Board of Supervisors

Meeting Summary

Present: Lee, Capps, Hartmann, Lavagnino, Nelson

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General Services identified cost reductions while noting a significant increase in deferred maintenance backlog.
The County Executive Office proposed eliminating vacant positions to reduce General Fund contributions.
The Board postponed the decision regarding the administration building relocation to a future meeting.

Staff projected a decline in cannabis tax revenue attributed to potential license revocations.
A proposal was presented to allocate unallocated funds toward a youth impact pilot program.
Supervisors requested a more detailed plan with measurable outcomes before committing new resources.
No final decision was made on the fund allocation during this workshop session.

Staff outlined strategies for managing strategic reserves targeted at eight percent of operating revenue.
Designated funds cover debt service for jail construction and contingencies for indigent care.
The Board noted that maintaining reserves helps smooth budget fluctuations across fiscal years.

General Services: Director Lagerquist concluded the presentation regarding the department's budget. Despite facing a second straight year of capital improvement planning without one-time funding, the department identified $380,000 in reductions through contract and IT cost cuts. Deferred maintenance backlog is currently at $122 million, having grown $2 million in the past year. No decisions were made regarding the potential relocation of the administration building to the Turnpike campus; that remains a future board decision.
Policy and Executive: This group covers the County Council, Board of Supervisors, and County Executive Office.
Board of Supervisors: Budget is status quo at approximately $5.2 million, with no restoration requests.
County Executive Office: Proposed a 7.4% reduction in General Fund contribution, eliminating three vacant positions. The budget focuses on sustainable reductions, risk management, and criminal justice initiatives.
Highlights: The County Council received a $12 million General Fund contribution. The Executive Office highlighted successful implementation of the SHREPA budget software and a move toward a paperless docketing process.

Revenue Projections: Cannabis tax revenue is projected to decrease from $5.3 million (2025-26) to $4.7 million (2026-27). This decline is attributed to potential license revocations regarding odor abatement compliance.
Unallocated Funds: There is a projected unallocated balance of approximately $780,600.
Allocations: Ongoing uses are projected at $4.5 million, sufficient to cover current expenditures. The Sheriff's Department requested continued one-time funding for a Warrants Officer position. Staff is seeking board direction on how to allocate the unallocated $780,600, noting that revenues are not intended for new ongoing uses beyond 2021-22 policies.

Youth Impact Coalition: Fifteen speakers from the Youth Impact Coalition addressed the board, arguing that the majority of the nearly $55 million collected in cannabis taxes since 2018 has gone toward enforcement rather than reinvestment in communities harmed by the "war on drugs."
Proposal: Speakers urged the Board to utilize the unallocated cannabis tax revenue to create a "Youth Fund Pilot Program." They cited research suggesting that investing in youth mentorship and mental health reduces arrests and substance use, offering a long-term public benefit return of up to $13 for every $1 invested.
Comparisons: Speakers noted that other jurisdictions (Sacramento, San Diego, Santa Cruz) already allocate significant portions of cannabis revenue to youth services.

Supervisor Lavagnino: Acknowledged the intent of Proposition 64 but clarified that much of the enforcement funding was related to regulating growers rather than punishing users. He expressed support for the concept but requested a "laser-focused" proposal with measurable outcomes before committing funds. He requested staff analysis on how current Public Health "Be Well" funds ($219,000) are being utilized to avoid duplication.
Supervisor Lee & Hartmann: Emphasized the need for the coalition to return with a specific, actionable plan that avoids duplicating existing services and demonstrates clear metrics for success.
Supervisor Nelson: Noted that district-specific needs vary and suggested potential for district-based allocations.
Decision: The board did not make a final decision on the cannabis allocation during this session. The coalition was encouraged to return with a more detailed, focused plan by June or during Friday's deliberations.

Fund Management: Staff presented on General County Programs, which manages countywide fund balances, strategic reserves (targeted at 8% of operating revenue), and specific debt services.
Key Reserves: Significant funds are held for the Northern Branch Jail construction ($9 million debt service anticipated), indigent care program ($5.7 million set aside), and behavioral wellness contingencies.
Strategy: The Board acknowledged that moving funds into reserves helps "smooth" budget fluctuations, preventing deeper cuts or deficits in future years compared to other counties.

The workshop concluded with a scheduled return on Friday, April 17, 2026, for the third and final day of budget workshops. An AI presentation mentioned in the closing was noted to be carried over.