SLO County finalized its $1.1 billion budget. See what programs, jobs were cut
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- SLO County adopted a $1.1B budget, avoiding a $38M deficit with major cuts.
- County eliminated 154.75 jobs and reduced funding to several health programs.
- Supervisors added $5.7M in one-time aid for housing, nonprofits and park services.
After an intense budgeting season, the San Luis Obispo County Board of Supervisors adopted the final county budget for fiscal year 2025-26 on Tuesday.
The initial recommended budget would’ve cut $38.3 million and 168 jobs, most of which were vacant. It also would’ve reduced or ended funding to 14 health agency programs and clinics.
A few significant changes were made before the budget was finalized, including adding about $5.7 million in one-time funding for services originally slated to be defunded, cutting 12.25 fewer jobs (with the decimal representing part time jobs) and keeping one health agency program open.
All in all, the total county budget now sits at about $1.1 billion, with $812 million of that making up the general fund budget.
The board voted unanimously to adopt the budget. The new funding levels will kick in at the start of the fiscal year on July 1, but the board will likely have to return to the budget in September when the federal and state budgets are finalized, which collectively account for 50% of the funding the county receives.
The special districts budget — which primarily funds wastewater management and treatment, lighting, fire protection, road maintenance, flood control and other community services — was also approved at an additional $73.4 million.
Budget cuts this year were like never before. If the county had not successfully closed its $38 million deficit this year, the gap would’ve grown to $67 million by 2029, projection showed.
“We really needed to do some things that have certainly changed the landscape, but I think it was important for us to prepare for what could be coming forth in the coming years, and something that had not been done for many years past,” Supervisor Dawn Ortiz-Legg said at Tuesday’s meeting.
Final county budget changed from recommended cuts
Many of the original suggested cuts to close the county’s deficit were kept — including closing the Paso Robles reproductive health clinic, cutting funding to Transitions-Mental Health Association’s Growing Grounds Nursery and eliminating a grant for San Luis Obispo Court Appointed Special Advocates’ foster youth mentor program.
Other changes were made by the board during a budget hearing on June 9.
The most significant changes included the allocation of $1.5 million for a one-year transitional fund for health and human service non-profits losing county funding, $2.5 million in one-time support for homeless services, $250,000 for the Cecchetti Road repair project, $248,368 to partially restore the Medically Fragile Homeless Services program and $48,000 to fund irrigation water service to community parks.
The source and reasons for these one time funds vary.
The $1.5 million non-profit transitional fund will dole out awards to the most at risk organizations who are most effective in delivering critical services to vulnerable populations. It will be funded in equal part by the county’s general fund and tax reduction reserve. The board established an ad hoc committee, made up of Supervisor Heather Moreno and Supervisor Ortiz-Legg, to join the existing Community Based Organizations Grant Program committee and review applications. Transitions-Mental Health, Court Appointed Special Advocates and other affected programs were encouraged to apply for the grants.
The board created the one-time $2.5 million homeless service fund, which will be paid for with tax reduction reserves, to make up for the lack of state funding for homelessness.
The board also added 12.25 positions, including one assistant county administrative officer to support the board, departmental oversight and legislative actives. The role will cost the county $413,985 and will be paid for out of the general fund.
In total, the county will cut 154.75 jobs, instead of the original 168 suggested, most of which were already vacant.
Other actions the board took included directing the Public Health Department and the Department of Social Services to actively pursue grant opportunities for Healthy Aging services and establishing a 24-hour health agency hotline.
The Martha’s Place children’s center in San Luis Obispo will also remain open. According to a new Health Agency report, the center had the highest rate of no-show appointments of any county health clinic at 24% in 2023-24.
