San Benito County leaders weigh $8 million-plus in cuts as CAO seeks authority to bargain with unions

San Benito County leaders on Tuesday laid out a revised fiscal year 2025–26 budget that reduces proposed expenditures but still leaves a gap the county must close before the Sept. 22 public hearing on adoption.

Chief Administrative Officer Esperanza Colio Warren told the Board of Supervisors that staff reduced planned spending after intense department-level review but that “we need $8,000,000 more in reductions.” She told the board she lacked direct access to the county’s enterprise financial system (ERP) and received final audit numbers late Friday, which limited her time to reconcile figures: “the final numbers were received at 11:23 on Friday,” she said.

The shortfall emerged from a larger revision to a previously higher budget proposal. Colio Warren said the county’s operating budget is roughly $71 million and that the board had directed staff to reduce an initial roughly $98 million expenditure plan down toward that amount — a reduction she described as roughly $24 million once contingency funding was removed. She said total reserves now stand at about $24 million but that, after accounting for required minimum reserves (15% of operating expenses), emergency set-asides and project transfers, only about $2.4 million would be available for one-time use without risking minimum reserve levels.

Why it matters

County leaders and department heads said the cuts on the table would materially affect basic public services. Elected and appointed officials warned that departments composed largely of personnel costs have limited options other than layoffs or pay reductions, and that reduced staffing will slow or curtail services the public expects.

During a lengthy public comment…