Library expansion, ARPA projects and roads emerge as central tradeoffs in San Benito County budget talks

The June 9 budget hearing highlighted a set of large one‑time projects that staff and the Baker Tilly consultants said help explain why the published FY2025‑26 appropriations appear much larger than the county’s baseline operating needs.

Staff identified approximately $28 million in proposed transfers out and capital allocations for FY2025‑26, including a library expansion project, sheriff communications, facility repairs and a set of prior ARPA projects. County staff said the library portion of the county’s plan included roughly $4.7 million in state aid plus a general‑fund contribution that staff presented as part of the recommended budget; the recommended budget also listed about $9.1 million in transfers related to the library expansion schedule in the proposed CIP materials.

Public works staff explained the practical limits of pausing projects this year. "If we defer the general‑fund roads money now, we will lose the construction season," Public Works administration said, noting that some state capital opportunities and storm‑repair grants (a state Housing and Community Development allocation discussed in the hearing) may not be available quickly enough to replace general‑fund transfers. Steve Toler and county public works staff briefed the board that an HCD program could provide about $11 million for eligible infrastructure but that the county would have to assemble projects, designs and environmental clearances to apply; projects under that program would likely be ready to move only in 2026 construction season if approved.

The library project is funded in part by a state library grant. Public works staff cautioned the board that down‑scoping the project or pausing it would require explicit consultation with the state grantor and a renegotiation of the grant scope. "We’d have to go back to the state and show a revised scope if we cut the county’s match," a staff member said.

Board members disagreed about which capital items to prioritize. Several supervisors said road projects are a top local priority and requested that board direction retain the county general‑fund roads allocations for the upcoming construction season; other supervisors said the library and several ARPA projects are important community investments and urged the board to examine those on a project‑by‑project basis rather than make blanket cuts. The final board direction at the June 9 hearing asked staff to prepare a placeholder FY2025‑26 budget that keeps roads and an essential sheriff communications project active while identifying other ARPA and capital projects to temporarily unfund pending a more detailed review.

Public commenters including the county library manager and city and county staff urged the board to consider grant timelines and the practical consequences of pausing projects during the construction season. Manny Gonzalez (temporary assistant CAO assigned to library) told the board the library team was willing to work with the budget team to identify realistic scope reductions if that is the board’s direction, but he also warned that state grant and project timelines make an immediate pause disruptive.

Staff and consultants said the treatment of large one‑time projects in the county’s published budget makes the county’s year‑to‑year published appropriations appear much larger than the underlying operating budget. They urged clearer segregation of one‑time capital spending from the operating baseline so the board and public can see the county’s ongoing structural position.