Madera County adopts $578.4 million budget, leaves slim reserve and flags $4M LATCF as contingency

The Madera County Board of Supervisors voted 5-0 on June 9 to adopt the county'wide fiscal year 2025-26 budgets, approving a proposed operating budget of $578,436,287 and a package that includes general, special revenue and special districts budgets.

County Chief Administrative Officer Jay Varney and County Administrative Office staff presented the proposal, which reflects an overall increase of just over $47 million across all funds and projects county revenues just above $108 million for the year.

The adopted plan reduces the number of funded positions to 11,754.75, a net decrease of 22.25 positions from the prior year; administration said 41 positions were unfunded to meet net county cost targets and that the unfunded positions are currently vacant. The budget continues a long-standing allocation of discretionary funds to public safety; staff reported 73% of discretionary spending is dedicated to public protection.

Why it matters: supervisors and staff said the county is close to fiscal balance but still faces a small operating deficit and a near-depleted reserve. The county'wide fund balance reserve would fall to an estimated $319,000 at year-end under current projections, and staff identified roughly $4 million in Local Assistance and Tribal Consistency Funding (LATCF) from the American Rescue Plan Act as a flexible source the board could use to plug shortfalls.

Key figures and drivers - Proposed operating budget: $578,436,287 (across county funds). - Projected county revenues: just over $108,000,000 (a projected increase of about $5.1 million, or 4.6%). - Net funded positions: 11,754.75 (net decrease of 22.25); 41 positions were listed as unfunded and described as currently vacant. - Projected operating deficit in the proposed budget: $1,200,000; conservative salary-savings assumptions reduce projected year-end deficit to $748,000; projected year-end fund balance reserve $319,000. - LATCF (described by staff as ARPA-authorized flexible funding): just over $4 million available as an option to offset deficits; staff did not recommend its use at adoption but discussed it as a contingency.

Staff and board briefing CAO Jay Varney opened the presentation, and Joel Begay, County Administrative Office, provided slides and analysis. Begay and Jay Varney told the board they have reduced the budget deficit from an adopted $6.8 million in FY2024-25 to the figures before the board through hiring freezes, selective unfunding and efficiencies.

Begay highlighted several cost drivers: retiree health premiums (a roughly $1.1 million year-over-year increase, attributed in part to national-level Medicare/prescription benefit changes), timing differences in election reimbursement, and a reversion to higher CAL FIRE cooperative agreement costs (roughly $700,000 increase compared with a one-time state reduction in the prior year).

Policy choices and board discussion Supervisors pressed staff on the fund balance, how and whether LATCF should be treated as part of reserves, and on longer-term revenue prospects. Begay explained LATCF is budgeted as a special revenue fund and, under county practice and the LATCF rules, is not automatically included in the general fund reserve; the board can authorize loans or transfers between funds following a formal process.

Multiple supervisors urged continued hiring freezes and strategic use of attrition to keep payroll cost growth manageable. Several supervisors also asked that administration pursue contract renegotiations for specialized services and examine organizational consolidations where possible.

Items called out by staff and supervisors included: - The county anticipates only modest revenue growth in sales and property taxes, noting declines in agricultural property valuations offsetting residential gains in some areas. - A substantial portion of budget increases is non-discretionary or subvented (state/federal pass-through) spending, including health and mental-health programs. - The county's retiree health and liability insurance premiums are rising and materially affect the general government budget.

Public engagement and next steps The board opened public comment during the hearing and left the public hearing on some special revenue items open while other hearings continued. Administration noted the county will not finalize all budgets until special districts hearings conclude; the board adopted the county budgets after the day's hearings.

Vote and formal action On item 5(a) the board adopted a resolution approving the FY2025-26 county budgets, including general, special revenue and special districts budgets. The motion passed on a 5-0 roll-call vote. The resolution text was filed with the clerk as part of the meeting record.

What the budget does not decide Staff cautioned the board that using LATCF to plug recurring operating shortfalls would reduce the flexibility of those one-time funds. Begay said any transfer or loan between special revenue and general funds requires a separate, documented action by the board with repayment terms. No such loan or transfer was adopted as part of the budget vote.

Ending With the resolution adopted, staff said departments will continue quarterly revenue monitoring and that administration will bring recommendations later in the fiscal year if the board wants to authorize use of LATCF or other one-time funds to cover structural shortfalls. Supervisors asked administration to pursue contract renegotiations and to accelerate fee studies and other measures to shore up recurring revenue.