Board adopts FY25‑26 revised budget; directs $10M to roads, approves parks boat and holds audit‑payback reserve

Sacramento County supervisors adopted the fiscal year 2025–26 revised recommended budget Wednesday and voted on several related spending adjustments and reserve actions.

The board approved the revised recommended budget and associated adopted budget resolutions, as well as a separate, earlier item to adopt the Sacramento County In‑Home Supportive Services (IHSS) Public Authority revised final budget for FY25‑26. The IHSS Public Authority budget (Item 2) passed unanimously during the morning session.

At the main budget hearing, Amanda Thomas, the county’s chief fiscal officer, summarized the changes that produced a $9.2 billion total appropriations package across all funds and explained limited discretionary capacity in the general fund. Thomas said the county received a $19 million interim cost settlement tied to behavioral‑health cost reports; staff recommended holding that amount in an audit report payback reserve because final audits remain pending and could produce recoupments. She described a $9 million general‑fund contingency retained in the budget and noted the county’s non‑dedicated discretionary reserves are well below policy targets (about $214 million, or roughly 5.5% of discretionary revenue before later board actions).

After discussion and public comment the board approved a set of staff recommendations and two board‑led changes. The board redirected $10,000,000 from the Service Stability Reserve to the Roads Fund to accelerate pavement maintenance and preservation work; that motion passed with Supervisors Kennedy and Rodriguez voting no. The board also approved approximately $25,000 to purchase a zodiac‑style boat for the County Parks regional waterways unit (about $17,980 from the discretionary release and about $7,020 from a parks restricted revenue fund); that vote passed unanimously.

Staff noted the $10 million transfer reduces the county’s non‑dedicated discretionary reserve total from about $214 million to about $204 million (reducing the reserve share of discretionary revenue from about 5.5% to about 5.2%). Thomas said the revised budget continues to hold the $19.0 million interim settlement in the audit report payback reserve and maintains a $9.0 million general‑fund contingency to address midyear funding needs. The board also maintained prior‑approved base growth items and limited term position funding described in the budget packet, including 5‑month incremental funding for jail intensive‑outpatient expansion required by the Mays consent decree; staff warned next year’s baseline will reflect the full‑year cost of that midyear expansion.

The board considered a request from the City of Isleton for an $800,000 10‑year loan but staff recommended against the loan because of repayment risk and the effect on county reserves; the board did not approve the loan and directed staff to continue discussions and return with any further analysis. County staff emphasized that a loan would reduce funds available for other uses and that the city has a history of delayed audits and budget gaps that increase repayment risk.

Public comment during the budget hearing focused heavily on criminal‑justice and public‑health priorities. Speakers from Decarcerate Sacramento urged the board to invest in diversion, behavioral health staffing and reentry supports rather than increased sheriff staffing or jail capital projects; public commenters referenced the Mays v. Sacramento consent decree and pressed for investments that would reduce jail populations and expand community‑based care.

Votes at a glance

- Approve Sacramento County IHSS Public Authority FY25‑26 revised recommended budget — Outcome: approved unanimously (members present). - Adopt FY25‑26 revised recommended budget and adopt budget resolutions (Item 4 as revised) — Outcome: approved unanimously. - Transfer $10,000,000 from Service Stability Reserve to Roads Fund for pavement maintenance — Outcome: approved (Kennedy and Rodriguez voted no). - Approve $25,000 (approx.) for a Parks zodiac boat (regional waterways unit) — Outcome: approved unanimously. - City of Isleton $800,000 loan request — Staff recommended not to approve; board did not approve and directed additional analysis.

Why this matters: the board adopted a large, multi‑fund budget while using limited discretionary resources to address near‑term infrastructure and park‑safety needs. The transfer to roads reduces a key reserve but accelerates pavement work; the audit‑payback reserve treatment of a $19 million interim settlement preserves funds in case state audits require recoupment.

Speakers who appeared during the budget item included Amanda Thomas, Chief Fiscal Officer; County Executive David (County Executive); Mayor of Isleton (name provided at the hearing); supervisors Phil Serna (chair), Patrick Kennedy, Rich Desmond, Rosario Rodriguez and Pat Hume; and public commenters from Decarcerate Sacramento and other community groups. The board unanimously approved the amended budget resolutions at the afternoon session.