Front Page  »  

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.

Because we believe the public needs the facts, the truth, CalCoastNews has not put up a paywall because it limits readership. However, we are seeking qualification as a paper of record, which will allow us to publish public notices, this requires 5,000 paid subscribers.

Your subscription will help us to continue investigating and reporting the news.

Support CalCoastNews, subscribe today, click here.

 


Loading...
Subjects:     
Related:


16 Comments
Inline Feedbacks
View all comments

Pfft, that’s an easy one! Just raise taxes right?


3

These numbers don’t include the underfunded pension liability!!!

Maybe we could borrow Musk for a minute!!!


40

When all is said and the review of operations is complete the status will remain, the only reductions will cause inconvenience to the public.


29

So, Los Osos, stepchild of the county, I guess we shouldn’t count on any help trying to buy the old Sunnyside property.


6

SLO County budget is about $1.1B. Stated another way, thats $1,100M. $40M deficit is less than 4% of the budget. I could find 4% waste and fraud before breakfast, and I wouldn’t need any help from Elon Musk.


40

cue to “we need to raise the sales tax” stories.


32

I could fix this in 5 minutes!


23

Salaries are always the big dog in the budget, but also the easiest to project. More difficult is revenue, since technically government is not in the business of making money. So how about Admin just plays it conservative and projects next fiscal year at 90% of the current year’s revenue. Then look at expenditure and if salary and fixed costs exceed that, dump fixed costs first (unnecessary inventory, rents, low use programs) where possible and then lay off staff associated with those costs. If more cuts are needed, then probationary and even deeper cuts in staff will be required.


But that’s never what happens. Department heads will lobby for more programs, more regulations and thus more staff (empire building is all about numbers and numbers equate administrative salaries). The liberal BOS will never cut programs or staffing and so the cycle of deficit spend continues and guess what? Yep, increase in fees, regulations that require fees and ultimately a petition to increase taxes.


Yes, it may be over simplified, but really, distilled to the above, this is how California and most counties and cities are run. Eventually it always falls on the taxpayer and fee and rate payer.


Now consider if you will that government was run more like a business, not exactly, but more. When a business is making widgets or providing service that few want, it jettisons those and considers something else or a better or different service. If the product or service is central to the business, the company lower’s the cost, not raises it. The opposite happens in government.


If a business projects fewer sales the next FY, it reduces inventory, doesn’t hire and reduces hours of existing staff. If business picks up, hours are increased until 20% of staff are working overtime at which point it hires. The opposite occurs in government.


Government increases revenue by increasing regulations that require staff and fees and taxes. So if you like fees, taxes and regulations, you the taxpayer should keep voting for politicians who will gleefully provide those for you. If you don’t, then just look for whom the government unions endorse and vote for the other person.


38

Start with reducing compensation for anyone currently over $150,000, say 15% cut for $150,000 to $174,999, 20% cut for %175,000 to $199,999, and so on.


55
1 2