Yolo County’s Board of Supervisors unanimously approved a recommended budget on Tuesday that tackles a nearly $39.6 million deficit. The plan includes “unfunding” 57 vacant positions, using earmarked reserves for the first time in a decade, and cutting contracts.
Chief Administrative Officer Michael Webb explained that property tax revenues have not kept up with rising costs caused by inflation and higher prices for labor and materials. Additionally, uncertainty around state and federal funding has tightened the county’s budget.
The approved budget totals $758.2 million for the fiscal year starting July 1. However, staff and officials may adjust the allocations before the final budget vote scheduled for September 23.
By unfunding 57 vacant jobs but adding two new positions, the county achieves a net reduction of 55 roles. These positions will not be paid for in the upcoming year but remain on the county’s authorized employee list for possible future hiring.
Webb noted that many other counties face similar financial pressures.
State and federal funds make up 43% of Yolo County’s budget. However, Governor Gavin Newsom’s administration is managing its own $12 billion deficit, and federal grants have been reduced under President Donald Trump’s executive orders.
Yolo County collects the second-lowest share of property taxes in California and the lowest in the greater Sacramento area. Property taxes only contribute 10% of the county’s discretionary revenue, compared to 72% in neighboring Sacramento County.
The Health and Human Services Agency, which uses the largest portion of the county’s budget, plans to cut funding for 30 positions and reduce about five contracts, according to assistant director Evis Morales.
For the first time in 10 years, the county will draw from three specific reserves to help cover funding gaps, said budget director Brian Haynes. These reserves are separate from the general reserve fund, which is saved for emergencies.
Haynes emphasized that using these reserves highlights the seriousness of the county’s financial challenges. Supervisors can still make budget changes before the final approval in September. The unfunded positions may be permanently eliminated as budget discussions continue.
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