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San Luis Obispo County facing multimillion dollar budget shortfall

November 24, 2025

By KAREN VELIE

With a looming multimillion dollar budget shortfall, 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 $4 million to $11 million budget gap for the 2026-2027 fiscal year. The county bases its status quo budgets on revenue and costs from the prior year.

However, while revenue is stagnant expenses are climbing.

“The multi-year forecast continues to present a challenging picture as projections indicate that the county will continue to experience constrained revenue growth with expenditures outpacing revenues,” according to the SLO County Board of Supervisors Nov. 18 staff report. “The multi-year forecast highlights the need for reductions through a continued strategic rebalancing as well as sustained ongoing efforts aligned with the board’s adopted policies.”

SLO County’s budget deficit forecast for the 2027-2028 fiscal year climbs to $14.8 million. The forecast budget deficit rises to $18.7 million in fiscal year 2029-2030.

California provides approximately 35% of the county’s general fund operating revenue. Because of current fiscal challenges, the state could cut funding. Another 14% of the county’s operating revenue comes from federal funds, which could also face cuts.

The budget balancing plan includes a hiring freeze, deferring capital improvements, minimizing building maintenance costs and increasing fees.

“Hiring will be strictly limited to positions deemed essential to maintaining core service delivery and strategic priorities,” according to the staff report. “It is important to emphasize that reductions should be based upon priorities, not vacant positions.”

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

The goal is for the county to remain adaptable to changing conditions, to be able to regenerate in the face of setbacks, and to ensure long-term fiscal stability.

In the next few months, department heads will prepare and submit reduced budgets. Administration will review the budgets before providing the SLO County Board of Supervisors an update in March.

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Anyone know what the county spends on bums and illegals?


70

For an answer to the bums part take a look at Transparent California.


26

Its hilarious they want to talk about cutting spending and fiscal responsibility when throughout the entire county elected officials voted to give theirselves raises over the last few yrs. If their looking into areas to cut spending the first thing should be to eliminate the pay raises they gave theirselves.


104

And yet 3 County Stupidvisors voted 1 week ago to use “excess funds” for a temporary bridge that would only be up a couple of months before the permanent bridge was installed…


55

Temporary solutions are never a good idea in public works because they come in over budget and late, funds and effort wasted.


40

The rank and file staff went through layoffs last July. Staff is also currently going through “reclassifications” which equates to demotions and pay cuts. No word about changes for upper management though.


31

Hey Jimmy An Arizona bridge would work just fine there. We’ve got one on North River Road and nobody complains about it, just the morons who tried to drive across it about 10 years ago and the Highway Patrol fished them and their redneck lifted truck out.


10

38,000,000,000,000 Trillion Dollars . Divided by 350,000,000 people . Equals 108,571,000, 000 Billion Dollars , each American owes the future . So this is small change . We had a real good time, ” Baby Boomers” . Don’t let the door hit you on the way out !


-48

True if only 350 people lived in the USA. However, there are, in fact, something like 350 MILLION people living in the USA. Too bad there is a hiring freeze at the county. Sounds like they could use some math wizards.


24

You truly are a math wizard .


-2

You should work for the Government .


-3

But Wait! I need more fluorescent bike lanes! Where will the money come from?


87

Those stupid lanes are the cities, not county.


15

I think pay cuts are in order. All Department heads 12 percent for 24 months. Supervisors and middle management 10 percent, Rank and file, 5 percent, all for 24 months, just a thought.


73

As a gesture of good will BOS should cut their pay 14 percent.


65

The rank and file staff went through layoffs last July. Staff is also currently going through “reclassifications” which equates to demotions and pay cuts. No word about changes for upper management though.


12

Same as it ever was….20 years ago the county comptroller revealed that the county had a structural deficit going on. Back then, all agencies and departments took a hit , except emergency services. Look for a repeat of that scenario.

Administrators and unions set everything to best-case revenues. Very foolish, as the downward trend will continue with no rescue in sight. Ever.

Better hope goofy AI can cover some of those jobs, or have the signage contractor start making some” Gone Fishin’ “ signs soon.

Supervisors – welcome to the ugly side of governance. Making hard decisions on behalf of the community and taxpayers.


72

Keep voting yourself pay raises for a sub par performance.


74

“$4 million to $11 million” shortfall, actually a few times more if you were to count the under funded pension liability, and yet county officials refuse to address the root cause, outrageous administration compensation and they refuse to cut there first.


125

Every now and then you make a statement I completely agree with, this is one of those times. Well stated.


29

Yes, cutting admin salaries is a good start, but frankly a drop in the bucket and cuts there are more of a gesture than a solution. The simple fact is that 75% of the budget is salaries and there are just too many salaries. Why? Simple, too many programs that require bodies. Old man is hoping that AI may solve some of that, but it won’t happen soon enough. What department heads need to do is cut programs and create incentives for “creators” who will generate revenue through development fees, property taxes and sales tax. Cutting regulations, reducing fees and red tape, incentivizing development by improving permit times (time is money in the development world) and taking an axe to Planning and Building. That department is the bane of the county system and has been run into the ground by shear lack of leadership and accountability, and it’s been that way for a decade. There is no one in administration who can fix it. It has to come from a consultant team.


That would be a good start. Public Works is a major drain, and stupid projects like a $1M temporary bridge are an example (I’m positive there are many more). Finally, Social Services is a bloated non-revenue generating department that just sucks the budget dry. A hard and difficult look needs to happen there and only vital (not essential) programs should remain.


All that means layoffs or terminations. But difficult times require difficult solutions. And that folks is the ONLY way to balance the budget.


26

About two thirds of the County’s total budget is salaries. About 45% of the salaries budget is for Sheriff-Jail, Fire, and Probation.


17

Sounds like a reply from a county bean counter. No, cut all bean counter salaries. Don’t cut the salaries of those actually digging the ditches.


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