Fresno County facing $15 million budget deficit

Tuesday, March 11, 2025 6:51PM PT
FRESNO COUNTY, Calif. (KFSN) -- On Tuesday, the Fresno County Board of Supervisors heard a status update on budget planning for fiscal year 2025-26.

It is currently projected to have a more than $15 million deficit.

That shortfall could become even greater depending on potential spending cuts made by Congress as they work to reach a budget.

"I do think that challenging times like this are actually good for government," said Fresno County Administrative Officer Paul Nerland.

"It forces us to look at our services, it forces us to be more efficient, more innovative and that's exactly what we plan to do."



The shortfall comes as property and sales tax revenues are expected to fall as growth in the county slows compared to the past few years and as the economy struggles.

The county working to get ahead of the consequences of any cuts:

"Beginning this week, we will be sending out budget scenarios to our departments that include receiving no additional net county costs, 5%, and 8% reductions to see what that might look like," said Nerland.

Another solution he proposed: a week or two of furloughs for county employees.

The county depends on funds from Sacramento and Washington.



The state's budget could be impacted by the Los Angeles wildfire relief.

The federal budget is being slashed by Republicans in Congress and the Trump Administration.

"We have about $800 million that is budgeted in federal funds. What's been talked about with the potential Medicaid funding cuts, if they were to happen, are staggering," said Nerland.

Fresno County spends $4.3 billion on MediCal.

$2.7 billion of that is reimbursed by the federal government.



Any reductions in that reimbursement would have to be made up by the county.

"Anything like that could put more pressure on discretionary dollars if there are mandated services that the county must now cover with those precious limited dollars so this is an area we are closely watching daily," said Nerland.

The first part of the budget will come before the board in June.

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