Board approves $1 million in transient‑occupancy tax grants with district‑level adjustments

The Sacramento County Board of Supervisors on June 10 approved the county’s FY2025‑26 transient‑occupancy tax grant program recommendations, authorizing $1 million in awards to nonprofit organizations and delegating execution of individual funding agreements.

The TOT grant program, funded by a 12% hotel room tax in unincorporated Sacramento County, provides $1 million each year: $500,000 for the highest‑ranking, merit‑based applicants and $500,000 split as $100,000 per supervisorial district. Amanda Thomas, the county’s chief fiscal officer, told the board the application period produced 289 submissions, 258 of which met eligibility requirements — a roughly 75% increase in applications over the prior year. She said the competitive process is often oversubscribed; the board letter indicated requests totaled about $8.8 million against the available $1 million.

Board action and amendments: After public testimony and discussion, supervisors agreed to amendments to district allocations to increase funding for the Sacramento Literacy Foundation’s project placing books in the hands of low‑income children seen at WellSpace clinics. Supervisors Patrick Kennedy, Phil Serna and others described options for reshuffling district‑directed awards and using community service funds to partially close a remaining funding gap for the literacy proposal. Supervisor Desmond moved approval of the full recommendation package with the agreed adjustments; the board voted unanimously to adopt the grants and authorize the county executive to execute the related agreements.

Why it matters: The program supports local nonprofits that provide services ranging from emergency meals and child care for unhoused mothers to health care and reentry services. Thomas said prior grant cycles have paid for programs such as Meals on Wheels emergency shelf‑stable meals, child care for homeless mothers, and integrated health‑care services for people experiencing homelessness.

Public input and process concerns: Eight speakers addressed the board, representing organizations that applied for TOT funds; some thanked the board for awards and others asked for reconsideration or additional support. Supervisors and staff discussed process improvements — including giving districts additional time to consider how to distribute district‑directed funds and continuing outreach and pre‑application workshops to help smaller organizations submit competitive proposals.

Ending: The board’s action authorizes staff to notify applicants, prepare funding agreements for awardees and proceed with contract execution. Several supervisors asked staff to return with suggested process changes for future rounds to improve timing and equity between merit and district‑directed awards.