Title
Chief Administrative Office recommending the Board approve and authorize the Chair to sign letters to the Governor, the Senate, and the Assembly regarding the State's 2026-27 May Revision Proposal and County Partnership.
FUNDING: N/A
Body
DISCUSSION / BACKGROUND
Each year, the State’s budget development process includes a May Revision that updates the Governor’s proposed January Budget. In 2026-27, counties statewide, including El Dorado County, face significant fiscal and operational impacts associated with House Resolution (H.R.) 1 implementation, continued homelessness response expectations, state proposals affecting the In-Home Supportive Services (IHSS) fiscal structure, and the lack of ongoing investment in critical safety-net programs.
Attached for Board consideration are draft letters to Governor Gavin Newsom, the Senate, and the Assembly, articulating El Dorado County’s concerns and priorities regarding the May Revision. The letter highlights major funding gaps in indigent health care, behavioral health, homelessness, IHSS, Proposition 36 implementation, and the proposed restrictions on development impact fees.
The draft letter communicates the County’s position on several items included or omitted from the May Revision, including:
• Insufficient funding to address the substantial county-level impacts of H.R. 1 on indigent health care, Medi-Cal eligibility work, and safety-net services.
• Significant concerns with the continued proposal to shift IHSS costs to counties beginning in 2027-28, which would undermine core health, behavioral health, and social services programs.
• The need to restore Homeless Housing, Assistance, and Prevention funding to prior levels and ensure timely, flexible distribution.
• The importance of funding local Proposition 36 implementation across county departments responsible for treatment, probation, and supervision.
• Concerns regarding proposals to restrict or discourage development impact fees used to fund essential infrastructure required by new development.
These concerns are consistent with statewide county advocacy and reflect real fiscal consequences for El Dorado County if the issues are not addressed in the final 2026-27 budget.
ALTERNATIVES
The Board may choose not to submit the proposed letters or may direct staff to make revisions.
PRIOR BOARD ACTION
Legistar file 26-0571- April 7, 2026 - The Board authorized the Chair to sign 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 H.R. 1 on County safety net programs.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Health and Human Services Agency
FINANCIAL IMPACT
There is no direct financial impact with this item, however, the development of the 2026-27 State Budget could impact County programs and services.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Obtain the Chair's signature on the three letters and return to Alison Winter in the Chief Administrative Office for distribution.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Alison Winter, Principal Management Analyst