Yolo County adopts FY 2025-26 balanced budget, approves staffing cuts in HHSA amid Oakdale fire costs

The Yolo County Board of Supervisors approved the county's adopted budget for fiscal year 2025-26 during a public hearing on Sept. 23, moving to balance projected shortfalls while setting aside funds for costs tied to the Oakdale fire and adopting several administrative staffing reductions in Health and Human Services.

County Chief Financial Officer Tom Haines told the board the adopted budget is balanced and that general-purpose revenues rose slightly, driven mainly by property-tax growth. Haines said the county met its prior fund-balance estimate and ended the prior year with about $9.88 million in unassigned general-fund balance, but cautioned that the county's fund balance has declined for several years and remains below policy targets.

The budget directs $750,000 from county sources for direct costs tied to the Oakdale fire response (security, fencing, debris removal and similar expenses) and budgets $964,000 for district attorney investigations related to that incident, mainly to hire temporary staff to backfill prosecutors and investigators dedicated to the case. Staff said roughly $500,000 in Oakdale-related costs already have been spent by county departments.

Haines said county staff recommended repurposing a prior planned contribution from the Chula Vista Fund to the general reserve so those Chula Vista funds can instead pay for Oakdale-related expenses. He told the board that the repurposing avoids an immediate draw on the general reserve but means the county will not add the planned contribution to reserves this year.

Why it matters

Board members and staff repeatedly framed the adopted budget as a stopgap that avoids immediate service cuts but does not solve a structural budget deficit. Supervisors noted pressure from rising salary and benefit costs, county facility repair needs and state and federal funding changes, including an ongoing transition of Mental Health Services Act funding to a new Behavioral Health Services Act.

The board accepted a package of recommendations that included a modest $525,000 general fund contingency (about 2.2% of general fund expenditures, below the board's 1–3% policy guideline for contingencies) and no new contribution to long-term reserves. Staff said the decision preserves current services for now but leaves the county vulnerable if additional one-time costs or revenue shortfalls arise.

Staffing and HHSA reductions

As part of the adopted budget, the board approved eliminating multiple vacant positions in the Health and Human Services Agency (HHSA). County staff and HHSA Director Monica Morales said the listed positions are vacant and that the department reviewed program needs and concluded the roles could be removed or that work could be reassigned. Morales told supervisors the cuts will have operational impacts but are necessary in the face of long-term funding shortfalls.

In discussion, supervisors pressed for clarity about which client-facing duties might be affected and whether the county can prioritize positions that would increase state reimbursements (for example, Medi-Cal billable services). HHSA said some job titles were funded previously with temporary COVID-19 grants and others have been vacant for multiple years; staff said reinstating positions later would require a separate board action.

The board voted to approve staff's recommended eliminations with one exception: supervisors agreed to keep the director of public-health nursing position on the county's authorized position list but leave it unfunded for now so the board and agency can further review whether to restore funding later.

Budget vote and related actions

During the meeting the board also: - Approved the adopted County of Yolo FY 2025-26 budget and related public-authority and fire-district budgets. - Approved non-general-fund additions and several capital and operational items, including funding for the Pacifico housing project and replacement of sheriff patrol vehicles (costs offset by sheriff special funds).

Board members said they plan additional follow-up on revenue-enhancement options and on HHSA budget choices in coming months.

Ending

Supervisors said the adopted budget reflects difficult trade-offs: the county maintains baseline services for now while postponing a planned reserve contribution and accepting the risk that would lower reserves as a percentage of spending. County staff and the board signaled further work ahead to close structural gaps and to pursue potential state, federal or other funding solutions.