Yolo County faces severe budget cuts amid declining mental health funding

The Yolo County Board of Supervisors meeting on March 11, 2025, focused on significant financial challenges facing the county's mental health services. The discussion highlighted a drastic decline in the Mental Health Services Act (MHSA) fund balance, which has fallen to zero and is projected to be in the red for the upcoming fiscal year 2025-2026. This situation has raised concerns about the county's ability to maintain essential mental health services amid decreasing revenues.

County officials noted that the historically large fund balances, which had previously allowed for robust funding of mental health programs, are no longer available. The recent passage of Proposition 1 has further complicated funding, as it imposes restrictions that negatively impact Yolo County's behavioral healthcare system. This change is set to take effect on July 1, 2026, and is expected to create significant challenges in funding MHSA programs.

In response to the financial crisis, the county has already made substantial cuts, including a reduction of approximately $6 million in expenditures last year. The budget for 2025-2026 continues to reflect a multimillion-dollar deficit in both the MHSA and realignment funds, which are critical for health and human services.

The meeting also addressed staffing changes at local clinics, with plans to transition from contracted services to a smaller team of county employees to operate the Davis Clinic. However, hiring freezes and budget constraints have complicated these efforts, leading to concerns about the sustainability of mental health services in the county.

As Yolo County navigates these financial difficulties, officials emphasized the need for strategic decisions in the coming months to ensure the continuation of vital mental health services for the community. The board's discussions underscored the urgency of addressing these budgetary challenges as they prepare for the upcoming fiscal year.