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San Luis Obispo County facing $15.3 million budget shortfall

March 23, 2025

By KAREN VELIE

With a looming budget shortfall of more than $15 million, San Luis Obispo County is working on a plan to reduce costs and balance the budget.

SLO County revealed last week it is facing a $15.3 million budget gap for the upcoming fiscal year starting July 1. The county bases its status quo budgets on revenue and costs from the prior year.

However, while revenue is declining the cost of personnel is climbing.

The $15.3 million gap does not account for salary increases that went into effect after Nov. 2024. Taking additional factors into account, SLO County’s budget deficit forecast for the 2025-2026 fiscal year climbs to $33.4 million.

The forecast budget deficit rises to $66.8 million in fiscal year 2028-2029.

California provides 35% (approximately $246 million) of the county’s general fund operating revenue. Because of current fiscal challenges, the state could cut funding.

Another 14% (approximately $100 million) of the county’s operating revenue comes from federal funds, which could also face cuts.

During Tuesday’s SLO County Board of Supervisors meeting, county staff is scheduled to provide a presentation on the upcoming budget shortfalls. In addition, staff will present their “financial rebalancing and resilience initiative.”

The plan is to reduce $40 million from the 2025-2026 fiscal budget, according to the agenda.

County administrators are conducting a comprehensive review of all county programs across all departments. The plan is to look at program impacts, efficacy to the community, costs, outcomes, and alignment with board priorities.

The goal is to construct a budget that adjusts the county’s current spending and prevents recurring deficits and the need for annual budget cuts.

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Look up San Luis Obispo County on http://www.transparentcalifornia.net and see why there is a deficit.


4

It’s crazy that one of the wealthiest counties in California, which earns so much revenue from agriculture and tourism, is in a financial hole. Not to mention the fact that homes in the county have increased in value by 50-100% in the past 4 years, and every home sold that was previously on a low tax basis thanks to Prop 13 has been reset to current market value. In many cases, particularly on multimillion dollar homes, the property taxes have increased 5x to 10x for properties that were previously owned for decades.


Perhaps if local leaders focused on fiscal responsibility more than woke projects and priorities, they’d have a balanced budget.


22

Bahahahahah.

The same day that there is a story that the county is 30 Million over budget, the story comes out that 30 Million dollars is being used to build walking trails that produce 0 revenues.

This county and the liberal claptrap running it is dangerously out of touch with me.

And I believe, that a large majority are just like me.


12

$21 million to build 4.5 miles of dog walking and electric scooter trails, not $30 million. But, hey, maybe there will be cost overruns, so the trail projects could feasibly approach $30 million when it is all said and done.


2

Would t a headline they reads “county faces 4% budget deficit!!!” Be more eye catching?


-2

Salary and pension caps, starting from 2005, and dissolve public servant unions.


Oh, and stop comparing county salaries and costs, with any county in the LA basin to establish salaries and costs. We are not alike.


19

Yeah our cost of living is higher than much of LA. No unions? Too hard to abuse employees when there is a union?


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