While Contra Costa County says its proposed $7.1 billion 2025-2026 budget is healthy in terms of having strong reserves and an “excellent” credit rating, officials are concerned about future “uncertainty and volatility.”
In an April 18 report to the board of supervisors, County Administrator Monica Nino pointed to a March 14 congressional resolution that could potentially leave more discretion for how the federal government will allot money to state and local governments.
As more than half of the county’s budget ($4.1 billion) comes from state and federal sources, the general reshaping and downsizing of federal government under the Trump administration could have significant local impacts, particularly if social safety net programs fall victim to deep cuts. Some concerns include:
- Unanticipated impacts of federal and state policy and budgetary changes;
- Tariff-related impacts on the economy and federal and state revenues;
- Slower local revenue growth; and
- Increasing operating costs arising from, for example, inflation, labor negotiations, insurance.
“This year’s budget hearing will be one of the most challenging in my time on the Board of Supervisors,” Supervisor John Gioia, who represents Richmond, said in an email to Richmondside. “Our health system and social services depend on Federal and State funding. The threats by Congress and the White House to significantly reduce funding for healthcare, social services for children and seniors, and Head Start pre-school could devastate the social safety net services provided by counties.” Â
County budget planning meetings
WHAT: Contra Costa County Board of Supervisors budget discussions
WHEN: Mon., April 28, at 9 a.m., continuing on Tue., April 29, at 9 a.m. The board is expected to adopted the budget on May 20.
WHERE: County Administration Building, 1025 Escobar St., Martinez or via Zoom.
AGENDA: See the agenda for more information and the budget overview.
“At the state level, in mid-March 2025, Medi-Cal costs exceeded estimates, requiring the state to borrow more than $6 billion to cover current year expenses and signaling that the program’s budget is structurally out of balance,” Nino reported. “Even if the federal government does not make reductions to Medicaid, the state will be forced to contend with its own structural deficit in Medi-Cal, making counties susceptible to program reductions.”
To prepare for this uncertainty, the county is setting aside a larger amount — $21.5 million instead of $20 million — for emergencies, Nino explained.
The county supervisors will hold meetings Monday and Tuesday to discuss the proposed spending plan.
A few facts about the proposed spending plan and who it serves:
- There are 411,662 households in the county, which has a population of 1.16 million.
- 78% of the county’s discretionary budget goes to eight departments, most of which perform public health and safety work.
- The budget funds the equivalent of 11,279 full-time equivalent positions.
- Among a number of planned major capital improvement projects: The county plans to spend $13.2 million to make the West County Detention Facility in Richmond compliant with the Americans with Disabilities Act.
