San Diego County unveils $8.62 billion recommended budget, proposes $100 million boost for behavioral health

San Diego County Chief Administrative Officer Ebony Shelton on Tuesday presented the county's recommended operational plan for fiscal year 2025-26, proposing an $8.62 billion spending plan that the county describes as balanced and focused on behavioral health and core services.

Shelton said the plan represents a 1% increase over the current adopted budget and would support 20,281 staff positions while prioritizing investments in behavioral health, public safety and workforce retention. "The recommended budget for fiscal year 2025-26 is balanced and proposes to invest $8,620,000,000 in county programs and services," Shelton told the Board of Supervisors during the June 3 budget hearing.

The nut of the proposal is an overall modest increase while using one-time strategies and enterprise-wide efficiencies to respond to slowing revenue growth and uncertainty about future federal and state funding. The plan would add $100 million to behavioral health services to expand substance-use and mental-health treatment capacity and proposes $167 million in workforce investments countywide.

County Chief Financial Officer Joan Brocke and group general managers described the budget's structural choices. Brocke said a projected funding gap identified last winter prompted the county to prioritize mandated services, review discretionary programs and pursue consolidation and efficiency measures. Brocke told the board the recommended plan offsets some growth with reductions in one-time capital spending and by repurposing vacant positions.

Health and Human Services Agency deputy chief administrative officer Dr. Kim Giardina said HHSA's recommended budget is $3.5 billion, a 1.9% increase driven by behavioral health spending and Medi-Cal program activity. Giaradina said federal and state sources make up a large share of HHSA's revenue and warned that changes at those levels could require future adjustments.

Public safety, which the presentation said would receive $2.9 billion in the recommended plan, would see investments in emergency medical services capacity, a new night-flying helicopter for air response and a recovery and community engagement unit in the Office of Emergency Services, according to the public safety presentation. The county's finance and general government group described nearly $987 million in its proposed budget for facilities, technology and internal service funds.

Officials repeatedly noted the budget's exposure to federal and state policy changes. Brocke said the county would return to the board with options if revenue assumptions shift. The CAO's office set the process timeline: budget hearings to continue through June 12 (change letters due by 5 p.m. June 12) and budget deliberations and adoption scheduled for June 24.

The presentation prompted questions from supervisors about program reductions, staffing changes, and the potential impacts of state and federal policy moves on eligibility for benefits. Shelton and agency leads said many staffing reductions would come from vacant positions or reorganizations and that managers were planning to preserve mandated service levels.

The board did not take action on the plan at Tuesday's session; the hearing continues and the CAO will issue a revised recommended budget following public input.

Ending: The recommended plan frames the county's priorities for the next two fiscal years and emphasizes behavioral health and workforce investments while building contingency for uncertain federal and state funding. The board will continue hearings and must adopt a final budget by its June 24 adoption date.