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Humboldt County warns HR 1 will drive up health‑service costs and staffing needs as DHHS asks for budget flexibility
Summary
The county’s Department of Health and Human Services told the Board of Supervisors its proposed $315 million budget faces big new costs from federal HR 1 rules and lost federal grants, warning thousands of Medi‑Cal and CalFresh recipients will require more county eligibility work and that indigent‑care costs could rise in future years.
Humboldt County’s Department of Health and Human Services (DHHS) told the Board of Supervisors that the department’s proposed $315,000,000 budget for fiscal 2026‑27 will be strained by new federal rules and shrinking federal grant support.
DHHS Director Connie Beck and Deputy Director of Financial Services Travis Green said the county is already planning to cut and shift positions to balance next year’s budget but warned elected officials to expect higher eligibility‑verification and indigent‑care costs tied to federal HR 1 changes. "What we see before us in this slide is the total budget for fiscal year 26, 27… the total there is $315,000,000," Green said.
Why it matters: County officials said HR 1 will require more frequent Medi‑Cal re‑verifications and expanded CalFresh work requirements that will increase the workload for county eligibility staff and case management. Beck told the board that more than 55,000 residents are enrolled in Medi‑Cal and more than 21,000 receive CalFresh; she said “over 3,500 Humboldt County CalFresh recipients will be impacted by this change” when work‑related screening begins. County staff also estimated that counties will incur at least $430,851 in additional costs to the County Medical Services Program (CMSP) in FY 2027‑28 as people losing Medi‑Cal seek county indigent care.
What DHHS proposed: The department is asking the board to approve two modest general‑fund requests ($250,000 each) for carpet replacement and server equipment and has restructured several internal positions to consolidate HR and IT workloads. DHHS also proposed a $10,000,000 investment in the Sempervirens stabilization unit, a $4,430,000 diversion grant and nearly $10,800,000 in anticipated placement costs for behavioral health services — expenses staff said will be partly offset by expanded billable bed days and rate changes.
Staffing and mandates: Beck said DHHS plans to deallocate roughly 55 positions in the proposed budget but cautioned that some programs are at minimum staffing and that counties will face new workforce costs to implement HR 1 eligibility requirements. "Effective June 2026, the county eligibility workforce will be responsible for screening, verification, and engagement that is needed to comply with the HR 1 CalFresh rules," Beck said. She warned that increased administrative work could result in penalties for late processing if staffing is inadequate.
Board response and next steps: Supervisors asked for more detail on projected indigent‑care expenses and how other counties are planning for HR 1 costs. Staff asked the board to monitor the governor’s May revision and the final state budget before committing to long‑term actions. The department said it will continue pursuing grant revenue and recommended against cutting non‑mandated outreach programs that provide services to vulnerable populations.
The board did not take any final budget votes during the presentations; departmental budget requests will return for formal consideration during the county’s budget hearings.
