Fresno County board adopts recommended interim budget resolution as CAO warns of shortfalls

The Fresno County Board of Supervisors unanimously adopted a resolution June 2 authorizing the recommended interim budget for the period beginning July 1, 2026 and directing staff to prepare for formal adoption later in the fiscal cycle.

Paige Benavides of the County Administrative Office presented the recommended appropriations and explained that the recommended package covers the period 07/01/2026 through board adoption of the final budget in September. She said timing allows departments to incorporate the state budget outcomes and finalized assessed values into the final budget hearings scheduled for September.

CAO Paul Nerland described a strained fiscal picture: he estimated county reserves of about $90,000,000, "less than half of the target we would like to be," and urged departments to identify efficiencies as county net county cost pressures require difficult choices. "Reserves are typically used in emergency use only after the county's exhausted all remedies, such as cutting expenses or finding other revenue sources," Nerland said. He noted the county’s AA‑minus Fitch rating and cautioned that tapping reserves could affect borrowing costs.

The board directed departments to review proposed 5% net county cost reductions and requested staff return with options and analysis. The resolution simply adopts the recommended budget for the interim period; the final budget process and public hearings remain scheduled for September.

Next steps: CAO staff will work with department heads on proposed adjustments and bring the final recommended budget for public hearings in September.