Imperial County Supervisors Approve 2026-27 Budget

-Editorial

The Imperial County Board of Supervisors approved a $797.3 million recommended budget for fiscal year 2026-27 during its June 23 meeting, moving forward a spending plan that includes expanded capital investments, targeted workforce reductions and ongoing efforts to address a structural imbalance in the county’s General Fund.

The recommended budget reflects a 4.2% increase over the previous year’s $763.5 million adopted budget, according to county financial documents.

The total countywide budget is divided across several major fund categories, including $149.8 million in the General Fund, $502.4 million in special revenue funds, $50.5 million in capital projects, $6.3 million in enterprise and other funds, and $88.4 million in internal service funds.

The budget continues to emphasize core service delivery in public protection, health and sanitation, public assistance, and general government operations, which together represent the majority of county spending.

The General Fund accounts for approximately $149.8 million of the total budget and supports key county services, including public safety, administration, health programs, and regulatory functions.

A significant portion of the county’s capital budget, $50.5 million, is allocated to behavioral health infrastructure projects.

Planned investments include funding for a mental health triage and engagement services facility, a children and adolescents outpatient clinic, a substance use disorder treatment facility, and a combined mental health and substance use disorder treatment center.

The projects are part of a broader effort to expand access to behavioral health services and strengthen the local treatment system.

The approved budget includes 2,656 full-time equivalent positions countywide, representing a net decrease of three positions compared to the prior year.

Of the total positions, 1,835 are funded within the General Fund and 821 within non-General Fund operations. County documents show 2,237 positions are currently filled, while 419 remain vacant.

As part of the budget-balancing measures, supervisors approved the elimination of 15 vacant positions across multiple departments, including the County Executive Office, Assessor’s Office, Facilities Management, Public Defender’s Office, Sheriff-Coroner, Probation, and the Agriculture Commissioner’s Office.

Positions affected include probation officers and assistants, sheriff’s deputies and clerical staff, appraisal technicians and administrative support roles.

The General Fund continues to face a structural deficit, with ongoing expenditures exceeding recurring revenues.

For fiscal year 2026-27, projected General Fund revenues are estimated at $144.65 million, while expenditures are projected at $147.39 million, resulting in a $2.73 million shortfall before additional adjustments.

After accounting for required contributions to other funds, including $4.89 million for the Fire Department, $289,367 for the Office of Emergency Services and $96,421 for POE Colonia programs, the projected budget gap widens to approximately $8 million.

The county’s financial position is further complicated by delayed audited financial statements for fiscal years 2024 and 2025. As a result, updated General Fund reserves and fund balance figures remain uncertain.

Several non-General Fund accounts also continue to require ongoing subsidies from the General Fund to maintain operations, according to the budget presentation.

To address the projected deficit, the budget includes a combination of expenditure reductions and financial transfers.

Departmental reductions in the General Fund total approximately $2.19 million. Savings were identified across multiple categories, including salaries and benefits, extra-help staffing, professional services, rents and leases, vehicle costs, training, travel, and office supplies.

Additional reductions of about $462,954 were applied within the Fire Department’s non-General Fund accounts, primarily in professional services, training, and emergency clothing expenses.

The board also approved the elimination of 15 vacant positions as part of broader workforce cost containment efforts.

Several financial adjustments were included in the adopted budget framework, including a 10% realignment transfer totaling $1.78 million, a $2.2 million transfer from the Public Agency Retirement Services (PARS) account, and a one-time contribution of $639,723 from the Welfare Advance Trust fund.

Officials also included a 3% General Fund cost reduction strategy estimated at $3.39 million, along with other internal reallocations intended to stabilize the fund balance.

After adjustments, the county reported that the General Fund budget gap is reduced but not fully eliminated within the current recommended framework.

County documents show that General Fund revenues are primarily driven by current property and sales taxes, intergovernmental revenue, and charges for services.

Property taxes and sales/use taxes remain key revenue sources, while intergovernmental transfers account for a substantial portion of incoming funds.

Officials also noted ongoing variability in revenue trends, particularly in sales tax and Proposition 172 public safety funding allocations, which have fluctuated in recent fiscal cycles.

General Fund expenditures are heavily weighted toward public protection, which accounts for approximately 68% of spending.

Other major categories include general government at 20%, public assistance at 10%, and smaller allocations for public ways and facilities, as well as education, recreation, and other services.

Salary and benefits remain the largest single expenditure category within the General Fund. For fiscal year 2026-27, total salary and benefit costs are projected at approximately $95.46 million, an increase of 4.2% over the prior year.

The county’s budget process will continue over the coming months.

Budget hearings are scheduled for Aug. 18, 2026, during which supervisors will conduct public deliberations, review departmental presentations and consider additional community input.

Final budget adoption is scheduled for Sept. 22, 2026. Once approved, the legally binding budget will be formally adopted by Board resolution.

The county will submit its final adopted budget to the State Controller by Dec. 1, 2026.

Public budget documents are available through the county’s online financial transparency portals, including its OpenBook system and budget finance website.