Yolo County faces $15M budget deficit as officials prepare for challenging fiscal years ahead

Yolo County's financial future is looking increasingly bleak, as officials revealed a projected budget deficit of up to $15 million for the fiscal year 2025-26 during the Board of Supervisors meeting on January 14, 2025. Chief Financial Officer Tom Haynes presented a stark overview of the county's fiscal outlook, highlighting a troubling trend where expenditures are consistently outpacing revenues, leading to what he termed a "structural budget deficit."

Haynes explained that the county has been grappling with a growing budget gap over the past three years, primarily driven by rising salary and benefit costs. The county's pension contributions have surged from 10% to over 35% of payroll for miscellaneous employees, and even higher for public safety personnel. This increase, coupled with a high vacancy rate and turnover, has forced the county to rely heavily on salary savings to balance its budget—a practice that Haynes cautioned is not sustainable.

The financial forecast indicates that without significant changes, the county will continue to face increasing deficits in the coming years. Haynes emphasized the need for long-term structural solutions, as the current trajectory is not viable. He outlined a roadmap for addressing the deficit, which includes departmental budget reductions, potential elimination of non-core programs, and exploring options for revenue enhancement.

The board is set to discuss budget principles and a calendar for the upcoming fiscal year at their next meeting on January 28, with a budget workshop scheduled for March 10-11. As the county navigates these financial challenges, the supervisors will have to make tough decisions about funding priorities, including potential cuts to public safety and human services.

The meeting underscored the urgency for Yolo County to adopt a more sustainable financial strategy, as officials prepare for a challenging budget process ahead.