APCD board adopts FY 2026–27 budget, asks staff to propose appeals process after Gallagher study questions

The Santa Barbara County Air Pollution Control District Board of Directors on June 25 adopted the district’s fiscal year 2026–27 budget and approved a companion salary resolution to adjust staff pay in line with recently completed collective bargaining agreements and an equity analysis.

Directors voted to adopt the staff recommendation for the budget package and added direction that district staff draft and return with a proposal for an appeals process for employees who believe the classification or compensation comparisons in the consultant’s Gallagher study are inaccurate.

The budget package, read into the record as administrative item D6, included (1) the fiscal year 2026–27 proposed budget as presented and (2) two resolutions: a budget resolution approving the district budget and a salary resolution amending the classification and salary plan to reflect negotiated agreements and previously approved management benefits.

Several directors questioned aspects of the Gallagher compensation analysis used to set median market comparisons. One director cited a discrepancy in CARB figures, saying it “looks blatantly wrong” that in the CARB chart a division manager was listed at about $13,000 while a supervisor is listed nearer $19,000. Staff said they had spot‑checked the consultant’s work but acknowledged the CARB comparison was missed in some checks and that Gallagher, the hired consultant, had defended its approach based on its experience.

A staff speaker told the board that the district used Gallagher’s median recommendations to guide adjustments and that supervisors received an equity adjustment applied to managers to avoid pay compaction. The speaker said the district did not have an existing employee appeals mechanism similar to one used by the county and that Gallagher would not re‑open its finalized report at this stage; the board could, however, direct staff to perform additional review or propose an internal appeals process.

Board member Director Hartman moved — and Director Brown seconded — to adopt staff’s recommendation for D6 with the additional direction to return with a proposal for an appeal process. The motion passed on roll call; the chair announced the motion carried unanimously.

Next steps: staff will prepare a proposal for an employee appeal process and bring it back to the board for consideration. The budget and salary resolution now stand adopted for fiscal year 2026–27.