Title
Chief Administrative Office recommending the Board:
1) Receive a presentation on the Fiscal Year (FY) 2026-27 Recommended Budget preparation;
2) Provide direction to staff to:
a) Explore reducing the General Fund cost of discretionary services in the Health and Human Services Agency in FY 2027-28 to aid in offsetting the impacts of House Resolution (HR) 1 and 1991 Realignment funding shortfall;
b) Include the Board’s direction on Community Funding in the FY 2026-27 Recommended Budget;
c) Allocate $8.5 million in Mosquito Fire Settlement funding with $400,000 for a shared fire services agreement and designate $8.1 million for projects that benefit the Mosquito Fire Footprint Area; and
d) Include any other direction, if provided, on the FY 2026-27 Recommended Budget;
3) Approve and revise Board of Supervisors Policy B-16 Budget Policies; and
4) Approve and revise Board of Supervisors Policy B-1 Budget Control and Responsibility.
FUNDING: Countywide Budget.
Body
DISCUSSION / BACKGROUND
On October 28, 2025, with Legistar file 25-1710, the Board received the FY 2026-27 Master Budget Calendar. Per the budget calendar, departments submitted their budget requests in late February 2026, and Chief Administrative Office staff reviewed the requests and are preparing a Recommended Budget to present to the Board on June 9, 2026. The budget calendar also included an April Board Update.
The Chief Administrative Office has prepared a presentation outlining the current Recommended Budget. The Recommended Budget is not yet finalized and may change by June 9, 2026. Per the presentation, during the preparation of the FY 2026-27 Recommended Budget the Chief Administrative Office has identified policy decisions for Board consideration and is seeking Board direction on these policy issues before the Recommended Budget is finalized.
HR 1 Impacts
On April 7, 2026, with Legistar file 26-0571, the Board received a presentation from California State Association of Counties on House Resolution (HR) 1 and approved sending letters to the Governor, the President pro Tempore of the Senate, and the Speaker of the Assembly requesting State action to mitigate severe fiscal and operational impacts of HR 1 on county safety net programs.
The FY 2026-27 Budget includes $800,000 in increased appropriations related to HR 1 in the Social Services Division of the Health and Human Services Agency (HHSA). HHSA has explored all options to cover these increased costs with non-General Fund resources, but it is anticipated that $800,000 will need to be covered with discretionary resources. The impacts of HR 1 and other 1991 Realignment cost increases are ongoing costs that will increase in future years. The Chief Administrative Office, HHSA, and the Budget Ad Hoc Committee have reviewed the ongoing needs for discretionary resources in Social Services and recommend that the Board direct staff to explore the following alternatives to lower the General Fund cost of Senior Legal and Senior Day in FY 2027-28:
- Determine the cost and process for moving from in-house Senior Legal to contracted Senior Legal services.
- Explore the wind down of Senior Day Services, perform outreach to potential private providers, and return to the Board with an inventory of exiting services within the community.
El Dorado County is the only Area Agency on Aging that provides Senior Day and has County staff providing Senior Legal. Senior Day is budgeted with a General Fund cost of over $700,000 with a current average of 16 participants a day and a goal of 25 participants a day. That is a daily General Fund subsidy of $168 a day per participant at the current average. There are private providers of Senior Day Services in El Dorado County, and there is no mandate for El Dorado County to provide this service. With Board direction staff will explore the wind down of Senior Day Services, perform outreach to current and potential private providers, and return to the Board with an inventory of exiting services within the community.
Senior Legal has 3.5 FTE and a General Fund cost of over $750,000. There is an obligation to provide legal services, but El Dorado County’s service levels far exceed the minimum mandated level. Per the California Department of Aging, El Dorado County is the only county in California that provides Senior Legal Services in-house. With Board direction, staff will determine the cost and process for moving from in-house Senior Legal to contracted Senior Legal services and return to the Board for further direction.
Community Funding
The Board of Supervisors has historically had a pool of funding that the Board can direct to community events and efforts that provide a public benefit. The process and use of this funding is outlined in Board Policy B-6 Community Funding. The annual amount of funding has varied over the years from $35,000 to $75,000. This funding was eliminated in the FY 2024-25 Budget and not included in the FY 2025-26 Budget. Due to multiple mentions of bringing this funding back at various Board meetings, staff are seeking Board direction on if this funding should be included in the FY 2026-27 Recommended Budget and how the amount should be allocated across districts. The Board could also direct that staff return with an item to repeal Policy B-6.
Mosquito Fire Settlement Funding
On April 7, 2026, with Legistar file 26-0426, the Board approved a budget transfer designating $8,529,649 in discretionary funding, from a settlement related to the Mosquito Fire, and directed staff to return to the Board on April 28, 2026, to receive direction from the Board on how this funding should be appropriated in the Fiscal Year 2026-27 Budget. This funding is discretionary, and the Board can direct how this funding is allocated. The Budget Ad Hoc and Chief Administrative Office are recommending that this funding be allocated as follows:
- $400,000 for a shared fire services agreement on the Divide across three fire districts.
- Designate the remaining $8.1 million for the projects benefiting the Mosquito Fire Footprint Area. This funding will be used primarily for road maintenance and other projects in the area. The DOT Director will consider the uses of this funding and return to the Board for approval of planned uses.
Board Policy Updates
On March 10, 2026, with Legistar file 26-0330, the Board directed staff to:
- Return to the Board with revisions to Board Policy B-1 - Budget Control and Responsibility, to align the policy with Government Code 29125 (B), allowing the Chief Administrative Officer "to approve transfers and revisions of appropriations within a budget unit if the overall appropriations of the budget unit are not increased".
- Return to the Board with revisions to Board Policy B-16 - Budget Policies, to allow for the limited delegation to the CAO for approval of new fixed assets if the overall appropriations of the budget unit are not increased.
Staff have prepared the revisions to Board Policies B-1 and B-16 in compliance with Board Policy A-1 Development and Distribution of Board of Supervisors Policies.
The major change to Board Policy B-1 Budget Control and Responsibility is to align the Board Policy with Government Code 29125b and El Dorado County Ordinance Code Section 2.13.060.D clarifying that “Budget Transfers that do not increase the overall appropriations in a budget unit may be approved by the Chief Administrative Officer”. Other minor changes include defining a Budget Unit as "A major category of the budget at the sub fund department level", clarifying the Budget Transfer Process as it is now, clarifying that the Board approves increased rates, and outlining that if there is a shortfall the CAO determines when the Board is notified.
The major change to Board Policy B-16 Budget Policies is to revise Policy 13 - Fixed Assets to allow the Chief Administrative Officer to approve revisions in Fixed Asset appropriations, including additional fixed assets, if the overall appropriations of the budget unit are not increased and each additional fixed asset does not exceed $100,000. The revision also deletes the reference to when the Policy was first adopted in the Purpose section.
Conclusion
The Board may provide additional direction on the FY 2026-27 Recommended beyond the specific items outlined above. Staff will incorporate the Board direction provided with this item into the FY 2026-27 Recommended Budget that will be presented at the Budget Hearing on June 9, 2026.
ALTERNATIVES
The Board could opt not to provide direction or receive the presentation.
PRIOR BOARD ACTION
See above.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
All departments.
FINANCIAL IMPACT
There is no financial impact to receiving the presentation and any direction on the Fiscal Year 2026-27 Recommended Budget will be brought back to the Board for approval at the June 9, 2026, Budget Hearing.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Emma Owens, Chief Budget Officer