Yolo County adopts budget principles and directs staff to pursue $15M reductions next year

The Yolo County Board of Supervisors voted Jan. 27 to adopt budget principles and a staff-recommended approach to address a structural deficit, directing departments to prepare reduction options that together aim to reduce general-fund expenditures by about $15 million for FY26–27.

Tom Haines, the county’s chief financial officer, presented a five-year general-fund forecast showing a projected deficit of roughly $27 million in FY26–27 that grows to more than $47 million by FY30–31 if no corrective action is taken. Haines outlined the county’s increased reliance on vacancy savings and the erosion of unassigned fund balance and said staff recommends a three-year phased approach to reductions while simultaneously pursuing possible new revenue sources.

Under the staff recommendation — which the board approved unanimously — departments will be asked to submit reduction options proportional to their net county cost. Staff emphasized that the reduction target for the first two years would be set without assuming new revenues; any revenue the county secures later would allow adjustment of out-year targets. The county’s proposal also contemplates preserving core reserves by using other one-time funding sources only where appropriate.

Supervisors asked staff to provide transparency about service impacts and to prioritize human-centered approaches where feasible. The board also directed staff to return with detailed reduction options, service-impact analyses, and a budget calendar; staff said departments would have until late February to submit proposals and the board would receive further updates in March and April, with a recommended budget hearing scheduled for June 9.

The action formalizes a staff plan intended to force early planning by departments and to preserve the county’s longer-term fiscal health while the county explores revenue opportunities.