Orange County officials present tentative FY2026 budget, warn of growing long‑term funding gap

County budget staff presented a tentative Fiscal Year 2026 operating plan on July 16 that proposes a total countywide budget of roughly $8.2 billion for the coming fiscal year, while warning commissioners that multi‑year financial models show a potentially large funding gap over the next five years if current trends continue.

Kurt Peterson, the county’s budget presenter, told the Board the county remains in good financial condition and retains strong credit ratings, citing steady reserves, long‑range revenue and expenditure modeling, and ongoing revenue monitoring. But he emphasized the difference between next‑year affordability and longer‑term pressure: the tentative FY2026 plan balances the coming year’s spending but shows a structural “funding gap” that grows in later years as fixed costs, capital projects, and slower revenue growth converge.

Peterson said the FY2026 proposed total — presented as $8.2 billion — includes large interfund transfers…