2016-17 Mid-Year Budget Review

One of the primary responsibilities of the Board of Supervisors is oversight of the County’s budget. We received a mid-year update on the 2016-17 budget at the February 21st meeting, and looked ahead to the challenges the County will face in the 2017-18 budget cycle.

Overall the current budget is as expected, however the Behavioral Health division is projecting a year end deficit of $4.5 million due to an unanticipated increase in acute mental health services and other factors. The department is actively working on mitigation measures to address the short term budget deficit and work toward long term financial sustainability while still meeting the mental health needs of the community.

The Board approved a resolution to increase the current fiscal year budget by approximately $2.9 million to account for administration and enforcement efforts associated with the interim medical marijuana cultivation ordinance. Revenues from permit fees will fully support costs associated with the marijuana program.

As we look ahead to the 2017-18 budget cycle Yolo County is faced with increased costs. The most significant impact is the cost shift of In Home Supportive Services (IHSS) from the State of California to the County level. The additional cost burden to Yolo County for this IHSS shift may be as high as $4 million. Increased labor costs and addressing pension liability will also be a factor in our next budget. Departments throughout the County are actively considering savings strategies as we begin the budget development process.

You can read the full staff report here.