Kings County supervisors review $520.1 million budget; approve realignment transfers and temporary "due pass" to finalize the plan

HANFORD, Calif. — Kings County administrators on Aug. 25 presented a final fiscal year 2025–26 budget that county staff said totals $520,144,384 across all funds and includes a general fund operating budget of about $401.2 million. After a daylong review of department changes and capital projects, the Board of Supervisors approved two 10% transfers among state realignment subaccounts to cover social services shortfalls and voted to give staff temporary approvals to finalize dozens of budget units before returning for formal adoption.

County Administrative Officer Kerrio Martinez told the board, “This marks my ninth budget cycle year presented to your board,” and outlined the major drivers changing the final budget from the recommended version: a $20.2 million increase tied to implementation of a salary survey by Kaufman Associates, rising retirement costs ($2.7 million), and higher self-insurance liabilities ($3.6 million). Martinez said department-level adjustments and one-time receipts produced a balanced recommended budget, and the board was asked to grant temporary "due pass" approvals that allow staff to make final updates and return with a resolution for adoption on Sept. 23.

Why it matters: County staff said the budget reflects continuing pressure from flat realignment revenues, the phase-out of one-time federal relief funds, and higher personnel costs that together increase reliance on fund balance. Matthew Boyette, deputy county administrative officer, cautioned the board the county remains well below recommended reserve levels: “The Government Finance Officers Association ... recommend a 17% reserve, based on your operating budget,” Boyette said, and Kings County’s reserves currently sit near 5% of its operating budget.

Most important facts

- Total countywide budget: $520,144,384 (all funds). General fund expenditures shown in presentation: $401,230,000. - Contingency and fund balance: the final recommended contingency line is $10,914,438, but staff said about $7 million of that is one-time funding (FEMA reimbursement and debt retirement), leaving an operational contingency of roughly $3.8 million if those items were excluded. - Position changes: final allocations show 1,693.51 full‑time equivalents (FTE), a net decrease of 16 positions from the adopted FY24–25 total; departments reported a mix of adds, deletes and reorganizations to offset salary cost increases. - Major one-time/state reimbursements: county expects a $3,900,000 state reimbursement for the juvenile hall remodel closeout; ARPA obligations were reported fully obligated and largely complete.

What the board decided

- Transfer of realignment funds: After a public hearing on a staff request to move funds among state realignment subaccounts, the board approved a 10% transfer from the public health realignment and a 10% transfer from behavioral health realignment into the social services realignment trust to help cover caseload growth and entitlement shortfalls in the Human Services Agency. The board recorded four votes in favor (Joan Neves, Richard Valle, Doug Verboom and Rusty Robinson); one supervisor was absent.

- Temporary "due pass" approvals: The board approved a series of temporary due passes for each budget unit presented during the hearing — a procedural motion that allows staff to make final adjustments and to return with the formal adoption resolution on Sept. 23. The board approved the temporary due passes by roll call (same four members present voted in favor; one absent).

Departments, revenues and cost drivers

Presentations by administration and department analysts traced the broad causes of the gap between recurring expenditures and recurring revenues:

- Insufficient growth in the 1991 realignment allocation was cited repeatedly; staff said that lower realignment growth means counties do not receive enough revenue to cover base obligations for health and human services, which increases general fund pressure. - The county absorbed $20.2 million in salary and benefit increases from the Kaufman Associates compensation study and saw a $2.7 million increase in retirement costs. - Liability and self‑insurance costs rose sharply: department presentations cited higher claims and the need for increased reserves. - One‑time and transitional items: a FEMA reimbursement tied to a Homekey project and the payoff of pension obligation debt inflated contingency in FY25; staff noted the contingency includes roughly $7 million of such one‑time items.

Key program and project notes

- Human Services Agency: presenters said entitlement caseloads are outpacing designated revenue and that the board-approved 10% transfers of realignment funds were intended to reduce an estimated $1,071,918 general‑fund hit that would otherwise occur. - Capital projects: staff outlined a multi‑year capital program that includes an evidence storage facility, fire station projects, a Kettleman City curb/gutter/sidewalk project, and library remodel grants for Hanford and Lemoore (state Building Forward awards). The recommended capital project list also added a sheriff’s car‑wash project earmarked as an inmate work program and revenue source for inmate welfare funds. - Public facility (impact) fees: staff recommended a 1.93% inflationary increase to public facility fees based on the Engineering News‑Record construction cost index; staff opened a public hearing and presented the five fee categories and the required exhibits and 5‑year reporting schedule.

Board and public process

The hearing included department‐by‐department presentations (22 departments, approximately 107 budget units) and multiple opportunities for the public to comment; no written correspondence or speaker cards were submitted for the agenda items discussed in the transcript. After discussion the board approved the requested realignment transfers and the temporary due pass motions allowing staff to finalize changes and return with formal adoption documents.

Quote

Kerrio Martinez, county administrative officer: "This marks my ninth budget cycle year presented to your board."

Matthew Boyette, deputy county administrative officer: "The Government Finance Officers Association ... recommend a 17% reserve, based on your operating budget."

Ending

Staff will use the temporary approvals granted by the supervisors to finalize department and capital project entries and bring a formal adoption resolution back to the Board on Sept. 23, 2025. The board’s actions on Aug. 25 put the county on a path to finalize a balanced FY25–26 budget while noting structural reserve and recurring‑revenue concerns that may require future policy choices.