Tom Haynes, Yolo County chief financial officer, told the Board of Supervisors that preliminary analysis for fiscal year 2025‑26 shows a projected general‑fund deficit in the range of $8 million to $15 million and that longer‑term forecasts show widening gaps without structural changes.

Haynes said the county has relied increasingly on salary savings and fund balance to balance recent budgets; those cushions have declined and are not a sustainable solution. He emphasized that rising pension contributions and salary market pressures are principal drivers of expenditure growth, not a near‑term revenue collapse.

Key points Haynes reported:

- The “initial starting base budget gap” — the difference between departments’ baseline expenditure requests and projected general‑fund revenues before new positions or program additions — has grown for three consecutive years.

- The county has used unfilled positions (salary savings) extensively to balance recent budgets; this practice is less sustainable as vacancy rates decline.

- A five‑year general‑fund forecast prepared by the Department of Financial Services shows a FY2025‑26 shortfall of roughly $8 million–$15 million, with larger deficits projected in later years absent structural changes.

Haynes said staff has begun an exercise asking departments to identify options to reduce net county cost by 7 percent. He said that exercise is intended to provide the board with concrete options and service‑impact analyses; staff estimated the countywide 7 percent exercise could represent between $8 million and $10 million of net‑county‑cost reductions, though impacts vary by department.

Interim county staff reported 260 vacant positions as of a December 12 personnel count; supervisors asked whether holding vacancies open or eliminating positions should be the board’s policy choice. Haynes and interim administrative staff said both are options, but emphasized that eliminating long‑held vacancies would be a likely part of any structural solution while noting tradeoffs for restoring positions later.

Next steps: staff will return on Jan. 28 with budget principles and a proposed calendar, hold a budget workshop in March (March 10–11), present a budget development update in April and release a recommended budget for public hearing on June 10.

Ending: Supervisors and staff emphasized this will be a multiyear process requiring policy choices about priorities and possible revenue or program changes; staff said it will present options with impact analysis for the board’s consideration.