Fresno County Board adopts $5.34 billion fiscal 2025–26 budget, uses one‑time funds to close gap

The Fresno County Board of Supervisors on the record adopted the county's fiscal year 2025'26 final budget, approving $5.34 billion in recommended appropriations and a $2.62 billion general fund budget that relies on $507 million in countywide discretionary revenues for net county cost.

County Administrative Officer Paul Nerlin told the board the recommended budget balances a less‑conservative revenue outlook with measures designed to protect long‑term stability. "This year has more pressures than we've had the last several years," Nerlin said during the hearing. "We budget conservatively for a reason, but this year we used some one‑time funding to close the gap."

The board's action comes after several hours of presentations from the chief administrative office, budget staff and departmental leaders. Budget Director Paige Benavides told supervisors countywide discretionary revenues are budgeted at about $418.1 million and that assessed value growth prompted staff to use a 4% property tax growth assumption this year, higher than the usual 2% tied to Proposition 13 adjustments.

Why it matters: supervisors and staff said the adopted budget preserves core services while managing near‑term revenue risk. The county used $15 million in one‑time sources to close the current fiscal gap: $9 million from interest earned on ARPA (American Rescue Plan Act) funds and $6 million from the Hall of Records improvement fund. The budget also includes a $31.5 million budget mitigation fund that the CAO described as liquid one‑time funding set aside to respond to emerging pressures.

Key decisions and tradeoffs

- Positions: The recommended budget shows a net reduction of 57 positions, largely in child support services (22 deletions) and public health (28 deletions, some tied to eliminated grant funding). The CAO said some changes reflect eliminated grant revenues rather than layoffs.

- Reserves: General reserves remain a focus of the board; the budget does not add to the county's general reserves this year but keeps the $31.5 million mitigation fund in place.

- Revenue strategy: Staff emphasized conservative assumptions in most areas but said the property tax assumption is less conservative (4%). Prop 1.72 (the half‑cent public safety sales tax) and other restricted revenues were described as important but flattening, requiring close monitoring.

Departmental highlights

- The general fund appropriations are $2.62 billion; about $1.7 billion of that is funded by transfers from restricted special revenue and trust funds. Human services and justice services together will account for roughly 90% of general fund appropriations.

- Onetime capital and maintenance items funded in the adopted budget include courthouse parking structure maintenance ($1 million), tenant improvements at Probation's 200 West Pontiac Way ($2 million), and $2.4 million toward sheriff dispatch improvements.

Votes at a glance

The board recorded and approved the budget package and related fund resolutions for general fund, capital projects, debt service, internal service, enterprise, and special revenue/trust funds. Each item was approved by voice vote with no recorded opposition; one supervisor was absent for roll call at the meeting.

- General Fund and departmental budgets (agenda item 2): approved (motion/second on the record; no recorded opposition). - Capital projects (agenda item 3): approved. - Debt service (agenda item 4): approved. - Internal service funds and rates (agenda item 5): approved. - Enterprise funds / disposal sites and special districts (agenda item 6): approved. - Special revenue and trust funds (agenda item 7): approved. - Final adoption and closing of the budget hearings (agenda item 8): approved; the board then adjourned (agenda item 9).

What the board said next: Supervisors pressed department leaders about vacancies, recruiting and how the county will handle state and federal policy changes that could shift costs. Nerlin and budget staff said they will continue to monitor revenues tied to assessed value, sales tax and state/federal policy changes that may affect eligibility and program funding.

Ending: The adopted FY 2025'26 budget sets the county's operating plan for the year and lays out both onetime investments and service cuts; staff told the board they will return with midyear updates if conditions change.