San Benito supervisors adopt amended FY25–26 budget with layoffs, use $584,708 in reserves to avoid furloughs

The San Benito County Board of Supervisors voted 5–0 on Oct. 1 to adopt amendments to the county’s fiscal year 2025–26 budget that implement staff reductions, a hiring and step freeze, and limited one‑time use of reserves to avoid a proposed countywide furlough.

The budget resolution approved by the board directs the county administrative officer to delete vacant positions, carry out layoffs of specified filled full‑time positions and temporary assignments, continue a hiring and step freeze, and limit travel and new contractual commitments for the fiscal year. The board also approved using $584,708 from the general fund reserves in lieu of implementing the proposed 3.08% furlough across general‑fund employees.

The vote followed presentations and public comment during a continuation of the public hearing on proposed amendments to the recommended budget. County Administrative Officer (CAO) Koleo Warren summarized a multi‑stage reduction process that identified roughly $19 million in reductions across prior workshops and, after the latest round, a remaining general‑fund gap that the CAO and auditor recommended closing with a mix of one‑time funds, payroll actions and position eliminations.

Why it matters: The adopted package aims to balance the county’s operating budget while preserving the county’s reserve policy. Board members and department heads repeatedly said the cuts would reduce services or capacity in some areas, and several department heads warned that furloughs or pay freezes could accelerate turnover in already understaffed programs.

Key facts and decisions - The board approved separate item‑level amendments for behavioral health and Health & Human Services earlier in the meeting. Behavioral‑health budget actions increased the department’s mental‑health budget to $6,665,280 to fully encumber contracted services and adjust Medi‑Cal revenue estimates; the board approved that amendment by roll call, 5–0. Gail Duvall, deputy director of fiscal for HHSA, then presented HHS adjustments recognizing prior‑year revenues; that amendment also passed 5–0. (See “Votes at a glance” below.) - The CAO reported that departments proposed or agreed to multiple staffing and operating reductions that, when combined with other measures, reduced the projected shortfall. The CAO said the most recent departmental proposals reduced 33 identified funded positions from the county’s previously listed full‑time equivalent counts; the CAO later corrected a transposition in the agricultural line so the final deletion tally reflected a single‑position clarification (see clarifying details). - To close the remaining gap without imposing the furlough, the board approved using $584,708 from general‑fund reserves in this adoption. The CAO said the county’s minimum reserve policy requires roughly $15.4 million; the CAO reported available reserves of about $19.0 million after the recommended one‑time uses. - The resolution adopted by the board also directs the CAO to continue searching for grant funding for capital projects and to return any department‑level revenue that arrives after adoption as a budget amendment where appropriate (for example, the elections office clarified that newly awarded grant funds could be used to retain a temporary elections position through the fiscal year).

Discussion highlights - Staffing and savings: CAO Koleo Warren described a tiered reduction process and told the board that the immediate personnel actions and vacancies would produce $2.4 million in budget year savings and roughly $4.0 million in recurring savings the following year because of one‑time payout costs for accrued leave in the current year. Warren emphasized the budget is projected and may require in‑year amendments if revenues or spending change. - Public‑safety concerns: Sheriff Eric Taylor urged the board to exclude front‑line deputies and corrections officers from furloughs, saying the department already operates below staffing targets and that furloughs typically increase overtime costs. Taylor said, “furloughs don’t work, in public safety,” recounting experience where furloughs led to overtime that offset any labor savings. - Behavioral‑health risk: Behavioral‑health staff warned that losing staff could jeopardize “network adequacy” under the California Department of Health Care Services for Medi‑Cal recipients and lead to corrective actions or fines if the county cannot meet required service capacity. - County counsel and contracting: Several public commenters and county counsel staff objected to proposed eliminations in the County Counsel office and raised concerns that outsourcing or expanded use of outside counsel could increase costs or reduce institutional knowledge. CAO Warren stated the decision to remove specific County Counsel administrative positions was made to avoid duplicative expense while the county contracts for some counsel services; Warren said departments were not forced to cut positions but were asked to propose options. - Temporary/seasonal hires: Department heads whose work is seasonal — notably elections and the treasurer‑tax collector — told the board they need temporary staff at key times (for example, tax bill installments and election cycles). Several supervisors said the board is open to amendments after adoption if departments receive grants or other revenue that permit restoring specific positions.

Votes at a glance - Item 1a (Behavioral Health budget amendment): Motion to approve amendment to the recommended budget to fully encumber contracts and adjust mental‑health and substance‑use disorder line items (mental‑health total cited as $6,665,280). Vote: 5–0 (roll call). - Item 1b (HHSA fiscal adjustments): Motion to approve recognition of prior‑year revenues and related adjustments for Health & Human Services. Vote: 5–0 (roll call). - Final adoption (resolution adopting FY25–26 amended budget with specified deletions, hiring freeze and use of $584,708 in reserves in lieu of furloughs): Motion adopted 5–0 (roll call). The resolution directs the CAO to implement board‑directed deletions and layoffs, continue travel restrictions, pursue grant funding for capital projects, and return with amendments if departments identify new allowable revenue.

What’s next The CAO and departments will implement personnel actions and return to the board with any necessary budget amendments if additional grant or other revenue becomes available. Supervisors and department heads said they will continue department‑by‑department reviews during the fiscal year and monitor staffing, Medi‑Cal billings and capital‑project commitments.

Ending note Board members uniformly described the package as difficult but necessary to balance the county budget and preserve long‑term fiscal stability. Several supervisors asked the CAO to continue detailed departmental reviews and to bring any newly identified revenue or grant awards back to the board for consideration.