Kern County board receives $4.01 billion preliminary budget that preserves public safety, flags ARPA cliff for homelessness programs

The Kern County Board of Supervisors on June 24 received a preliminary recommended budget of $4.01 billion for fiscal year 2025–26 that county staff said preserves core services while reflecting shrinking revenues and the upcoming expiration of one-time federal and state grants.

County Budget Director Alex Alba said the proposed total represents a 1.7% decrease (about $70.7 million) from the current year and that the plan does not rely on general-fund reserves or include a July cost-of-living adjustment. "We are pleased to present you with a balanced preliminary recommended budget for fiscal year 25–26," Alba told the board.

The recommendation maintains investments in public safety and other Measure K priorities while identifying funding gaps for public health and programs supported by American Rescue Plan Act (ARPA) and other time-limited sources. County Administrative Officer Elsa Martinez told supervisors the board will get additional budget updates before final adoption in August and has several public hearings and an evening meeting scheduled for community comment.

Key figures and choices - Total preliminary recommended budget: $4,010,000,000 (a 1.7% decrease from prior year). - Discretionary revenue: $579.1 million, including $63.8 million from Measure K (unincorporated-area 1¢ sales tax). - No use of general-fund reserves and no July COLA included in the preliminary recommendation. - Net increase of $1.3 million in salaries and benefits to backfill critical vacancies in the sheriff’s office and to restore previously unfunded positions; the proposal also eliminates 114 vacant, unfunded positions (including 27 in Public Health). - The budget relies on $9.4 million in carry-forward realignment and Proposition 172 funds to support safety departments.

Measure K and local priorities County staff reviewed Measure K (the unincorporated-area 1¢ sales tax approved by voters) and recommended allocations that continue to prioritize public safety. Joseph Areola summarized Measure K outcomes since its approval: the county has used Measure K funds for deputy recruitment and retention, fire staffing and EMS support, library-hour extensions, animal spay/neuter programs, economic development, and a number of other local initiatives. For FY25–26 staff forecast $63.8 million in Measure K receipts and recommended continuing investments in the top public-safety categories, which account for more than 75% of the allocations.

Homelessness and one-time funding cliffs Staff repeatedly flagged the impending expiration of one-time funding as a critical risk. ARPA-funded programs that support homeless navigation, safe camping and emergency shelter (including the M Street Navigation Center and Hope on Heart) rely on funds that must be spent by December 2026. Alex Alba and Stacy Kuwahara (assistant CAO) told the board many county homelessness supports depend on time-limited grants and state programs that are not guaranteed in future budgets.

Kern specifics cited by staff: - 2025 point-in-time count: 2,606 people experiencing homelessness (a 2.3% decrease from the prior count). - M Street Navigation Center (operated by CAPK): since May 2020 has served 4,651 unique clients and exited about 10% into permanent housing; M Street also runs safe parking and safe camping programs. - Hope on Heart (noncongregate navigation center): opened March 2024; served 760 people and exited 23% to permanent housing. - Behavioral Health and Recovery Services (BHRS) annual programs supporting homelessness total roughly $10.5 million; staff warned Proposition 1 (state restructuring of MHSA) will redirect a significant share of local behavioral-health allocations into long-term housing subsidies, changing how short- and long-term housing supports are delivered.

Public health and other cuts Public Health faces a material reduction in state and federal funding ($12.5 million cited by staff). County staff said the department will eliminate 27 vacant positions, reduce noncritical spending and impose a soft hiring freeze to manage the cuts while protecting core clinical services.

Code enforcement, litter abatement and encampments Public Works Director Joshua Champlin described expanded code-enforcement and rapid-response litter-abatement work funded through general fund contributions, land-use fees and one-time sources. Department figures presented to the board included: - Private-property code cases opened this year: about 2,700. - County abatement spending (private/property/public): roughly $1.75 million this year. - Public-property actions: more than 700 encampments cleared, over 1,400 individuals encountered and roughly 1,500 tons of debris removed; staff documented 388 individuals who accepted some form of help following contact. Champlin said the county lacks an unlimited pool of contractors to perform expensive abatements (demolitions can exceed $50,000) and encouraged a measured staffing approach tied to available funding.

Board action and next steps The board voted 5–0 to receive the preliminary recommended budget and referred requested position deletions to Human Resources for processing. The CAO’s office will present updated revenue estimates once the assessor finalizes the roll on June 30 and will return with a final recommended budget in August for adoption.

Why this matters The plan balances immediate public-safety investments against dwindling discretionary growth, but relies on temporary federal and state funds for homelessness and a number of service expansions. Supervisors and staff repeatedly warned that maintaining programs funded by ARPA, PLHA and HAP will require new planning or ongoing local funding after those grants end, or the county will need to scale programs back.

Ending note Staff asked the board for policy direction on priorities, particularly which ARPA- or grant-funded programs—if any—the board wants to sustain from the general fund when federal/state sources end. The board scheduled further hearings in July and final budget adoption in August.