Orange County presents $10.8 billion FY 2025-26 budget; board approves straw votes amid staffing and IHSS pressure

Orange County officials on June 10 presented a recommended $10.8 billion fiscal year 2025-26 budget and took nonbinding straw votes on program-level recommendations ahead of a final adoption vote scheduled for June 24.

Kim Engelby, the county's chief financial officer, opened the presentation saying the recommended budget is balanced and that "you will see a balanced budget that meets the planned objectives for the county for the upcoming year." County staff and the CEO's office emphasized the plan preserves current service levels while acknowledging state and federal funding risks that could require midyear adjustments.

Budget staff said the plan organizes $10.8 billion across seven programs: community services (about $3.8 billion), infrastructure and environmental resources (about $2.0 billion), and public protection (about $1.9 billion). Juana Cosma, budget and finance director, summarized the recommended allocations and noted that roughly $1.2 billion of the total is general purpose, discretionary revenue.

The presentations included several restore and expand requests. Notable items the board discussed were: a $62 million overtime restore request for the Sheriff's Department (chiefly for jail, patrol and departmental operations), funded restore augmentations totaling about $88 million in Program 1 public protection, and a grant-funded workers'rights enforcement (wage-theft) unit in the District Attorney's office that staff said would bring positions with no additional net county cost.

Board members pressed staff for additional monitoring of overtime vs. hiring. Supervisor Sarmiento said the overtime numbers must be examined for cost-effectiveness and fairness to staff and requested that the CEO's office provide ongoing analysis. Undersheriff Jeff Hallock told the board the department closely monitors overtime and that some overtime savings reflect the cost of using overtime to handle short-term needs rather than hiring full-time positions.

Public commenters focused heavily on the in-home supportive services (IHSS) program and the county's workforce. Caregivers and union representatives told the board that IHSS saves the county money compared with institutional care and urged higher wages and expanded benefits. "This program should be a top priority in your budget," IHSS provider Tanya Ferrucci said, urging the board to "start investing in the people who make those savings possible." Several speakers told personal stories showing the program's role in keeping vulnerable residents at home.

Unions and department representatives also raised vacancy and recruitment concerns. AFSCME and OCEA speakers urged the county to move beyond headline vacancy rates and analyze workload, case complexity and bottlenecks; AFSCME field representative Eric Lindemeyer said the published vacancy rate "does not tell the whole story" because it does not capture case complexity or daily staff availability.

Budget staff summarized final adjustments and directed that the County Budget and Finance Office return with year-end reconciliations in September and a final adoption item on June 24. The CEO's office also committed to review whether sheriff overtime is more cost-effective than additional full-time hires and to continue public outreach during the August strategic financial plan process.

The board's nonbinding straw votes approved the CEO's recommended base budgets for programs 1 through 7; staff will compile the final budget package for formal adoption at the June 24 meeting.

What happens next: The board will receive the compiled final budget and the staff-recommended items for formal adoption on June 24. The CEO's office will return with September year-end reconciliations and additional outreach starting in August.

Sources: County CFO Kim Engelby; Budget & Finance Director Juana Cosma; Budget presentations and public comments at the June 10, 2025 Board of Supervisors meeting.