Merced County approves $1.12 billion budget
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- County Supervisors approved a $1.12B budget for fiscal year 2025-26 by 5-0 vote.
- Public safety received $188M and nearly 80% of discretionary funding allocation.
- Affordable housing advocates criticized limited funding for affordable housing.
The Merced County Board of Supervisors approved a $1.12 billion budget for the 2025-26 fiscal year on Tuesday. County leadership says the spending plan focuses on fiscal accountability and prepares for the unseen.
County leaders faced pushback from public commenters on the budget proposal, mostly from the civil and human rights organization Communities for a New California, who called for increased investments in affordable housing and greater public input in the budget process.
“Prioritizing and investing in the affordable housing program and projects will help ensure a sustainable and more compassionate model to prevent homelessness, while decreasing crime and significantly improving the quality of life for families in Merced County,” Julio Contreras said during public comments.
Hendrickson and Supervisor Josh Pedrozo pointed to the state government for affordable housing issues.
“There are other grants that are actually pending, that perhaps, if we’re successful, more resources would be dedicated towards affordable housing,” County CEO Mark Hendrickson said.
“Reach out to your state legislators, fight that fight in Sacramento,” he said.
The approved budget includes $188 million for public safety and $508.7 million for the Health and Human Services department. Nearly 80% of discretionary funding was dedicated to public safety. Only 2% of discretionary funding was dedicated to Health and Human Services.
“(Public safety) continues to be the board’s highest priority,” Hendrickson said. “And your final budget reflects this.”
The adopted budget represents a $24.9 million decrease from the June budget proposal, reflecting what county officials described as ongoing fiscal uncertainty at the state and federal levels. The county’s budget has exceeded $1 billion since fiscal year 2022-2023 and peaked at $1.16 billion in 2023-2024.
County officials attributed the decline to the end of one-time federal and state sources, such as American Rescue Plan Act and CARES Act funding.
The budget decrease over the past two years mirrors decreased department revenues which also peaked in 2023-2024 at $917.6 million in 2023-2024. The county budgeted $832.1 million for department revenues in its newest budget.
The county’s budget carries a fund balance of about 7%, which is the county’s “rainy day fund,” at $77.6 million.
County Supervisors unanimously passed the budget with a 5-0 vote.