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Fresno County officials warn of widening budget gap after federal funding shift
Summary
County leaders told residents the county faces rising costs and slowing revenue, pointing to a 2025 federal bill (HR1) that shifts indigent care costs to counties and could create a $40–$240 million annual liability; officials also highlighted limited discretionary funds and rising service demand.
Fresno County leaders on a virtual town hall outlined growing fiscal pressures, saying increasing demand for services, inflation-driven cost climbs and changes in federal funding have left limited local flexibility.
County Administrative Officer Paul Nerlin told residents that about one in two county residents receive some form of public assistance and that the county faces rising program costs. "One out of every two county residents is on some kind of public assistance," Nerlin said, citing "over half a million people" receiving county services. He said the county has limited discretionary funds compared with the size of its responsibilities.
Nerlin and Budget Director Paige Benvitas said the county's FY 25–26 budget totals $5.3 billion, with approximately $2.6 billion in the general fund. Benvitas said only about $48 million is ongoing discretionary funding available for the county's basic operating needs.
Nerlin warned that a federal bill passed in 2025 called HR1 shifted certain costs to counties, with indigent care responsibilities now potentially costing Fresno County an estimated $40 million to $240 million annually depending on how many residents lose other coverage. "That is estimating it based on 11 to 30,000 people falling off of other coverage," he said. He also said behavioral health revenue could decline by about $15 million and that CalFresh-related county costs increased by roughly 7.5% (about $7.5 million).
Officials said construction and equipment costs have risen 20%–40% and that public safety spending is a major portion of discretionary dollars (the sheriff's budget was cited at about $385 million). They described specific service-area pressures such as maintaining 3,461 miles of county roads and responding to large disasters, noting the 400,000-acre Creek Fire with roughly $500 million in damages as an example of events that create unreimbursed costs.
County staff framed the transient occupancy tax (TOT) as one among a small set of options to raise local revenue; staff will present details to the Board of Supervisors and accept public comment prior to the June 30 board meeting when the Board will consider whether to place a TOT measure on the ballot.
