Alameda County supervisors accept $4.5 billion proposed budget for review, set public hearings

The Alameda County Board of Supervisors on June 11 accepted the county administrator's proposed fiscal year 2024-25 budget and scheduled public hearings to begin the week of June 24.

The county administrator presented a balanced budget he described as a $4.5 billion spending plan, including roughly $4.0 billion in the general fund and a $255 million increase to the general fund. "The fiscal year 2024-25 proposed budget represents a work plan to achieve your Board's strategic vision, Vision 2026," the county administrator said, reading the board letter into the record.

Why it matters: The proposed budget aims to close a $68 million funding gap through a mix of ongoing reductions and one-time solutions and would fund priorities the board identified in Vision 2026, including mental health, homelessness, and infrastructure. The administration said the proposal supports nearly 10,500 employees and includes targeted increases for community-based organizations and health services.

Key details from the proposal include:

- Totals: a $4.5 billion all-funds plan and an almost $4.0 billion general fund.

- Gap and balancing: strategies to close a $68 million funding shortfall using roughly $46 million in ongoing reductions (about 68%) and $22 million of one-time solutions (about 32%), including vacancy savings and departmental adjustments.

- Community-based organizations: $867 million recommended for services delivered by nearly 280 CBOs, including nearly $100 million directed to Alameda Health System and a $12 million increase to fund a 5% cost-of-living adjustment for eligible CBO contracts.

- Mental health and DOJ settlement: approximately $750 million proposed for mental health services, with more than $200 million in next-year Mental Health Services Act investments and specific funding for forensic system redesign and behavioral health program implementation tied to a settlement with the U.S. Department of Justice.

- Homelessness and housing: allocations cited include about $47 million from Measure A1 and roughly $80 million in housing and homeless services supporting nearly 90 full-time equivalent positions and direct-service contracts.

- Reserves and capital: the proposal designates $15 million (about 1.5% of discretionary revenue) for the General Reserve and increases capital and deferred maintenance investment by $35 million for a total of $65 million; it also includes over $2 million for property tax system modernization and contingency funds for pending labor negotiations.

During the meeting Supervisor Carson moved to "accept the county administrator's proposed budget as stated and written into the record and that we hold public hearings as outlined," and the motion was seconded. The clerk recorded affirmative votes and the board approved the motion as recorded.

The record included several fiscal risk warnings: the administrator pointed to state budget revisions that propose cuts to health and human services programs, ongoing exposure to sales-tax and high-income-tax volatility, and significant unfunded capital needs, including a noted $680 million investment toward an acute care tower at Highland Hospital and an estimated $1.4 billion unfunded actuarial accrued liability at the county retirement association.

Next steps: The board scheduled public hearings on the proposed budget to begin the week of June 24, after which the board will deliberate and consider adoption. The motion as recorded will bring the proposed budget forward for those hearings and subsequent action.