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Social Services warns of structural shortfall; board tentatively backs one‑time bridge funding
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Summary
Social Services Director Daniel Nielsen told the Board the department faces a structural budget gap driven by stagnant realignment revenues, frozen state administration increases, and reduced CalFresh funding; the CEO recommended one‑time county funds to close a remaining $3.4 million shortfall in 2025–26.
Santa Barbara County’s Department of Social Services told the Board of Supervisors on April 14 that it faces a structural fiscal challenge and is asking the county to use one‑time funds to bridge a roughly $3.4 million gap for fiscal 2025–26.
Director Daniel Nielsen explained the shortfall stems from four main drivers: flat or declining 1991 and 2011 realignment revenues while the local costs those funds support have grown; a frozen increase for Medi‑Cal administrative funding; reduced CalFresh administration allocations; and large increases in county internal charges (information technology, facilities and risk costs). The department reported it had already taken $10.8 million in internal reductions, including unfunding 46 vacant positions and reducing contracts and equipment replacement, but a $3.4 million gap remained in the initial recommended budget.
Nielsen and Chief Financial Officer AJ Kinoveva said the department is unable to draw all available CalFresh program allocation because it lacks the $870,000 required match. They warned federal and state policy changes — including contemplated changes to Medi‑Cal and federal assistance programs — could further affect revenues and service demand.
Board direction and next steps: the CEO recommended use of one‑time general county funds to close the $3.4 million gap and an additional $1.6 million ongoing general‑fund contribution to cover IHSS maintenance‑of‑effort increases. Supervisors asked staff to accept the county’s recommendation for one year while department and CEO staff continue to pursue longer‑term structural options and promised a return in September/October for an in‑depth update.
Service impact and context: Social Services delivers a wide range of safety‑net programs and currently serves large shares of county residents — the department said it serves over 176,000 residents monthly and more than 69,000 children. Nielsen emphasized that without additional ongoing resources, program capacity and staffing would continue to shrink. He also flagged the department’s need for a $870,000 match to draw down $3,000,000 in CalFresh allocation the state and federal government have available.
Quote: “What we do, what do we live for if not to make life less difficult for each other,” Nielsen said, citing Mary Ann Evans while describing the department’s mandate to protect vulnerable residents.
Authorities referenced: the department cited its reliance on state realignment revenue streams (often labeled “1991 realignment” and “2011 realignment”) and noted pending state bills (AB283) and federal actions could shift responsibilities and funding. The board accepted staff’s recommendation to use one‑time funds for FY 2025–26 and asked for a full structural review later in the year.
