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Nevada County unveils draft FY 2026–27 budget with reliance on state, federal funds and planned fund-balance use
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Summary
County officials presented a draft $466M-plus fiscal 2026–27 budget at a workshop, warning that roughly half the county's revenues are state and federal and that the plan relies on limited fund balance and targeted use of special-project reserves.
Nevada County leaders on Tuesday presented a draft fiscal-year 2026–27 budget that officials say balances constrained local revenue with continued reliance on state and federal funding and selective use of fund balance.
Deputy County Executive Officer and Chief Fiscal Officer Erin Metler told the Board of Supervisors the county's revenue outlook for the coming year is concentrated in intergovernmental sources. In Metler's slides state and federal funding accounted for roughly half the budget; local funds including taxes and fees make up the remainder. Metler cited a proposed general-fund discretionary plan showing a general-fund balance near $37.9 million and a planned use of about $5.7 million for one-time, special-project continuations.
Metler described the county's budget framework under the County Budget Act and explained core spending drivers: salaries and benefits (about 37 percent of projected expenditures), services and supplies, and capital projects. She also previewed several capital initiatives expected to affect multi‑year spending, including a new Deer Creek behavioral-health facility and deferred maintenance work at county buildings.
On staffing, Metler said the county's headcount has held roughly steady year over year after limited-term positions tied to grants and an enterprise-resource-planning implementation phased out. The presentation included a one‑percent discretionary payroll contribution proposal intended to make an additional payment toward pension liabilities.
Metler emphasized the budget is a workshop draft: the board will not take action at the meeting and the draft budget is slated for public release on May 29, with a public hearing on June 9 and final adoption targeted for June 23.
Why it matters: Supervisors and staff framed the document as an attempt to preserve services while preparing for an era of constrained local revenues, greater dependence on allocated state and federal funds, and unavoidable inflationary pressure on personnel and capital costs. Several supervisors asked staff to return with clearer charts showing department-level general-fund impacts and with midyear reporting that compares budgeted fund-balance uses to actuals.
Public comment at the workshop underscored local priorities that could shape the final budget: requests for continued funding for river-safety volunteers and signage, appeals for an upgraded animal shelter, and advocacy for economic-development and recreation investments that presenters said could leverage grant funding in coming years.
Next steps: Staff will post the draft budget to the county website for public review on May 29, hold the June 9 public hearing and bring back a final proposed budget for action June 23.
