permit revenue ($97,000) to align with historic trends, and increased code enforcement revenue ($35,000) from a recent increase in citation charges.

Several Professional Service expenses are also increasing in the division. Notable increases include additional charges from the Building division for help with code enforcement activities ($38,000), additional legal needs ($18,000), and increases in permitting software fees ($4,000). These increases are being partially offset by a net decrease in internal charges ($9,000).

The division is also requesting one augmentation for the promotion of an associate planner. Consistent with standard practice, staff do not recommend additional funding for these promotions. Any approved promotions will need to be absorbed within the department’s existing appropriations.

Building
The Building division is an Enterprise Fund that is intended to be self-funded through fees and charges; however, the division had a budgeted net county cost at recommended budget, as their current revenue and fund balance is not sufficient to cover all expenses. The division is taking steps to reduce its net county cost. The division’s Adopted Budget reduces part of the net county cost ($56,500) through a variety of adjustments. Expenses are decreasing from internal charges ($17,000), and additional revenue is being created from Building staff doing work for the Code Enforcement division ($57,000). These savings in net county cost are being partially offset by increases in contracting services ($23,000) needed due to the loss of staff.

The division has requested two augmentations. The first is for Development Impact Fee (DIF) funding to reimburse the division for staff time spent collecting fees associated with DIF projects. This $7,000 request for DIF funding is recommended for approval. The division is also requesting $1,500 for leave buyout for an eliminated position. Staff do not recommend this for approval as it is standard practice that departments absorb these one-time salary costs.

Animal Services
Animal Services is decreasing its net county cost by $23,000. This is the result of a variety of changes within the division including a total increase in revenue of $250,000. This revenue increase is driven by additional revenue from local cities ($350,000) due to updated cost calculations for the service agreements. The previous numbers that were used at Recommended Budget did not take into account the most recent actual expenditures in the department. This revenue increase is partially offset by reductions from license revenue ($22,000) based on historic trends and the removal of grant revenue ($78,000) due to the partial spend down of the Sniptember grant that provides low cost spay and neuter services.

The division anticipates a $281,000 increase in internal charges, driven mainly by an A-87 indirect cost allocation increase ($210,000). Other costs are expected to decrease by a net $54,000, primarily due to reduced Sniptember grant activity.

Animal Services is requesting four augmentations. The first is related to the ongoing Clinic-in-a-Can project. As part of the FY2025-26 Adopted Budget, the Board approved $585,000 for Animal Services deferred maintenance, and Clinic-in-a-Can, to be funded with Accumulated Capital Outlay (ACO) funds. To date, the division has spent $385,000, leaving a remaining balance of $200,000 from the original approved amount. After discussions with the department and General Services, it is now estimated that remaining costs could be as much as $1 million due to cost directly related to standing up Clinic-in-a-Can and additional costs associated with electrical hookups and upgrades. Staff recommend approval of the augmentation and up to $800,000 in additional ACO funding to complete the project.

The three remaining augmentations are represented in the chart below. These funding requests are not recommended for approval at this time. Any promotions that may take place during the course of the fiscal year should be absorbed by the department within current appropriations.
 

Description	Cost
Promotions	$5,000
Extra Help increase	$50,000
Vehicle maintenance	$45,000

Fleet Services
Fleet Services anticipates increased cost of $115,000 primarily due to a $112,000 increase to the cost plan charge. These costs will be offset by charges to other departments as Fleet is operated as an internal services fund. These increased costs were not included in the most recent calculation of fees and may result in overages in other departments’ fleet charges. The increase represents a roughly 4% increase in Fleet fees that will be shared across County departments.

Additionally, the department is requesting appropriation to purchase a new electric fleet vehicle for $80,000. Staff are recommending this request be approved as this expense will be paid for with available fund balance.

Cannabis
The only changes in the Cannabis division are related to internal charges. The division is seeing a $56,000 expense increase primarily driven by increased A-87 indirect cost allocation ($48,000) that will be funded with available Cannabis fund balance. The division has no augmentation requests and no net county cost.

Environmental Health
Environmental Health’s Adopted Budget includes a $5,000 reduction in net county cost. Internal charges are decreasing in the division by $90,000. The division is also requesting additional appropriations to replace internal PCs based on ITSD’s recommendation ($15,000), and costs to complete a fee study ($12,500). The remaining savings are being generated in the Certified Unified Program Agency (CUPA) cost center that is a non-general fund unit and is being used to reduce the use of fund balance.

Roads
The Roads division Adopted Budget includes adjustments to realign its budget based on current known projects. Due to the variability of the projects within this division, the full costs and revenue of all active projects are budgeted, and any remaining appropriations are re-budgeted in subsequent years. The Adopted Budget adjustments include $3.1 million in increased expenses based on the current projects and equipment list. These projects have no effect on net county cost.

Integrated Waste Management (IWM)
The Integrated Waste Management Adopted Budget includes a $500,000 increase in revenue from a Redtail Renewables payment that was made at the commencement of the landfill gas to renewable natural gas project, and $40,000 for a tire amnesty grant. Internal charges are decreasing by $129,000 primarily from decreases to A-87 indirect cost allocation and public liability insurance costs. Other notable changes include a $28,000 increase to credit card fees based on recent trends, and $165,000 increase in Professional Services to provide flexibility within the budget for the large number of ongoing projects that are taking place. This division has no net county cost and no augmentation requests.

County Service Areas (CSAs)
Staff recommend adjustments to three County Service Area budgets. This includes a $126,000 increase to revenue in El Macero CSA due to the recent passing of a Prop 218 vote, the removal of $197,000 of revenue in the North Davis Meadow Water CSA due to the completion of the tie-in with the City of Davis water system, and a $90,000 increase in expenses for the Knights Landing Snowball CSA for levee maintenance. These requests have no impact on the General Fund.

County Administrator's Office
The Adopted Budget for the County Administrator's Office includes an increase of $21,000 in net county cost due to anticipated increases in internal charges ($14,175) and insurance charges ($28,430). A portion of these increases is being offset by a reduction in the General Fund contribution to Yolo 211 ($22,000) due to the identification of additional grant funding to support the program during the 2026-27 fiscal year.

The department submitted an augmentation request for $10,000 in leave buyout. Staff do not recommend approval of this request and advise that the department absorbs any leave buyouts within their existing appropriations.

County Counsel
The FY2026-27 Adopted Budget for County Counsel includes a $554,000 increase in net county cost when compared to recommended budget. This increase is due to the execution of contracts related to the Conflict Defense Panel. As prosecution related to the Oakdale Fire has progressed in recent months, use of the panel has increased from five full-time attorneys to seven. These costs are a consequence of the state constitutional mandate that the County fund all costs associated with indigent defense (i.e., the costs of providing a defense to individuals who cannot afford to pay with their own resources) rather than a discretionary funding decision.

A portion of this funding was included with the Recommended Budget; however, given the difficulty of balancing the Recommended Budget, the conflict defense panel contracts were not fully funded. When the defense panel contracts were before the Board on May 26, 2026, staff noted the need for additional funding, citing it would be requested during the Adopted Budget process.

The department made no new augmentation requests as part of the Adopted Budget process.

District Attorney
Staff recommend adjustments to the District Attorney's Adopted Budget resulting from changes to internal charges and insurances in the amount of $89,000. The department is also anticipating reductions of Prop 172 revenues in the amount of $156,000; however, no additional General Fund is being provided to backfill that loss as the department has absorbed the lost revenue through anticipated salary savings.

The department submitted an augmentation request related to the ongoing investigation and prosecutorial work related to the Oakdale Fire. This request includes the following items:
 

Augmentation Request	Anticipated Cost
Extra Help Funding	$160,047
Expert Witness	$25,000
Transportation and Travel	$10,000
Professional Services	$15,000
New Position-Case Prep Specialist (LT)	$116,444
Total	$326,491

Staff recommend approval of the approximately $326,000 augmentation request, including funding for a limited-term Case Preparation Specialist.

The department is also requesting an additional $75,000 for Expert Witness funding in its general Prosecution unit, as prior year expenses have steadily increased and are now exceeding the department’s base budget for this service. A request for conversion of a limited term Paralegal to Regular was also submitted, as the position currently expires at the end of 2027.

At this time, staff do not recommend approval of the conversion of the limited term position or of the $75,000 in additional expert witness funding.

The Adopted Budget for the District Attorney also includes the creation and addition of a new classification, Victim Advocate Supervisor. Once approved, the department will conduct an internal recruitment amongst the qualified existing employees. Once a selection is made, the selected employees' former position will be eliminated, making the addition ultimately net zero. The department has been working with Human Resources on creation of this classification for approximately one year, ensuring communication with the affected bargaining units. Staff recommend approval of this addition.

Financial Services
The Department of Financial Services (DFS) Adopted Budget includes an overall increase in the use of General Fund of approximately $9,000. This is a result of minor adjustments in internal charges and insurance charges.

The department submitted an augmentation to convert a vacant Accountant II position to an Accountant III to provide additional support in the General Accounting unit and to provide a pathway for career progression within the department. The Accountant III position was previously eliminated as part of the budget reductions during the Recommended Budget as it was the only vacant position in the department at that time, but the department believes this is a critical position for the long-term sustainability of the General Accounting section. Staff recommend approval of this augmentation, as the department has demonstrated salary savings in order to fund the increase without additional General Fund being required. The department also resubmitted one augmentation request to double-fill a Revenue Supervisor position for three months as 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 do not recommend approval of this augmentation.

General Services
The General Services FY2026-27 Adopted Budget primarily focuses on requests for funding within the facilities division for projects that are happening throughout the county. The changes in the Procurement, Graphics, Tuli Mem, and Airport divisions only pertain to internal charges, for a total increase in net county cost of $172,000, which is primarily driven by a $163,000 increase in A-87 indirect cost allocation in the Airport division. The remaining divisions are discussed in detail below.

Facilities
The Facilities division is anticipating a $122,000 increase in net county cost related to internal charges and the removal of an erroneously budgeted salary savings factor. The division is also requesting to re-budget several projects that were previously approved in FY2025-26 but have not been completed. A list of these projects and their funding source have been identified below. All of these projects are recommended to be approved.
 

Description	Cost	Funding Source
Public Defender basement renovation	$75,017	ACO
Justice Campus well study	$19,331	ACO
ADA transition plan	$315,634	Roads Fund
Roof beam consultant	$100,000	ACO
Sheriff control room project	$106,947	ACO
Justice Campus panel and keyboard upgrade	$16,065	ACO
Courthouse windows	$437,092	ACO
Facilities condition assessment	267,227	DIF

The department is also requesting additional ACO funding for two projects. First, the “Macho Monster”, which processes solid waste into smaller material for discharge into the sewer system. In the 2025-26 Adopted Budget, $400,000 in funding was approved for the Justice Campus Macho Monster machine. After further research into the project needs, it was determined that an additional $450,000 will be needed to purchase and install the equipment for a total cost of $850,000. Second, $105,600 in funding is also being requested to repair the Administration Building roof. Staff recommend approval of the additional ACO funding for both projects.

The department has identified $300,000 in additional improvements and vehicle/equipment requests for which funding sources are not available. The requested items below are not recommended for approval at this time.
 

Description	Cost
Facilities Operations Truck	$75,000
Facilities Operations Truck lift gate	$125,000
Gonzalez roof ladder	$30,000
OSHA horizontal gate requirements	$10,000
Annual gate inspection	$10,000
120 W. Main Suite D design phase	$50,000

Finally, the department is requesting two additional Facilities projects, and one Tuli Mem project that, while not recommended for approval at this time, staff recognize the importance of and will be working with the department to refine both cost and scope, along with appropriate non-General Fund funding sources. Once project details have been refined and funding sources identified, staff may return to the board for separate action. The project descriptions and estimated costs are included in the chart below.
 

Description	Cost
500 Jefferson Parking Lot	$100,000
Key Card Phase 1	$950,000
Tuli Mem pool resurfacing	$250,000

Natural Resources
Natural Resources is seeing decreased expenses of $84,000 from internal charges, that is driven primarily from decreased A-87 indirect cost allocation. The division is also requesting one augmentation for $75,000 to complete a parkway design as part of the Cache Creek Area Plan. Staff recommend this augmentation be approved as it will be fully funded with gravel fees. There is no net county cost in this division.
 
Parks
The Parks division is seeing a $4,000 decrease in net county cost due to changes in internal charges. The division is also requesting $120,000 in augmentation requests that can be found below.
 

Description	Amount
Campground lights	$15,000
Mower	$30,000
Vehicle	$75,000

These items are not recommended for approval at this time.

Human Resources
The Human Resources Adopted Budget includes updates to internal charges such as IT charges, General Liability and Workers Compensation insurance premiums, and the capturing of position changes in the department. Each Human Resources unit is described below.

Human Resources
The Human Resources FY2026-27 main operating budget includes general fund support totaling $4.17 million which is an increase of approximately $165,000. This general fund need is a result of changes to funding for HHSA dedicated employees. The Health and Human Services Agency (HHSA) previously funded 7 dedicated Human Resources staff members for their agency; however, that has now been updated to 6 employees with the General Fund covering the cost of the seventh dedicated position. Additional position changes include the reallocation of a vacant Human Resources Manager position to Assistant Director of Human Resources. This position will help meet the operational, supervisory, and countywide needs while supporting all aspects of Human Resources. Also included is the reclassification of a filled Personnel Analyst to a Senior Personnel Analyst as the current responsibilities of the incumbent align with those of the Senior Personnel Analyst classification. Collectively, these adjustments reflect the final phase of consolidating County HR functions into a centralized department and aligning the organizational structure to successfully serve County needs.  These position moves are anticipated to have an additional general fund impact of approximately $29,000.

Risk Management
The Risk Management division is anticipating an increase in expenditures of approximately $1.34 million in their FY2026-27 Adopted Budget. This increase is a result of Workers Compensation and General Liability insurance premiums increasing over the previous estimates used for the Recommended Budget. This increase in expenses is fully offset by increased revenues due to higher collections from departments for the operations of these programs.

Human Resources did not include any augmentation requests as part of their FY2026-27 Adopted Budget.

Health & Human Services Agency (HHSA)  Social Services (Previously Child Youth and Family) 
The Social Services unit (formerly Child, Youth and Family) has a net county cost of $5.93 million in the FY2026-27 Adopted Budget which is an overall increase of nearly $4 million in comparison to the Recommended Budget. This increase in General Fund support is attributed to the branch restructure that moved specific programs including Adult Protective Services, Public Authority, Public Guardian, and IHSS into this unit along with their associated net county costs. Additionally, there is an expected net county cost increase of $1,045,081 in Child Welfare Services as a result of decreased Realignment and State Health Administration revenues.

Overall, the unit’s revenues have reduced $4.18 million as a result of reduced Realignment revenues from the State and branch restructuring that included the movement of MHSA, 2011 Behavioral Health Realignment, and Medi-Cal reimbursements to the Behavioral Health and Veteran Services unit. Other notable revenue changes include reductions in Health-related Title XIX and Child Welfare Services Title IV-E revenues within Child Welfare Services. Included as part of the branch restructuring are the movement of expenses associated with many of these programs that include salary and benefit costs, contracts, and operational expenses into the Social Services branch. 

Public Health 
The Public Health Branch does not carry a net county cost in the FY2026-27 Adopted Budget. Expenditures in the Public Health Branch are expected to see an increase primarily in the unit’s professional service accounts as agreements with Dignity Health/Woodland Memorial Hospital and Sutter Davis were previously under-budgeted. These increases are to be paid for using Maddy Funds with no general fund impact. Additional expenditure increases include contracts with California Emergency Physicians, Woodland Emergency Funds, and Central Anesthesia Service which were not previously budgeted, which are also to be paid for using Maddy Funds with no general fund impact. Partially offsetting these increases are reduced cost plan charges and lower salary and benefit costs as a result of retirement savings due to use of the pension trust. The Adopted Budget for Public Health also includes the reduction of a filled Community Health Assistant II in the Child Passenger Safety program.  This reduction is the result of reductions in federal Office of Traffic Safety grant funding in two programs: Passenger Safety and Bike/Pedestrian Safety. in total, these programs are anticipating reduced funding in the amount of $125,000, requiring the reduction of staffing.  The programs will subsequently experience diminished program capacity, including, but not limited to, fewer events and outreach activities, and service to fewer families. 

Revenue changes in the Adopted Budget include increased Emergency Medical Service and Opioid Settlement Fund revenues that offset reductions in 1991 Public Health revenues in the branch.

The table below reflects the augmentation requests submitted in the Public Health branch. These augmentation requests include promotions that are to be funded with restricted funding sources. Staff recommend the promotions for approval as they are to be funded with restricted funding sources with no general fund impact. 
 

Public Health Augmentation Requests	Amount	Funding Source
Promotion to Outreach Specialist I to Outreach Specialist II	$6,010	Tobacco Licensing Fees/ Dept of Justice Grant
Promotion to Outreach Specialist I to Outreach Specialist II	$4,723	PH Realignment, PPIR Grant, CASPHI
Promotion to Outreach Specialist I to Outreach Specialist II	$4,839	PH Realignment, Medi-Cal
Promotion to Outreach Specialist I to Outreach Specialist II	$5,126	Medi-Cal

  
Eligibility and Employment Services (Previously Service Centers) 
The net county cost in the Eligibility and Employment Services branch is expected to be approximately $3.6 million, which is a decrease of approximately $320,000 when compared to the Recommended Budget. This decrease is attributed to supplemental state funding for Medi-Cal Administration allocation which allowed the anticipated General Fund support for the Service Centers Medi-Cal cost center to be shifted to other programs within the branch and to the Social Services branch, previously Child Youth and Family, resulting in the overall reduction in net county cost. 

Overall, revenues are expected to decrease approximately $303,000 in the Adopted Budget. These reductions are a result of reductions in Federal CalWORKs and Federal Public Assistance Administration revenues. Partially offsetting these decreases in revenues are a one-time increase in the Medi-Cal Administration allocation that is intended to assist with the impacts of H.R. 1 as well as an increase in Federal Workforce Innovation Act and State Public Assistance revenues.

Expenditures in the unit are anticipated to remain flat in comparison to the Recommended Budget. There are updates to many of the operational accounts including support and care of persons, increases to Workers Compensation insurances costs, and $380,000 in additional overtime, training, and data reporting expenses paid for using the additional Medi-Cal Administration allocation. These increases are partially offset by lower than anticipated A87 cost plan, IT Department Systems and General Liability insurance charges. 

Multiple augmentations in the Eligibility and Employment Services branch are recommended for approval, including updates to previously approved promotional requests, the addition of an Employee Services Specialist II (Limited term) that is to be funded by both the Public Utilities Commission Grant and the Workforce Innovation and Opportunity Act, and approval of an additional $99,956 request for the Welfare to Work program funded with CalWORKS revenues.

Client Aid 
The Client Aid branch of Health and Human Services is currently anticipating a net county cost of $3,565,511 which is the same amount anticipated during the Recommended Budget process. Though no change in net county cost is anticipated, the Adopted budget did include the movement of the Short Term Residential Therapeutic Program (STRTP) to the Behavioral Health and Veterans Services unit as part of the branch restructuring. Overall, the Client Aid Branch is anticipating a reduction in revenues and expenses as a result of this move, however the reduction is partially offset by increased State and Federal Adoption revenues as well as a reduction in professional-services budgeted expenses. 

Operations (Previously Administration):  
The Operations Branch does not carry a net county cost. This is because Operations expenses are allocated to the other HHSA branches. Revenues in the unit are anticipated to stay relatively flat with an increase of approximately $10,000 in the use of fund balance to balance the unit. Expenses in the Operations Branch include updated salary benefit costs, updated internal charge amounts including A87 cost plan charges, and reductions in the branch’s services and supplies accounts.

Two augmentations in the Operations Branch are recommended for approval. These augmentations include the promotion of an Accountant I to an Accountant II with the associated costs being allocated out to the other HHSA branches as part of the department’s allocation and the addition of an HHSA Manager I (Billing Coordinator) position ($214,000). The HHSA Manager I is funded with BHSA and Opioid Settlement Funds and was previously approved by the Board of Supervisors prior to the Adopted Budget hearing.

Behavioral Health and Veteran Services (Previously Adult and Aging) 
Behavioral Health and Veteran Services are anticipating an overall reduction in net county cost of $2,616,487 in comparison to the Recommended Budget. Much of this decrease is attributed to the movement of the Public Guardian and Adult Protective Services from the Behavioral Health and Veteran Services branch to the Social Services branch as a result of the branch restructuring as previously described. Revenues in the unit include the addition of American Rescue Plan dollars totaling $1,125,000 for Crisis Now and 211 programs reducing the overall Behavioral Health deficit. 

At the May 26, 2026, Board of Supervisors meeting, the Board directed HHSA to evaluate the use of $325,000 that was previously earmarked for 211 Yolo Care Coordinated HUB pilot. After assessing the current funding deficit in HHSA, staff are recommending the use of the $325,000 to close the HHSA behavioral health funding gap. Under staff's recommendation, this funding will be used for youth residential services by supporting behavioral health services for youth in residential treatment facilities, known as STRTPs. These youth are placed in STRTPs by Child Welfare Services and Probation. Alternate options for use of the $325,000 200 Yolo HUB Project allocation include the following:

1. Continue with funding of the 211 Yolo HUB Project or other programs
2. Keep the $325,000 in Board Directed Project fund balance

It should be noted that the Adopted Budget is currently balanced with the use of the $325,000 to close the HHSA behavioral health funding gap. If the Board were to elect an alternate use for this funding, additional General Fund support to HHSA may be necessary to maintain a balanced budget. 

Notable expenditure changes in the branch include contracts with G.L.O.M. and Archway for the addition of two new Substance Use Disorder (SUD) residential providers to strengthen Yolo County’s treatment capacity and ensure timely access to care for individuals in need. Additionally, the Behavioral Health and Veteran Services branch has included expenses for an additional Capital Improvement Project of $1.12 million that is to be used for rehabilitation and facility improvements and is to be funded with BHSA-Housing Intervention Funds. 

Three new position augmentations in Behavioral Health and Veteran Services are recommended for approval including the addition of 2 Behavioral Health Case Managers and an HHSA Program Coordinator. All three of the requested positions are funded with Behavioral Health Services Act, Housing Intervention component and carry no general fund impact.

Innovation and Technology Services
The Innovation and Technology Services (ITS) department’s Adopted Budget includes a net county cost of $85,671. ITS did not have a net county cost during the Recommended Budget process; however, due to uncollectable ERP costs ($31,640) and an increase in the Admin Allocation to the Direct Bill unit, General Fund backfill is needed to subsidize the department.
 
Revenues in Innovation and Technology Services are decreasing approximately $600,000. This reduction is due in part to the movement of staff and associated revenues from the Department Systems unit, which supports external departments, to other units within the department. Additionally, also included is the removal of the HHSA dedicated Departmental Information Systems Coordinator from the Direct Bill unit due to retirement. Partially offsetting the revenue reductions are salary and benefit savings as a result of staffing updates, retirement cost savings and savings due to updates to the departmental salary allocation. Although overall expenditures decreased, services and supplies expenses are increasing approximately $153,000 due to a new Public Records Act software request, license fee increases, and increased costs associated with the UKG timekeeping system. These additional costs are to be recovered as part of the ITS internal charge calculations.

Telecom revenues and expenses are anticipated to increase $87,394. This increase is attributed to higher than budgeted A87 Cost Plan charges as well as updates to internal charge amounts that include ERP, Connectivity, and Workers Compensation charges. These additional expenses result in additional revenues being collected as part of the Telecom charges back to departments.

The Telecom division has augmentations totaling $773,000, as depicted below, for the engineering expenses and updates to fiber pull boxes and wiring and cabling throughout the county. These projects are to be funded with Telecom Fund Balance with no general fund impact.
 

Description	Amount
Sheriff Admin Building Cabling Replacement	$175,000
Countywide Fiber Pull Box Maintenance and Replacement	4200,000
500A West Sacramento Cable Upgrade	$160,000
District Attorney Cabling Project	$160,000
Engineering for Wiring Projects and Pull Box Replacements	$50,000
Sheriff Fiber Replacement	$28,000

Library
The Library’s FY2026-27 Adopted Budget consists mainly of updates to internal charges in each of their respective units including Library Operations and the Yolo County Historical Collection.

Library Operations anticipates an increase in expenses of approximately $414,000 in comparison to the FY2026-27 Recommended Budget. These increases are attributed to A87 cost plan charges being $511,000 over the previously budgeted amount and also due to increases in workers’ compensation and janitorial expenses. The increased expenses are partially offset by retirement cost savings due to use of the pension trust and a reduction in the unit’s general liability insurance expense.

The Library has augmentations totaling $60,000 for the purchase of an electric van or sport utility vehicle. This augmentation is recommended for approval as it is to be funded with grant dollars awarded by the Yolo Solano Air Quality Management District.

Probation
Probation’s FY2026-27 Adopted Budget primarily consists of adjustments to revenue sources based on updated projections, an adjustment in salary allocation methodology, and adjustments to internal charges, the result of which is a $68,000 net decrease in general fund support when compared to recommended budget.

The department is seeing a $198,000 net increase in revenue which is comprised of increases to Community Corrections Performance (SB678) revenue ($243,000), Work Program revenue ($91,000) due to expansion of services, 2011 Public Safety realignment revenue, and SB129 revenue ($133,000). These revenue increases are being partially offset by reductions to the Juvenile Realignment Block grant ($112,000) and updated Prop 172 revenue projections ($157,000). The department will be transferring funds from their Secure Youth Treatment Facility (SYTF) fund to backfill the loss in Prop 172 revenue.

Additionally, the department modified the methodology used to budget for salary allocation out of their admin unit. The update identified approximately $200,000 in overallocated salary costs. This error has been corrected, resulting in decreased salary and benefits costs throughout all divisions. Other notable expense increases include a $122,000 increase from internal charges, and a $116,000 increase to the Sacramento County Office of Education contract in their AB109 division.

Finally, the Adopted Budget includes one recommended augmentation to fund a new limited-term Social Worker position. This position will work to implement a Secure Track program in the Yolo County Juvenile Detention Facility and will be funded with Secure Youth Treatment Facility  funds.

Public Defender
The Public Defender's Adopted Budget includes a decrease in net county cost support of $16,000. Despite anticipated increases in various internal charges ($27,000) and insurance coverages ($43,000), the department was notified of continued CARE Act support ($85,000), which was not included in the 2026-27 Recommended Budget. These funds were a component of the State of California’s budget negotiations and were only formalized in the summer.

The Adopted Budget includes a recommended augmentation for a .75 FTE Limited Term Mental Health Peer Support Worker, which will be funded by the Public Defender’s Holistic Defense Grant and identified salary savings due to staff vacancies. The position will support clients working through the judicial system, including by providing dependable transportation to and from appointments, interviews and mental health services.

The Public Defender also submitted an augmentation request for $25,000 for Support and Care of People funding. This augmentation is not recommended for approval.

Sheriff
The Sheriff’s Adopted Budget includes increased General Fund support of $596,000 compared to the Recommended Budget. This increase is the result of adjustments to Public Liability ($31,350), Workers Compensation ($380,044) and various internal charges along with small reductions in 2011 Realignment funding in Court Security ($11,500). The budget for the department also includes an additional $283,000 for Jail Medical, as the annual Wellpath contract was underbudgeted during the Recommended Budget process.

In order to mitigate anticipated reductions in Prop 172 funds, staff are recommending reductions in Services and Supplies, along with a small salary savings factor of $86,000.

The Adopted Budget includes three self-funded augmentations that are recommended for approval, including replacement of two portable Datawork Livescan devices ($15,000/each), which will be provided for Davis and Winters Police Departments. Additionally, the department intends to replace a latent fingerprint machine which has reached end of life and requires replacement ($75,000). Both of these items are recommended to be paid for by the Remote Access Network Board, which receives state funding annually. The department has also requested use of COPS Detention fund balance to extend a contract with National Public Safety Group for an additional two years ($285,000), to continue work on the Record Management System/Jail Management System project.

Multiple General Fund augmentation requests were also submitted by the Sheriff’s Office for consideration during the Adopted budget process:
 

Augmentation Request	Anticipated Cost	Departmental Priority Rank
Replacement Patrol Tahoes (5 vehicles)	$625,000	1
Replacement Patrol Detective and SWAT Vehicles	$305,000	6
Replacement Management Vehicles	$180,000	2
Use of Force Training System	$180,000	9
Boat Patrol-Diesel Truck	$120,000	5
Replacement Vehicle-Coroner	$100,000	7
Management Leave Payout	$45,000	8
Coroner Chaplaincy Services	$25,000	4
Patrol Replacement Toughpads	$25,000	3

Staff recommend approval of $625,000 in one-time General Fund fund balance to fund replacement of five Sheriff Patrol Vehicles. Staff do not recommend approval of any other General Fund augmentation requests.

Community Corrections Partnership
The proposed Adopted Budget for the Community Corrections Partnership (CCP) reflects an anticipated decrease in both base and growth allocations, decreasing overall anticipated revenue in the fund by approximately $100,000 over the Recommended Budget. The Adopted budget for the CCP is reflected in the table below:
 

Category	2026-27 Recommended	2026-27 Adopted	Change
Beginning Unassigned Fund Balance	$0	$0	$0
Base Allocation	$12,481,012	$12,430,279	$ (50,733)
Growth Allocation	$507,488	$458,263	$ (49,225)
Total Revenues	$12,988,500	$12,888,542	$ (99,958)
District Attorney	$584,483	$579,984	$ (4,498)
Probation	$3,571,838	$3,544,349	$ (27,488)
Public Defender	$584,483	$579,984	$ (4,498)
Sheriff	$3,571,838	$3,544,349	$ (27,488)
Treatment	$3,247,125	$3,222,136	$ (24,990)
Innovation	$1,168,965	$1,159,969	$ (8,996)
Administration	$259,770	$257,771	$ (1,999)
Total Funding Allocation	$12,988,500	$12,888,542	$ (99,958)
Ending Unassigned Fund Balance	$0	$0	$0

On July 6, the CCP voted to use available fund balance in the Treatment allocation to offset the revenue reduction, mitigating the need for additional General Fund to fund CCP programmatic expenses. The CCP moved to percentage-based budgeting in FY2021-22. Expenditures in the FY2026-27 CCP budget make investments into programs and staffing that align with the updated Strategic Plan.

Cannabis Tax Expenditure Plan
In FY2025-26, the County received approximately $594,000 in Cannabis Tax revenue and had additional interest earnings and unallocated funds from prior years for a total of $710,000 available to allocate. The County appropriated $616,000 during the recommended budget on June 9, 2026, leaving $94,000 available for allocation in the Adopted Budget. The additional funding is recommended to be allocated for improvements at the Tuli Mem Park and Pool in Esparto. Potential projects include construction of a playground and community picnic area, resurfacing of the community pool, and repair of the soccer field turf and irrigation. Staff will work with the General Services Department and return to the Board with an expenditure plan for approval.

The proposed Cannabis Tax Expenditure Plan was presented to the Cannabis Ad Hoc Subcommittee on September 3, 2026, and to the Citizen’s Oversight Committee on September 10, 2026. The Citizen’s Oversight Committee indicated support for the soccer field turf and irrigation repair.

Capital and Maintenance Projects

Accumulated Capital Outlay (ACO)
The proposed Adopted Budget for Accumulated Capital Outlay (ACO) includes an additional $450,000 for a replacement heavy duty digester for the Justice Campus, bringing the equipment total to $850,000 ($400,000 was previously approved). The ACO fund also includes approximately $1 million in expenditures related to the Clinic-in-a-Can project for the Animal Services division of the Community Services Department.

The largest item included in the 2026-27 ACO budget is repair of the Grasslands Solar Array, at approximately $1.3 million. These two 2-megawatt solar array systems are approximately 15 years old and suffered serious damage from a grass fire roughly two years ago. General Services solicited and brought contracts for Board approval before the Board on July 21. Once repaired, the County should experience reductions in costs for electricity.

Additionally, staff recommend approval of the rebudgeting of various ongoing ACO projects, which cross multiple fiscal years.

A complete listing of ACO projects included in the FY26-27 Adopted Budget is attached to this staff report as Attachment K.

Capital Improvement Program
The Adopted Budget includes continued funding for the Yolo Bypass West Levee Outfall, Ag Shop and South Davis Library Projects. Minor adjustments are being made to those budgets to reflect timing updates since approval of the Recommended Budget.

Reserves and Contingencies
The tables below summarize the total reserve and contingency amounts included in the FY2026-27 Adopted Budget, inclusive of amounts that were previously approved in the Recommended Budget.
 

FY2026-27 Total Appropriation for Contingencies (Recommended and Adopted)
General Fund/Public Safety (0.35%)	$1,000,000

FY2026-27 Total Budgeted Reserve Levels (Recommended and Adopted)
General Reserve (8%)	$23,950,954
HHSA Reserve	$2,015,276
Audit Disallowance	$0
Liability Reserve	$0
OPEB Trust*	$53,050,906
Pension Trust**	$17,558,095

Carryforward Appropriations

The FY2026-27 Adopted Budget includes $3.0 million in unused appropriations from FY2025-26 that will be encumbered and carried forward into FY2026-27. These appropriations are for one-time purchases that have been ordered but not yet paid for, or for specific one-time projects or initiatives that were not completed by year-end. Examples include vehicle purchases that have not yet been invoiced, or contingency funds awarded for a specific project that have not yet been completed. The purpose of carry-forward appropriations is to ensure sufficient budgetary authority to meet contractual obligations and to carry out Board directives. A summary of carry-forward items and amounts by department is provided in Attachment A. All carryforward appropriations have been incorporated into the FY2026-27 Adopted Budget and are included in the budget totals reflected in the budget resolution Attachment B, Exhibit B1.

Looking Ahead

Looking past the Adopted Budget, the County has several additional significant fiscal matters in various stages of being addressed that are important to highlight for the Board's awareness.

Labor Negotiations
One bargaining unit (Deputy Sheriff) continues negotiations for a new agreement as the most recent expired on June 30, 2026. Any adjustments required as a result of those negotiations will need to be addressed through the Mid-Year Monitoring process. Five bargaining units (General, Supervisor & Professional, Probation, Sheriff’s Management, and Supervising Attorney’s) will begin negotiations during the current fiscal year, with any resulting budget impacts to be addressed in the FY27-28 Recommended Budget.

Pension Funding
The FY2026-27 Adopted Budget includes $53.6 million in employer pension contributions, a reduction of $8.6 million from the FY2026-27 Recommended Budget. As a reminder, the Board approved use of $8.5 million from the Pension Trust in the Recommended Budget, as a one-time budget balancing solution. The $100,000 variance is the result of changes to positions made during the Adopted Budget process. Employer contributions for FY2026-27 were determined in the CalPERS Actuarial Valuation Report as of June 30, 2024. As discussed with the Board on several occasions, employer contribution rates have increased significantly over the past 20 years, and are currently at over 50% of payroll for the Safety plan. Fortunately, projections indicate that contribution rates for both the Safety and Miscellaneous plans will begin to decline over the next five years as more employees are hired into lower cost benefit tiers under the Public Employees' Pension Reform Act (PEPRA). In addition, CalPERS achieved an investment return of 14.8% in fiscal year compared to their assumed long-term rate of return of 6.8%. This higher investment return will further reduce employer contributions in future years.

Other Post-Employment Benefits
The FY2026-27 Adopted Budget includes $9.2 million in OPEB charges to departments. This figure is unchanged from the FY2026-27 Recommended Budget. The OPEB actuarially determined contribution rate was reduced to 5.1% following the results of the June 30, 2024, valuation report.

In May 2011, the Board approved the creation of an irrevocable trust to accumulate assets to reduce 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 $56.3 million as of June 2026.

In addition to funding the OPEB trust, significant progress has been made in lowering the overall OPEB liability by implementing 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. A new OPEB valuation as of June 30, 2026, will be completed in the fall, which will set the OPEB contribution rates for fiscal years 2027-28 and 2028-29.

State/Federal Mandates
The County continues to monitor the State and Federal budgets for programmatic mandates that the County should prepare for. The Health and Human Services Agency has begun implementation of H.R. 1 and is carefully analyzing impacts as a result of that legislation, in addition to monitoring for additional policy changes.

County Public Safety departments and HHSA continue to work on alternative funding options to address the impacts of Proposition 36, as the state has not yet provided direct funding to local jurisdictions to fund this mandate. The same departments also continue to work collaboratively on identifying solutions related to the county's Incompetent to Stand Trial population, which monetarily penalizes counties for exceeding local IST caps.

More recently, the Office of Management and Budget issued proposed revisions to federal grant regulations (known as 2 CFR 200 or Uniform Guidance) that if implemented would impose significant new requirements and risks to current and future grant funding. Yolo County submitted a letter of comment to OMB on July 13, 2026, outlining many concerns with the proposed revisions. On September 1, 2026, Congress approved a continuing resolution (short-term funding bill) that delays implementation of the proposed revisions until December 11, 2026. Staff are continuing to closely monitor this situation.

Conclusion
The Adopted Budget is balanced and meets statutory requirements. One-time higher than anticipated fund balance, due largely to unanticipated salary savings resulting from a combination of the hiring review, holding positions identified for reduction and general attrition, alleviated the need for the Adopted Budget to include additional substantive departmental reductions beyond those incorporated in the Recommended Budget. However, this avoidance of additional reductions is only temporary, as the overall operating results of 2025-26 fiscal year indicate the County remains in the midst of a considerable structural deficit. The 2026-27 Recommended Budget made significant progress toward addressing this structural deficit and allowed staff to begin considering options for the future. Staff have already begun working on the 2027-28 Recommended Budget process, knowing a more strategic and even more thoughtful process will be required to balance forthcoming budgets.

While the 2026-27 Budget continues to rely heavily on fund balance to cover ongoing costs, the strategic use of one-time funding to restore the General Reserve and reestablish an HHSA Reserve will help the County manage future budget pressures as it continues to address the structural deficit. As the County continues to grapple with Federal funding reductions such as H.R.1, the increasing costs of both labor and contracted services, combined with revenues growing at a slower rate, the strategies and solutions staff have consistently used to balance the budget in recent years are no longer sufficient.

While the budget reductions implemented in the 2026-27 Recommended Budget marked a significant first step in addressing the County's structural budget deficit, they also highlighted the many challenges facing County services and operations, and the impact that may result from various reduction scenarios. Making reductions of similar magnitude in future years will be exceedingly difficult, and different strategies and approaches will likely be needed in order to fundamentally re-evaluate the services and programs that the County provides. Staff will continue to work on addressing the County’s structural deficit and anticipate returning to the Board with an updated Five-Year forecast later this fall.

We wish to thank the many dedicated members of the County staff team, across all departments, in their steadfast work to prepare this Adopted Budget. The budget preparation process is a substantial undertaking, and in tough financial times it is even more so. We also wish to thank the Board Budget Ad Hoc Committee of Chair Allen and Vice Chair Barajas for their sound leadership and guidance throughout.
 

All County departments were provided the opportunity to submit additional budget adjustments and requests.