Adopted 2024-25 Budget

Budget Summary of Changes

This 1% contingency budget is proposed to be funded at $1.5 million, or at 0.2%, for a reduction of $6 million for 2024-25. It will remain at this level until an up to $85 million financing plan is completed for the still unreimbursed responses costs from the 2020 CZU Lightning Complex fires and 2023 storm disasters response. The Board will consider this plan on May 14, 2024. This budget may also be funded following the certification of Measure K that would increase by one-half percent the sales tax in the unincorporated area. See the General Revenue section for more details. Final modifications to this budget may be considered as part of year-end concluding actions on June 4, 2024, and with the Board's adoption of the 2024-25 Budget on September 24, 2024.

Supplemental Budget Summary of Changes

The Supplemental Budget reduces Contingencies by $284,574 to provide General Fund contributions for CARE Act implementation by County Counsel and the Public Defender, an increased contribution to Monterey Bay Air Resources District, and a decreased contribution to 911 Communications Center. Health Services Agency will require additional CARE Act contributions estimated at $129,000 with Last Day actions.

Adopted Budget Summary of Changes

The Adopted Budget adds $9,251,227 in appropriated contingencies with $5,500,000 from the County’s Measure K half-cent sales tax, which voters approved on March 5, 2024. This restores the contingency to the 1% level from the prior budget cuts. This contingency is critical in part due to the threat of climate-driven disasters this coming winter and other potential emergencies. The budget also sets aside $1,000,000 for housing-related uses and $1,000,000 for emergency road repairs from the Measure K half-cent sales tax.

District Sales Tax Contribution

The General Fund Contingencies budget includes a new contribution from District Sales Tax totaling $5,500,000 for general and restricted contingencies.

General Contingencies

General contingencies include a District Sales Tax contribution of $3,500,000 due to the threat of climate-driven disasters this winter and other potential emergencies or unanticipated costs. These contingency funds will be transferred to departments as needed. Staff will provide an assessment on uses to date no later than the 2024-25 mid-year realignment and, if necessary, recommendations to replenish the contingency back to the 1% of General Fund expenditures funding level.

Restricted Contingencies

Restricted contingencies provide $1,000,000 for housing-related uses that will be transferred to departments in 2024-25 and spent in the following three areas:

• $200,000 for Housing Authority security deposits for units rented in unincorporated areas (Human Services Department Housing for Health Division);
• $400,000 for behavioral health room and board expenses in licensed residential facilities in unincorporated areas (Health Services Agency Behavioral Health Division); and
• $400,000 for investing in affordable and supportive housing projects in unincorporated areas (Community Development and Infrastructure Housing Division).

An additional $1,000,000 is restricted for emergency road projects this winter. Community Development and Infrastructure’s Road Fund had little to no contingency funding available for winter emergencies in 2024-25. The Road Fund spends $1,500,000 on emergency repairs to roads during a year with average rainfall, such as last winter. These contingency funds will be transferred to the Road Fund as needed.

Open the Services Overview or Operational Plan Objectives below for more details.