Yolo County staff outline $39.6 million FY25‑26 budget gap and options to shrink it to under $9 million

Yolo County budget staff on March 11 told the Board of Supervisors that the preliminary fiscal year 2025–26 picture includes a base gap of about $39.6 million and that, after proposed one‑time solutions and departmental reductions, staff have identified scenarios that would reduce that gap to under $9 million.

Chief Financial Officer Tom Haines reviewed economic context and county fiscal metrics and said departments submitted budget requests that, in the aggregate, require approximately $148.6 million of general purpose funding. "General purpose revenues are anticipated to be approximately $109,000,000," Haines said, summarizing the difference as a base budget gap of $39,600,000 and noting augmentations totaling roughly $16.1 million for new requests such as staff and vehicles.

Chief Budget Official Laura Liddicott said departments participated in reduction exercises and that staff developed an inventory of potential one‑time and ongoing solutions. She listed possible one‑time uses of fund balances—including prior‑year fund balance, tribal mitigation, and ARP contingencies—and stressed those are not recurring solutions. "We are looking for all one‑time solutions, including grant funding, provided it doesn't lead us to incur ongoing expenses in future years," Liddicott said.

Board members asked detailed questions. Supervisor Villegas pressed staff on where public‑comment priorities, such as IHSS contract negotiations, appear in the budget; staff said such items are included in long‑term thinking but exact amounts may not be finalized until CAO negotiations conclude. Supervisors also discussed vacancy savings and whether to eliminate long‑unfilled positions or rely on ongoing vacancy savings; staff said eliminating positions is a structural step while leaving positions unfunded is a short‑term tool.

Haines and Liddicott highlighted that property tax allocation leaves counties with a small share of each property tax dollar—"the county keeps just over 8¢ of every $1 paid in property taxes," Haines said—and that Yolo's share is among the lowest in the state. They warned that federal policy uncertainty, interest‑rate shifts and housing market changes could complicate forecasts.

Staff outlined how departmental reduction exercises and proposed one‑time solutions could narrow the gap from $39.6 million to about $9 million but cautioned that the remaining shortfall would require difficult choices, including deeper changes to staffing, contracts and programs. Options discussed included use of fund balance, departmental reductions (vacant positions, contract/service reductions), fee increases and targeted revenue proposals; staff noted broad revenue options such as a county sales tax would require longer timelines.

The board requested additional, more detailed workshops focused on differentiating discretionary general fund programs from mandated programs and on department‑level impacts of specific cuts. Staff said they will return April 29 with another budget development update and aim to present a balanced recommended budget in early May and the adopted budget in June.

Key figures cited by staff

- General purpose revenues projected: approximately $109,000,000. - Department requests (status quo staffing, operations): approximately $148,600,000. - Base budget gap: approximately $39,600,000. - Augmentations requested by departments: approximately $16,100,000. - Staff estimate of one‑time fund balance available for recommended budget: approximately $9,000,000.

Board members and staff also discussed the composition of vacancy counts (248 total vacancies reported; roughly 42 general‑fund positions among those) and the tradeoffs between vacancy savings and permanent position eliminations. Laura Liddicott said the county is pursuing a multiyear approach that blends one‑time and ongoing solutions to move toward a structurally balanced budget.

The board did not take a final vote on budget decisions at the March 11 update; staff sought direction and asked for further feedback as they refine proposals for the next update and the recommended budget.