Tulare County adopts $2.1 billion FY 2025–26 budget; board emphasizes debt reduction, reserves and public safety investments

Tulare County officials on Wednesday adopted the fiscal year 2025–26 budget, approving a $2.1 billion all-funds plan and a $1.32 billion general fund budget that county administrators said preserves reserves, reduces long-term debt and invests in public safety and capital projects.

County Administrative Officer Jason Britt presented the recommended budget to the Board of Supervisors, saying the county ended FY 2024–25 in a "strong financial position" and highlighted transfers and appropriations made in the prior year, including a $9 million transfer to the strategic reserve and $21.1 million toward prepayment of Millennium Fund bonds. For FY 2025–26, Britt said the county is proposing conservative revenue estimates and one-time uses for one-time funds.

Key numbers in the adopted plan include a $243.9 million discretionary revenue projection and a general fund net county cost of about $319.2 million. The budget sets the strategic reserve at roughly $57 million while maintaining a $5 million contingency.

Britt told the board the county will use the budget to fund several priorities: $23.1 million for fire staffing and related debt service; $19.8 million to service the pension obligation bonds; $14.3 million to establish a career-incentive pay program intended to encourage long-term employment with the county; and total employee compensation funded at $526.4 million.

The budget also designates one-time capital and program spending: $5 million for capital improvements; $3 million for an animal services expansion; $12.1 million (mostly grant-funded) for renovations at the behavioral health transformation site (Casa Grande); $8.8 million in grant funding for a behavioral health urgent care facility; an $8 million Goshen Fire Station project; $4 million for parks improvements; and $1.5 million for Visalia courthouse elevator work.

Britt and board members described a sustained effort to reduce long-term debt. The county’s long-term debt balance as of June 30 stood at about $190.7 million, a 16.3% decrease from the prior year. Board members noted the county has paid down nearly $100 million in debt over the last several years while continuing to fund operations.

Britt warned the board about two revenue pressures: a projected softening in sales and use tax receipts and an estimated annual reduction of about $10 million to receipts designated for public safety under Proposition 1.72 following a countywide sales tax audit. He also flagged potential state and federal cost shifts, including implementation and funding uncertainty for Proposition 36 and federal administrative changes that could increase county program responsibilities.

The budget funds operational changes to address illegal dumping and homeless encampments: expanding the county’s illegal-dumping cleanup program by adding a third crew in partnership with the sheriff and Solid Waste (with the board having waived certain landfill fees for tires and appliances in prior actions), and converting two part-time code enforcement positions in the Resource Management Agency to full-time to assist with encampment responses.

Britt also reported staffing levels: the recommended budget reflects 4,991.48 authorized positions, about 50 fewer than the prior year, with an estimated vacancy rate around 12 percent.

During the hearing board members praised the county’s fiscal approach. Supervisor Macari, Supervisor Townsend and others complimented the CAO and staff for reducing debt and strengthening reserves in recent years.

Votes at a glance (adopted actions during the hearing): - Terrabella Sewer Maintenance District FY 2025–26 final budget adopted — motion by Supervisor Townsend; second by Supervisor Valero; vote 5-0. - Tulare County Flood Control District FY 2025–26 final budget adopted — motion by Supervisor Shuckley; second by Supervisor Valero; vote 5-0. - Countywide FY 2025–26 recommended budget (all funds) adopted — motion by Supervisor Shuckley; second by Supervisor Valero; vote 5-0. The board also authorized the Auditor-Controller to make minor adjustments necessary to balance the final budget and approved CAO-requested personnel and pay items subject to meet-and-confer, including a 4% cost-of-living increase for elected county officers and the Board of Supervisors per ordinance.

The board concluded the public hearing and approved the recommended budget unanimously. County staff will proceed with final budget-balancing adjustments and implementation of the capital and program items funded in the adopted plan.