The September revision to San Mateo County’s budget considers rollover funds from the previous fiscal year, adds 24 job positions and conservatively plans ahead for any state or federal funding changes.
The updated budget for Fiscal Year 2025-26 now totals $5.5 billion with 5,889 positions, with the discretionary general fund at $4 billion with 4,725 positions, which reflects approximately $610 million in net adjustments. County Executive Mike Callagy presented the adjustments to the Board of Supervisors at its meeting Sept. 23.
These adjustments were affected by many key factors, which include the rollover for ongoing capital projects and infrastructure improvements, approximately $16.5 million in new identified capital projects, pre-funding future retiree benefits and increases to health benefits.
The updated budget provides a “balanced approach” for the foreseeable future that includes both conservative and proactive measures to ensure financial stability, Callagy said. So far, the efforts “are all paying off,” he said.
For instance, pre-funding future retiree benefits works to “aggressively” pay down costs upfront by contributing up to $75 million this upcoming fiscal year for long-term cost savings, Chief Financial Officer Roberto Manchia said. This saves the county approximately $10 million a year, he said.
In May, the Board of Supervisors also approved increasing the county’s reserves from 10% to 15%, and each of its 22 departments were tasked with increasing their reserves from 2% to 4%. Already the county is maintaining reserves at 16.9%, Callagy said.
The hefty reserves were implemented to provide a safety net of funds should any revenue source falter, Callagy said.
These efforts, among others in the financial department, work to preemptively put the county in a safe position amid looming concerns of potential shifts in state and federal funding.
“Through the board’s fiscal stewardship and ongoing safeguarding, we will get through this and we will move forward and continue to serve and deliver the highest quality services possible to residents,” Callagy said.
For instance, adjustments to Medicaid that flow down to Medi-Cal can show “how changes outside our control can cascade to the local level,” requiring the county to be prepared, according to a staff report.
The ongoing lack of full Vehicle License Fee adjustment amount reimbursement from the state is something the county is paying close attention to and fighting for in court, to secure what Callagy described as the county’s rightful money. While the county works to obtain these reimbursements from the state, it is allocating reserves to cover any expenses related to the shortfall.
The updated budget was approved by supervisors unanimously.
(1) comment
Folks, based on the numbers, we can see that San Mateo County is not hurting for money. They have a reserve at 16.9% which means they’ve been holding onto plenty of your money while at the same time floating numerous tax proposals to get more of your money. In addition, we can see that pension and benefits costs are continuing to rise. Sure, they say they’ll save $10 million a year by paying $75 million this year but they don’t account for the inevitable raises they’re going to hand out with the supposed $10 million savings as well as the $millions more they’ll pay for salaries, pensions, and benefits for 24 more government union workers. Which mean more proposals looking for more of your money in the near and far future. Note there’s no discussion of fiscal management. Vote NO when the county inevitably floats another dozen proposals for more of your hard earned money.
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