The Adopted Budget builds on substantial reductions incorporated into the Recommended Budget approved by the board in June. Photo designed by Magnific

WOODLAND, CA (MPG) - The Yolo County Board of Supervisors adopted the Fiscal Year 2026-27 budget on Tuesday, Sept. 22, approving a balanced spending plan amid an ongoing structural deficit, rising costs and continued reductions in state and federal funding.

“This budget reflects our responsibility to protect the essential health and safety services Yolo County provides while confronting a significant structural deficit,” said Sheila Allen, chair of the Yolo County Board of Supervisors. “Long-term balance will require us to manage spending carefully and strengthen ongoing revenues. Our focus is on making prudent decisions now so the County can continue meeting critical community needs in the years ahead.”

The Adopted Budget builds on substantial reductions incorporated into the Recommended Budget approved by the board in June. While one-time year-end resources allowed the county to avoid another broad round of reductions during the Adopted Budget process, they do not change the county’s underlying fiscal challenge. Ongoing costs continue to exceed ongoing revenues, and many of the one-time tools used to balance recent budgets cannot provide a permanent solution.

Rather than using available one-time funding to create significant new ongoing obligations, the Adopted Budget restores approximately $3.1 million to the General Reserve, reestablishes a $2 million reserve for the Health and Human Services Agency and provides $1 million for General Fund contingency. These funds will provide greater capacity to respond to unforeseen costs, future funding reductions and other fiscal pressures.

“Balancing this budget does not mean our structural deficit has been resolved,” said Yolo County Administrator Michael Webb. “Our responsibility is to manage limited resources carefully and avoid using one-time dollars to create ongoing costs we cannot sustain. Restoring reserves and contingency funding is a fiscally prudent and responsible step that helps position the County to manage the difficult budget decisions that remain ahead.”

The Adopted Budget also reflects the direct effects of reductions in federal funding. Since approval of the Recommended Budget, federal Office of Traffic Safety grant funding for two Public Health programs was reduced by a combined $125,000. As a result, the budget eliminates one Community Health Assistant II position supported by those grants. The funding reductions will also reduce the county’s capacity to provide bicycle and pedestrian safety activities and child passenger safety services.

The county’s structural deficit remains significant. In FY2025-26, ongoing expenditures exceeded ongoing revenues by approximately $10.8 million. County staff has already begun work on the FY2027-28 budget and will continue evaluating expenditure reductions, revenue options and other strategies needed to bring ongoing costs and revenues into better alignment. Achieving long-term structural balance will require both continued discipline on expenditures and sustainable growth in ongoing revenues.

For more information, view the FY2026-27 Adopted Budget staff report and supporting materials: https://public.destinyhosted.com/96561/agenda/agenda-item.cfm?seq=16883&rev=0