Humboldt County proposes $629.7M budget for 2025‑26; board lifts hiring freeze, directs Measure O staffing

Humboldt County officials presented a proposed $629.74 million spending plan for fiscal year 2025‑26 on June 3 and the Board of Supervisors voted to receive the proposal, lift a hiring freeze on already‑budgeted positions and direct staff to plan administrative staffing for the new local roads and transit sales tax (Measure O).

The proposal, assembled by the County Administrative Office and Deputy CAO Jessica Maciel, includes total recommended spending of $629,740,000 — an increase of about $21.5 million (3.5%) from the current adopted year. The general fund allocation proposed is $157.89 million; the CAO's office recommended placing $3 million into the general reserve and setting aside a $5 million contingency for labor negotiations as part of efforts to stabilize the county's finances.

Deputy CAO Maciel told the board that staff used the five‑year forecast and midyear direction to prepare a status‑quo budget and recommended steps intended to improve long‑term sustainability. "These are important steps towards our fiscal sustainability in the long term," she told supervisors.

The proposed budget reflects adjustments and one‑time items: Measure O (the new local half‑cent sales tax for roads and transit) is budgeted at $27 million in gross receipts projection for the multi‑year plan, with the CAO recommending a $23.4 million allocation to Public Works and $3.6 million to Humboldt Transit Authority in 2025‑26. County staff also flagged several negative fund balances that staff continue to monitor, notably the DHHS Behavioral Health fund (estimated negative ~ $26.3 million) and the Road Fund (estimated negative ~ $4.2 million), which county staff said they will continue to address through planned Measure O receipts and other actions.

Board members discussed administrative staffing tied to Measure O delivery, and several department heads urged the board to add capacity to deliver projects and to address facility maintenance backlogs. Public Works Director Tom Mattson said his department can put Measure O dollars to work this year but needs staff and, in some cases, competitive salary adjustments to recruit architects and engineers. "We are really fortunate with our relationship with CAL FIRE and others," Mattson said, but emphasized that capital delivery requires additional capacity.

After discussion, the board voted to receive the proposed budget and provided two clear directions to staff: rescind the standing hiring freeze on existing, already‑budgeted positions (exceptions for newly requested positions would still require Board authorization); and plan for administrative staff allocations needed to implement Measure O (the CAO's office outlined options for an administrative analyst to split work across Measure Z and Measure O, and suggested purchases and contract administration support in Auditor-Controller, County Counsel and CAO offices to be brought forward through cost allocation). The Board vote to receive the proposed budget and grant the staffing direction carried 5‑0.

County staff also recommended, and the CAO will present for Board consideration at budget hearings, a CalPERS unfunded liability prepayment analysis: the county could save approximately $1.2 million by prepaying the minimum required pension contribution for the year; staff told the board the County Treasury could earn less on cash than the prepayment discount, making prepayment financially attractive.

The board will hold public budget hearings beginning Monday, June 9, before final adoption later in June. The CAO reiterated that departments worked through difficult circumstances to submit balanced proposals and thanked County staff for extended hours during the budget process.