Chief Deputy County Administrator Jennifer VanStein presented the FY2025‑26 first quarter budget report, which showed an adjusted county budget of about $3.3 billion and a projected net county cost savings of approximately $20.1 million driven largely by vacancy savings across departments.

VanStein recommended several technical appropriations increases (about $26.9 million total, staff said fully funded through increased revenues) and the formal creation of a separate Enterprise Resource Planning (ERP) replacement project fund. The board previously set aside $40 million for ERP in the 2023‑24 budget; VanStein said the CAO’s office now recommends moving remaining ERP set‑aside resources into a dedicated fund for clearer tracking. The presentation referenced a remaining transfer figure as presented during the meeting; staff said a transfer would be made to the new ERP fund and follow‑up reporting would occur.

Human Services Agency Director Chris Woods told the board the HSA is projecting a net county cost overrun of about $10.8 million because revenues (such as realignment funds) have not kept pace with program cost increases; he said the agency reduced overtime, paused some hiring and delayed projects to mitigate the shortfall. Woods noted that HSA serves a large caseload — the presentation cited 269,262 county residents receiving Medi‑Cal and 1,416 allocated HSA positions — and that flat or declining realignment revenues over multiple years have stressed the budget.

San Joaquin County Hospital leadership provided an early‑quarter snapshot showing a projected net loss (presentation cited about $33.1 million) driven by part‑time labor, overtime and other operational overruns; leaders said the hospital will use fund balance and pursue operational changes (discharge planning, case‑management and clinical documentation improvements) to reduce the estimated shortfall and may return at midyear with adjustments.

Board members discussed reserve options and the need to avoid spending one‑time savings in the face of state and federal funding uncertainty. The board approved the recommended appropriation adjustments, establishment of the ERP fund and a $13.7 million transfer from county facilities fees contingent on the board’s acceptance of the staff recommendations.