San Mateo County releases $5.5 billion budget update for fiscal year 2025-26
San Mateo County, California – The updated $5.5 billion budget for San Mateo County for the 2025-26 fiscal year has been made public. The county wants to keep important services running while getting ready for possible financial problems that may come up because of changes in state and federal legislation. The Board of Supervisors will look at the plan on Tuesday, September 23. It shows changes that have been made since the start of the fiscal year on July 1.
The new spending plan takes into consideration year-end rollovers, changes in state and federal revenue, and increased health care costs for employees. It also sends new money to certain health and public safety programs. The budget adds approximately $610 million to spending and allows 24 more jobs, bringing the total number of workers in the county to 5,889.
Michael Callagy, the county executive, said that the most important thing is to maintain the services that tens of thousands of people use every day. This involves running clinics like the Daly City Health Center and support offices across the county that help people with food and shelter.
“We don’t control what happens in Sacramento or Washington, but we can prepare responsibly here at home,” Callagy said. “Through this Board’s careful fiscal stewardship, we’re protecting the services residents count on while keeping the County on solid financial footing.”
But uncertainty is still a big concern. County officials stated that decisions made in Washington in the future could have an effect on Medi-Cal, food benefits, and other safety-net programs. These expenses could be passed on to local governments. Leaders of the Human Services Agency said that CalFresh is one program that is in danger. About 2,000 people in the county are now getting help with food through a waiver that might be taken away, which would make them ineligible for food assistance.
The County is also dealing with a lack of money because of the state’s Vehicle License Fee Adjustment Amount. The state only paid back nearly two-thirds of the money it was supposed to in the last fiscal year, which left San Mateo County $22.3 million short. Reserves made up for the gap, but officials say this can’t go on forever. The County has sued for $38 million in payments that it and 20 other local communities are owed.
The General Fund reserves for San Mateo County are at $581.6 million, which is 16.9% of net appropriations. Leaders claim that this balance lets the County deal with short-term problems while still paying for important services.
Read also: San Mateo County to host Child Care Town Hall on September 16 at Main Library
You can get the full September Revisions FY 2025-26 document from the County’s Office of Budget Policy and Performance.
