Mar 17, 2026 Board Meeting

[00:00:03]

GOOD MORNING AND WELCOME TO THE MARCH 17, 2026 MEETING OF THE MERCED COUNTY BOARD OF SUPERVISORS.

[CALL TO ORDER]

[CLOSED SESSION ITEMS]

AND SMALLWOOD VERSUS COUNTY OF MERCED, MERCED SUPERIOR COURT, CASE NUMBER 23CV-04212.

THE PUBLIC WILL BE PROVIDED AN OPPORTUNITY TO COMMENT ON ANY MATTER TO BE CONSIDERED IN CLOSED SESSION PRIOR TO THE BOARD'S ADJOURNING INTO THE CLOSED SESSION, TESTIMONY IS LIMITED TO THREE MINUTES PER PERSON.

AT THIS TIME I'LL OPEN UP PUBLIC COMMENT FOR CLOSED SESSION ITEMS. THE PUBLIC COMMENT PERIOD IS NOW CLOSED AND WE WILL NOW ADJOURN INTO CLOSED SESSION.

GOOD MORNING. WELCOME BACK TO THE MARCH 17, 2026 MEETING OF THE MERCED COUNTY SUPERVISORS.

[10:00 A.M. REGULAR MEETING]

WE WILL NOW START WITH THE INVOCATION LED BY ORDAINED MINISTER JOHN CARDENAS WITH THE PLANADA COMMUNITY CHURCH AND SUPERVISOR PACHECO WILL THEN LEAD US IN THE PLEDGE OF ALLEGIANCE. GOOD MORNING EVERYBODY.

ON THE AGENDA. SO I'LL MAKE IT SHORT AND SWEET. AND PLUS, THE LORD LIKES WHEN I DON'T DRAG IT TOO LONG.

SO TO THE POINT. YES, THAT'S WHAT HE TELLS ME.

YES. DEAR ETERNAL GOD, PROVIDER OF COMPASSION AND WISDOM.

LORD, WE JUST ASK THAT YOU BLESS OUR SUPERVISORS, BLESS THE STAFF OF THE COUNTY, AND BLESS ALL THE MEMBERS OF THIS COMMUNITY.

WE ASK THAT IN OUR DISCUSSIONS THERE WITH RESPECT, OUR DECISIONS ARE WITH INTEGRITY AND OUR ACTIONS ARE WITH COMPASSION. LORD, WATCH OVER THIS COUNTY.

BLESS US, KEEP US SAFE, KEEP US AWAY FROM EVIL.

AND LORD, IN ALL THAT HAPPENS IN THIS MEETING, PLEASE MAKE IT FOR THE GREATER GOOD OF THIS COUNTY.

AND WE ASK THIS IN JESUS NAME. OH HEAVENLY FATHER.

AMEN. THANK YOU. READY? SALUTE. I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA.

AND TO THE REPUBLIC FOR WHICH IT STANDS ONE NATION, UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

IT'S NOW TIME FOR PUBLIC OPPORTUNITY TO SPEAK ON ANY MATTER OF PUBLIC INTEREST WITHIN THE BOARD'S JURISDICTION,

[PUBLIC COMMENT]

AT THIS TIME I'LL OPEN IT UP FOR PUBLIC COMMENT.

AGAIN, THIS IS FOR NON AGENDA ITEMS ONLY. SINGLE FILE LINE TO THE LEFT PLEASE.

ALL RIGHT. GOOD MORNING CHAIR, BOARD OF SUPERVISORS CEO AND COUNTY COUNSEL.

MERCED COUNTY IS CURRENTLY UPDATING ITS MULTI-JURISDICTIONAL LOCAL HAZARD MITIGATION PLAN IN PARTNERSHIP WITH THE SIX CITIES AND MANY OTHER STAKEHOLDERS AND PARTNERS.

THIS UPDATE WILL FOCUS ON IDENTIFYING BOTH NATURAL AND HUMAN CAUSED THREATS AND HAZARDS THAT CAN CAUSE IMPACTS TO OUR COMMUNITIES, AND DEVELOPING STRATEGIES TO REDUCE LONG TERM RISKS TO PEOPLE, PROPERTY, AND INFRASTRUCTURE.

AS PART OF THE PROCESS, WE INVITE MEMBERS TO ATTEND, COMMUNITY MEMBERS TO ATTEND THE PUBLIC MEETING TO SHARE THEIR INPUT AND EXPERIENCES.

THE MEETING WILL INCLUDE A BRIEF OVERVIEW OF THE PROJECT AND PROVIDE AN OPPORTUNITY FOR THE PUBLIC TO HELP INFORM AND SHAPE THE UPDATED LOCAL HAZARD MITIGATION PLAN.

THIS EVENING, THERE WILL BE A MEETING HELD FROM 6 P.M.

TO 8 P.M. IN THE CITY OF MERCED AT THE CIVIC CENTER SAM PIPES ROOM AT 678 WEST 18TH STREET IN MERCED.

THANK YOU. THANK YOU.

GOOD MORNING BOARD CEO HENDRICKSON. GOOD MORNING. COUNTY COUNSEL.

[00:05:03]

LUPE HAS BEEN WITH THE COUNTY FOR OVER 24 YEARS.

SHE STARTED AT HSA AS A FAMILY SERVICES REPRESENTATIVE.

SHE THEN WORKED HER WAY UP WITHIN THAT JOB FAMILY AS A FAMILY SERVICES LEAD AND A FAMILY SERVICES SUPERVISOR BEFORE TRANSITIONING TO ADMINISTRATION IN HSA AS A STAFF SERVICE ANALYST AND A PROGRAM MANAGER. WHEN MANY PEOPLE WERE LEAVING PUBLIC HEALTH IN 2022, LUPE JOINED AS OUR DEPARTMENT COMPLIANCE MANAGER.

SHE HAS BEEN WITH THE DEPARTMENT FOR ALMOST FOUR YEARS AND HAS SEEN SIGNIFICANT CHANGES THROUGH THOSE FOUR YEARS.

I THINK THAT HER STORY AND CAREER PATH IS SO INSPIRING, ESPECIALLY, HOPEFULLY TO NEW COUNTY WORKERS JUST STARTING OUT IN THEIR CAREERS.

IN ADDITION, LUPE IS A PLANADA NATIVE, AND SHE HAS ALSO SUPPORTED INTERPRETATION EFFORTS IN PLANADA, PROVIDING TRANSLATION AT COMMUNITY MEETINGS AS PART OF THE FLOODING RECOVERY WORK.

AND I'M JUST REALLY THRILLED TO WELCOME LUPE AS PART OF OUR EXECUTIVE TEAM.

[APPLAUSE] GOOD MORNING, BOARD MEMBERS AGAIN, MY NAME IS LUPE CISNEROS.

I AM HONORED FOR THE OPPORTUNITY TO BE SERVING AS THE NEW ASSISTANT DIRECTOR OVER ADMINISTRATION.

I AM PASSIONATE AND COMMITTED TO THE INTEGRITY AND EQUALITY OF OUR COMMUNITY.

I LOOK FORWARD TO WORKING CLOSELY WITH MY DIRECTOR, THIS BOARD, AND DIFFERENT COMMUNITY ORGANIZATIONS.

[INAUDIBLE] AND ALONGSIDE WITH OUR DEDICATED STAFF.

YOU KNOW, FOR THE PUBLIC HEALTH PROGRAMS. YOU KNOW, I AM COMMITTED TO TRANSPARENCY, ACCOUNTABILITY, AND DELIVERING THE RESULTS THAT REFLECT THE CONFIDENCE YOU HAVE PLACED IN OUR DEPARTMENT.

THANK YOU FOR THIS OPPORTUNITY. WELCOME.

GOOD MORNING. MY NAME IS BALTAZAR QUINTE. I'M HERE BECAUSE COMCAST IS TRYING TO RUN A 20,000 $25,000 SHAKEDOWN ON MY FAMILY FOR A STANDARD INTERNET CONNECTION. TO JUSTIFY THE PRICE, THEIR EXECUTIVE OFFICE SENT ME A FORMAL LETTER, WHICH I HAVE RIGHT HERE TO VALIDATE. THE EQUIPMENT DOES NOT EXIST NEAR MY HOME.

THEY TOLD ME I'M IN THE CONNECTIVE DESERT. THE PROBLEM IS THAT I ACTUALLY WENT OUTSIDE AND COMCAST ASSET 5566 WHICH IS THIS ONE RIGHT HERE IS LITERALLY 390 FT AWAY FROM MY HOUSE. APPARENTLY THE COMCAST TEAM DID NOT READ THEIR OWN MAPS OR THEY JUST ASSUME I WOULDN'T BOTHER TO CHECK THEIR WORK. THIS ISN'T A GLITCH. THIS IS A BAD FAITH.

BAD FAITH MAPPING. COMCAST TELLS THE FCC THAT THEY SERVE MY ADDRESS SO THEY BLOCK COMPETITORS FROM COMING IN.

OH, THEY TELL ME THAT THE EQUIPMENT IS A MILE AWAY TO CHARGE ME THE PRICE OF A NEW TRUCK FOR A WIRE.

BUT HERE'S THE KICKER. JUST LOOK AT THESE PHOTOS THIS MORNING.

WHICH IS THESE RIGHT HERE. THEY WHILE THEIR OFFICE WAS BUSY EMAILING ME LYING I FOUND FRESH TRENCHES RUNNING THROUGH ALONG THE ROAD OF THE ASSET 5994FM.

THEIR FIBER BACKBONE. THEY TOLD ME THAT IT WOULD COST $25,000 TO BUILD OUT TO ME.

BUT LOOK AT THE DIRT THEY ALREADY WERE DIGGING.

THEY WEREN'T BUILDING FOR ME, BUT SCRAMBLED TO COVER THEIR OWN TRACKS BECAUSE THEY REALIZED I FOUND THE HARDWARE THEY CLAIMED THAT DIDN'T EXIST. THEY THOUGHT I COULDN'T.

THEY THOUGHT THEY COULD BURY EVIDENCE BEFORE THE MEETING STARTED, BUT I GOT THE PHOTOS FIRST.

I'M NOT HERE TO ASK FOR A FAVOR. I'M HERE FOR ACCOUNTABILITY, I'M DEMANDING A STANDARD INSTALL INSTALLATION AT STANDARD PRICE.

SERVICE CREDITS FOR THE TIME I'VE SPENT DOING COMCAST'S JOB FOR THEM AND A FORMAL AUDIT ON THEIR FRANCHISE AGREEMENT.

IF THEY'RE COMFORTABLE LYING TO ME ABOUT 390FT OF CABLE.

THEY'RE DEFINITELY COMFORTABLE LYING TO THIS BOARD.

[00:10:01]

BALTAZAR, THANK YOU FOR REACHING OUT. WE HAD A GOOD CONVERSATION YESTERDAY.

WE WILL HOOK YOU UP WITH ONE OF OUR STAFF MEMBERS, GINA.

SHE'S GOING TO DISCUSS THIS WITH YOU. THANK YOU.

IS THERE ANYBODY ELSE? PUBLIC COMMENT PERIOD IS NOW CLOSED FOR NON AGENDA ITEMS. AT THIS TIME, WE HAVE A PRESENTATION UPDATE ON HR ONE.

[PRESENTATIONS]

THANK YOU MARK. THANK YOU, MR. CHAIRMAN. AGAIN, GOOD MORNING TO BOTH OF YOU AND THE MEMBERS OF THE BOARD.

JUST TO BRIEFLY INTRODUCE THIS ITEM, THIS IS A, AN ISSUE OF GROWING IMPORTANCE FOR COUNTIES ACROSS CALIFORNIA.

AGAIN, HR ONE, AS IT HAS POTENTIAL IMPLICATIONS FOR LOCAL GOVERNMENTS EXACTLY LIKE MERCED COUNTY.

SO WHILE FEDERAL LEGISLATION CAN SOMETIMES FEEL DISTANT, CHANGES AT THE FEDERAL LEVEL CAN OFTEN IMPACT THE SERVICES THAT COUNTIES ARE RESPONSIBLE FOR DELIVERING, AS IT MAY NECESSITATE SHIFTS IN LOCAL SPENDING PRIORITIES.

FOR MERCED COUNTY, PROPOSALS ASSOCIATED WITH HR ONE RAISE IMPORTANT QUESTIONS ABOUT FUNDING STABILITY, PROGRAM REQUIREMENTS, AND THE LONG TERM SUSTAINABILITY OF SERVICES THAT MANY OF OUR RESIDENTS RELY UPON.

AS A COUNTY, WE SERVE AS THE FRONT LINE FOR PROGRAMS RELATED TO HEALTH AND HUMAN SERVICES.

AND WHEN POLICIES ARE FUNDING STRUCTURES SHIFT.

COUNTIES ARE OFTEN TASKED WITH IMPLEMENTING THOSE CHANGES WHILE CONTINUING TO ENSURE THAT SERVICES REMAIN ACCESSIBLE FOR OUR COMMUNITIES.

AND SO FOR THAT REASON, WE FELT IT WAS IMPORTANT TO FOR THIS BOARD AND FOR THE COMMUNITY AND OUR DEPARTMENTS TO STAY WELL INFORMED AND UNDERSTAND THOSE CHALLENGES THAT LEGISLATION LIKE THIS MAY POSE FOR MERCED COUNTY AND OTHERS THROUGHOUT THE STATE OF CALIFORNIA.

SO TO HELP PROVIDE THAT PERSPECTIVE, WE ARE FORTUNATE TO BE JOINED TODAY BY MR. BRENDAN MCCARTHY. HE'S A SENIOR LEGISLATIVE ADVOCATE WITH THE CALIFORNIA STATE ASSOCIATION OF COUNTIES. HE WORKS CLOSELY WITH COUNTIES ACROSS THE STATE AND HAS DEEP EXPERTISE IN THIS AREA OF POLICY AND HOW IT AFFECTS LOCAL SERVICE DELIVERY.

HE'S GOING TO WALK US THROUGH THE KEY ELEMENTS OF H.R. ONE AND WHAT IT COULD MEAN FOR COUNTIES LIKE US.

SO, BRENDAN, THANK YOU FOR JOINING US TODAY. THANK YOU.

OKAY. THANK YOU. IT'S A PLEASURE TO BE HERE WITH YOU THIS MORNING.

THANK YOU FOR YOUR TIME. SO I WILL BEGIN THE PRESENTATION.

I'M BRENDAN MCCARTHY WITH CSAC. THE AGENDA HERE IS TO TALK ABOUT THE MAJOR PROVISIONS OF HR 1, HOW THOSE WE ANTICIPATE THOSE PROVISIONS WILL IMPACT COUNTIES.

AND THEN THE STEPS THAT CSAC IS TAKING IN SACRAMENTO TO ADVOCATE ON BEHALF OF THE COUNTIES.

SO HR 1 WAS SIGNED INTO LAW BY THE PRESIDENT IN JULY.

IT MAKES A NUMBER OF CHANGES TO MEDICAID, MEDI-CAL IN CALIFORNIA, AND SNAP, WHICH IS CALFRESH IN CALIFORNIA, AS WELL AS A NUMBER OF OTHER CHANGES TO TAX POLICY AND IMMIGRATION ENFORCEMENT THAT ARE OUTSIDE THE SCOPE OF MY PRESENTATION HERE.

IN TERMS OF THE IMPACTS TO MEDI-CAL AND CALFRESH, THE MAJOR ONES THAT WE ANTICIPATE HAVING IMPACT ON COUNTIES ARE MEDI-CAL COMMUNITY ENGAGEMENT REQUIREMENTS, WHICH PEOPLE OFTEN REFER TO AS WORK REQUIREMENTS.

CHANGES TO MEDI-CAL ELIGIBILITY, CHANGES TO FINANCING RULES IN MEDI-CAL, CHANGES TO CALFRESH WORK REQUIREMENTS, AND THEN COST SHIFTS FOR CALFRESH ADMINISTRATION.

HERE ARE SOME OF THE MAJOR IMPACTS OF I WON'T READ THIS ALL, BUT STARTING WITH COMMUNITY ENGAGEMENTS.

SO IT REQUIRES 80 HOURS A MONTH. THAT CAN BE WORK, BUT IT CAN ALSO BE EDUCATION OR OTHER VOLUNTEER WORK.

THERE ARE EXEMPT POPULATIONS THAT ARE EXEMPTED BY HR ONE, FOR EXAMPLE, CHILDREN, FOSTER YOUTH, PARENTS, CARETAKER RELATIVES AND THOSE WHO ARE MEDICALLY FRAIL.

THAT IS A KEY ISSUE. THE CMS, THE CENTERS FOR MEDICARE AND MEDICAID SERVICES ARE REQUIRED TO PUT OUT GUIDANCE ON A NUMBER OF HR ONE PROVISIONS, INCLUDING HOW TO DETERMINE MEDICAL FRAILTY. UNFORTUNATELY, THOSE GUIDELINES ARE NOT DUE UNTIL JUNE OF 2026, SO IT GIVES A RELATIVELY SHORT AMOUNT OF TIME BETWEEN WHEN THOSE DROP AND IMPLEMENTATION OF MANY OF THESE PROVISIONS BEGIN IN JANUARY OF 2027.

THERE ARE ALSO STATES HAVE THE AUTHORITY TO PROVIDE SOME OPTIONAL EXEMPTIONS.

ONE OF THEM IS COUNTIES WITH A HIGH UNEMPLOYMENT RATE UNDER THE DEFINITIONS IN HR ONE CURRENTLY 22 COUNTIES, INCLUDING MERCED COUNTY, WOULD HAVE AN EXEMPTION FOR THE COMMUNITY ENGAGEMENT REQUIREMENTS.

BUT AS I MENTIONED, THE GUIDANCE IS NOT OUT UNTIL JUNE.

AND SO WE'LL STILL BE WAITING ON DETAILS ABOUT DATA THAT WILL BE USED, HOW OFTEN THAT WILL BE UPDATED, WHICH WILL HAVE AN IMPACT ON COUNTIES. AND THEN THERE ARE SOME OTHER EXEMPTIONS THAT COUNTIES CAN OFFER.

THE STATE HAS NOT YET TAKEN ACTION TO DETERMINE WHICH OF THESE EXEMPTIONS THEY WILL TAKE.

[00:15:03]

MOST OF THE REQUIREMENTS GO INTO EFFECT JANUARY 1ST, 2027.

AND SO FOR ISSUES LIKE COMMUNITY ENGAGEMENT, THEN THAT ACTUALLY WILL HAPPEN UPON AN INDIVIDUAL'S REDETERMINATION.

SO IT DOESN'T ALL START JANUARY 1ST. IT WILL HAPPEN IN THE NORMAL COURSE OF PEOPLE EITHER APPLYING FOR MEDI-CAL OR THE REDETERMINATION DATE COMING UP.

THE DEPARTMENT OF HEALTH CARE SERVICES IS PLANNING TO DO AS MUCH WHAT THEY CALL EX PARTE REVIEW AS POSSIBLE.

THAT JUST MEANS USING AVAILABLE DATA SOURCES.

SO TAX DATA FROM FTB, THE IRS, EDD DATA, AS WELL AS THEY ARE EXPLORING SOME OTHER THIRD PARTY DATA SOURCES TO THE EXTENT THAT THEY CAN AND COUNTIES CAN LOOK AT INFORMATION THAT THEY CAN VALIDATE THAT SOMEONE IS MEETING THE WORK REQUIREMENTS WITHOUT THAT PERSON HAVING TO DEMONSTRATE IT WITH PAPER.

THE DEPARTMENT OF HEALTH CARE SERVICES ANTICIPATES ABOUT 3.5 MILLION PEOPLE WILL BE SUBJECT TO THE WORK REQUIREMENTS.

THEY, IN THEIR NOVEMBER ESTIMATE, ASSUMED 1.4 MILLION PEOPLE WILL LOSE COVERAGE.

THAT IS NOT NECESSARILY BECAUSE THEY ARE NOT MEETING THE REQUIREMENTS IN STATES THAT PILOTED COMMUNITY ENGAGEMENT PILOTS COMMUNITY ENGAGEMENT REQUIREMENTS.

MOST PEOPLE WHO LOST COVERAGE LOST IT BECAUSE OF PAPERWORK ISSUES, NOT BEING ABLE TO DOCUMENT THAT THEY WERE WORKING OR ENGAGED.

SO THAT WOULD BE A MIX OF PEOPLE WHO GENUINELY DON'T QUALIFY AND WHO COULDN'T DEMONSTRATE THAT THEY HAD MET THE REQUIREMENTS.

THE OTHER ELIGIBILITY CHANGES IS THAT FOR INDIVIDUALS IN THE ACA EXPANSION, THESE ARE CHILDLESS ADULTS.

THEY WILL HAVE THEIR VERIFICATION REDETERMINED EVERY SIX MONTHS INSTEAD OF EVERY YEAR.

THERE ARE CERTAIN POPULATIONS WHO HAVE LEGAL RESIDENCE BUT NOT CITIZENSHIP, WHO HISTORICALLY, PREVIOUSLY WERE ELIGIBLE FOR FULL SCOPE MEDI-CAL.

THEY WILL NOW BE LIMITED TO LIMITED SCOPE BENEFITS, PREGNANCY AND EMERGENCY SERVICES.

THESE ARE ASYLEES REFUGEES AND SOME OTHER LAWFULLY PRESENT GROUPS.

AND THEN HR ONE IMPOSES COST SHARING REQUIREMENTS FOR CERTAIN SERVICES FOR THE CHILDLESS ADULTS POPULATION, BUT DEFERS TO THE STATES TO SET WHAT THAT COST SHARING REQUIREMENT WOULD BE.

AND THAT DOESN'T GO INTO EFFECT FOR SEVERAL YEARS.

THERE ARE ALSO SOME FINANCING CHANGES THAT ARE GOING TO BE VERY SIGNIFICANT.

THE FIRST ONE IS ON PROVIDER TAXES. THIS IS THE BIGGEST IMPACT HERE IS WHAT IS KNOWN AS THE MANAGED CARE ORGANIZATION TAX.

THIS IS A FINANCING MECHANISM THAT CALIFORNIA AND ALMOST EVERY OTHER STATE USE IN SOME FASHION TO PUT A TAX ON MANAGED CARE PLANS TO DRAW DOWN ADDITIONAL MONEY TO SUPPORT THEIR MEDICAID PROGRAMS. WE HAVE DONE THIS. CALIFORNIA HAS DONE THIS FOR YEARS.

HR 1 PUTS SOME LIMITATIONS ON THAT. IT THE LIMIT IT'S VERY TECHNICAL.

BUT I WOULD SAY JUST IN SUMMARY, THE LIMITATIONS WILL SHRINK THE SIZE OF POTENTIAL PROVIDER TAXES AND ALSO CHANGE THE WAY THAT THEY OPERATE, WHICH MAKES THEM MUCH LESS BENEFICIAL FOR STATES.

WHILE THIS WAS CHANGED IN HR 1, THE TRUTH IS ADMINISTRATIONS OF BOTH PARTIES OVER MANY YEARS HAVE BEEN LOOKING TO MAKE CHANGES TO THIS BECAUSE OF A SENSE THAT STATES HAVE HAVE PUSHED WHAT IS REALLY BEYOND THE INTENT OF PROVIDER TAXES.

SO THIS WAS PROBABLY COMING AT SOME POINT, BUT NOW IT IS COMING BECAUSE OF HR 1.

DOESN'T DIRECTLY IMPACT COUNTIES, BUT DOES PUT A LOT OF FINANCIAL PRESSURE ON THE STATE, WHICH IS ALWAYS THEN RISKY FOR COUNTIES BECAUSE IT LIMITS THEIR ABILITY TO ASSIST.

THE HR 1 ALSO LIMITS FINANCING MECHANISM CALLED STATE DIRECTED PAYMENTS.

THIS IS A TOOL THAT CALIFORNIA AND PUBLIC HOSPITALS USE TO SUPPLEMENT LOW MEDI-CAL RATES IN CALIFORNIA.

PUBLIC HOSPITALS PAY THE NONFEDERAL SHARE FOR INPATIENT HOSPITAL.

SO THE STATE GENERAL FUND DOES NOT CONTRIBUTE. THE PUBLIC HOSPITALS PAY IT WITH THEIR OWN FUNDS. BECAUSE THEY ARE PAYING IT FOR THEMSELVES AND BECAUSE THE MANAGED CARE RATES ARE LOW THEY USE THIS FINANCING MECHANISM CALLED STATE DIRECTED PAYMENTS, TO SUPPLEMENT THOSE LOW RATES.

THIS H.R. 1 PUTS LIMITS ON THOSE WHICH ARE GOING TO REDUCE THE ABILITY OF CALIFORNIA PUBLIC HOSPITALS TO MAKE USE OF THAT.

AND THEN H.R. 1 ALSO REDUCES THE FEDERAL COST SHARING FOR UNDOCUMENTED ADULTS WHO ARE IN THE ACA EXPANSION AGE GROUP SO CHILDLESS ADULTS. CURRENTLY, THEY ARE ELIGIBLE FOR 90% FEDERAL COST SHARING FOR THE EMERGENCY SERVICES THEY'RE ELIGIBLE FOR THAT WILL DROP TO 50%.

THAT HAS AN IMPACT ON THE STATE, BUT ALSO THE PUBLIC HOSPITALS WHICH PAY THAT NONFEDERAL SHARE.

IN TERMS OF CALFRESH, THERE IS AN EXISTING WORK REQUIREMENT FOR ABLE BODIED ADULTS WITHOUT DEPENDENTS, WHAT ARE FREQUENTLY REFERRED TO AS ABODS. HOWEVER, THERE HAS BEEN A STATEWIDE WAIVER OF THAT REQUIREMENT FOR MANY YEARS BECAUSE OF ECONOMIC CONDITIONS. HR 1 CHANGES THAT, AND IT GETS RID OF STATEWIDE WAIVERS AND ONLY ALLOWS COUNTY LEVEL WAIVERS.

CURRENTLY, I BELIEVE THREE COUNTIES WOULD MEET THE REQUIREMENTS OF THAT, THE CALFRESH ABOD WAIVER.

HR 1 ALSO EXPANDS WHO IS SUBJECT TO THE ABOD WORK REQUIREMENTS BY RAISING THE AGE LIMIT, REDUCING THE AGE OF DEPENDENTS THAT MAKE ONE ELIGIBLE, AND GETTING RID OF SOME CATEGORICAL EXEMPTION, LIKE FOR FOSTER YOUTH.

[00:20:05]

ALTHOUGH SOME OF THOSE FOLKS WOULD THEN BECOME ELIGIBLE FOR A STATE PROGRAM CALLED CFAP, WHICH IS CALFRESH STATE FUNDED CALFRESH BENEFITS FOR CERTAIN LAWFULLY PRESENT BUT FEDERALLY INELIGIBLE BENEFICIARIES. HR 1 ALSO SHIFTS ADMINISTRATIVE COSTS FOR CALFRESH TO THE STATE AND COUNTIES. IT REDUCES THE FEDERAL SHARE TO 25%.

AND UNDER CURRENT LAW, THE STATE COUNTY COSTS WOULD GO UP BECAUSE COUNTIES HAVE A STATUTORY SHARE OF THAT COSTS.

THE COUNTY WELFARE DIRECTORS ASSOCIATION ANTICIPATES THAT IN 2026-27, THAT WOULD COST COUNTIES ABOUT $150 MILLION.

AND THEN IN FISCAL YEAR 27, 28 COST COUNTIES ABOUT $211 MILLION.

THERE IS ALSO A LOOMING SHIFT IN THE BENEFIT COSTS FOR CALFRESH [INAUDIBLE].

CURRENTLY, FEDERAL GOVERNMENT PAYS ALL CALFRESH BENEFITS. BUT THERE WAS A CHANGE THERE BASED ON WHAT'S CALLED THE PER THE PAYMENT ERROR RATE.

THIS IS A MEASURE OF ERRORS IN DETERMINING THE BENEFIT AMOUNTS AND OVERALL ELIGIBILITY FOR PEOPLE ENROLLED IN CALFRESH.

DEPENDING ON THE LEVEL OF THE PER IN A GIVEN STATE.

THEN THERE'S A FORMULA THAT REQUIRES THAT STATE THEN TO BEGIN PAYING THE BENEFIT COSTS.

CALIFORNIA'S CURRENT PER THE LATEST MEASUREMENT YEAR WAS 11%, WHICH IS SLIGHTLY ABOVE, BUT IN LINE WITH MOST OTHER STATES.

HOWEVER, IF WE THE CALIFORNIA REMAINS AT 11%, THAT WOULD REQUIRE THE STATE TO PAY UP TO $2 BILLION A YEAR IN THE BENEFIT COST STARTING IN 27, 28. IMPORTANTLY, THE MEASUREMENT OF THE PER STARTED IN THE CURRENT FISCAL FEDERAL FISCAL YEAR, SO THAT WE'RE NOW IN THE MEASUREMENT YEAR TO DETERMINE WHAT THE PER IS, WHICH WILL THEN IMPACTS THE STATE, NOT COUNTIES DIRECTLY. BUT AGAIN, THIS IS ONE OF THESE ISSUES WHERE PRESSURES ON THE STATE BUDGET CAN TRICKLE DOWN TO COUNTY BUDGETS.

HERE IS THE TIMELINE. I'M NOT GOING TO GO THROUGH ALL OF THIS, BUT WANTED YOU AND YOUR STAFF TO HAVE THIS JUST AS A REFERENCE OF WHEN VARIOUS IMPACTS GO LIVE FROM HR 1. SO IN TERMS OF THE IMPACT OF HR 1 ON COUNTIES, WE SEE THIS AS FUNDAMENTALLY SHIFTING THE RESPONSIBILITY FOR KEY PROGRAMS BECAUSE AS PEOPLE LOSE MEDI-CAL IN PARTICULAR, THEY WILL MANY OF THOSE PEOPLE WHO HAVE MEDICAL NEEDS MAY COME TO COUNTIES AS PART OF THE COUNTY INDIGENT CARE MANDATE, WHICH I WILL TALK ABOUT. THIS IS GOING TO IMPOSE SIGNIFICANT COSTS ON THE COUNTIES.

SO THE MAJOR IMPACTS, AS I MENTIONED, FIRST ONE IS COUNTY INDIGENT CARE PROGRAMS. THERE ARE ALSO IMPACTS TO PUBLIC HOSPITALS AND THEN IMPACTS TO THE COUNTY ELIGIBILITY WORKFORCE.

THIS IS THE TOP LINE OF OUR ESTIMATE OF THE POTENTIAL FISCAL IMPACT ON COUNTIES ACROSS HR 1.

AND YOU'LL SEE OUR ESTIMATE IS 6 TO $9.5 BILLION PER YEAR, DEPENDING ON THE OUTCOMES OF HOW MANY PEOPLE LOSE COVERAGE, PARTICULARLY. AND THEN HOW MANY OF THOSE PEOPLE COME TO COUNTIES FOR CARE.

SO YOU CAN SEE THE FIRST ONE IS THE INDIGENT CARE PROGRAMS. WE ANTICIPATE ENROLLMENT CAN RANGE FROM JUST UNDER 420,000 TO 1.3 MILLION, DEPENDING ON HOW MANY PEOPLE SEEK SERVICES, WHICH WOULD COST BETWEEN 2 AND $5.5 BILLION PER YEAR.

THERE ARE ALSO COSTS TO PUBLIC HOSPITALS ANTICIPATED OVER TIME TO RISE TO $3.4 BILLION PER YEAR.

THEN WE ANTICIPATE COUNTY WORKFORCE COSTS TO IMPLEMENT THE WORK REQUIREMENTS IN MEDI-CAL.

THE ABOD WORK REQUIREMENTS. SIX MONTH REDETERMINATIONS OF $484 MILLION IN 26,27, RISING TO $574 MILLION IN 27,28. AND THAT ALSO I SHOULD POINT OUT, INCLUDES THE COST SHIFT OF CALFRESH ADMIN.

AND THEN THERE ARE SOME OTHER IMPACTS THAT WE HAVE NOT QUANTIFIED, BUT THERE COULD BE INCREASED DEMAND FOR COUNTY BEHAVIORAL HEALTH SERVICES OR COUNTY PUBLIC HEALTH SERVICES THAT WE HAVE NOT BEEN ABLE TO QUANTIFY.

SO THIS IS A QUESTION THAT WE HAVE HEARD A LOT IN SACRAMENTO ABOUT WHAT IS INDIGENT CARE.

THIS IS SOMETHING THAT HAS NOT BEEN A RELEVANT ISSUE IN SACRAMENTO FOR MANY YEARS.

AND WE AT CSAC HAVE BEEN DOING A LOT OF EDUCATING ON IT.

THE WELFARE AND INSTITUTIONS CODE, SECTION 17,000 CREATES A STATUTORY OBLIGATION ON COUNTIES TO PROVIDE BASIC MEDICAL CARE FOR THOSE WHO ARE LAWFULLY PRESENT.

THE COUNTIES ARE A PROVIDER OF LAST RESORT. EVERY COUNTY IS ALLOWED TO SET THEIR INDIVIDUAL STANDARDS.

ALTHOUGH I'LL GET TO THE COUNTIES, THEY HAVE ONE UNIFORM SET OF BENEFITS ACROSS THOSE 35 COUNTIES.

OTHER COUNTIES SET COST SHARING REQUIREMENTS AND SET THE PACKAGE OF BENEFITS.

SO THERE'S THREE BUCKETS OF THE WAYS COUNTIES DELIVER IT.

THE FIRST IS CMSP, THE 35 LARGELY NORTHERN PLUS IMPERIAL COUNTY PUBLIC HOSPITAL COUNTIES, COUNTIES THAT OPERATE A PUBLIC HOSPITAL SYSTEM, AND THEN ARTICLE 13 COUNTIES, WHICH ARE ALL THE REST THAT INCLUDES MERCED COUNTY, ALTHOUGH MERCED IS ELIGIBLE TO JOIN CMSP IF YOU WERE TO ELECT TO.

AFTER THE IMPLEMENTATION OF THE AFFORDABLE CARE ACT AND THE EXPANSIONS OF COVERAGE IN MEDI-CAL AND COVERED CALIFORNIA, THE DEMAND FOR THESE PROGRAMS DROPPED DRAMATICALLY.

SOME OF THESE PROGRAMS STILL EXIST, BUT VERY SMALL PROGRAMS, AND MANY OF THEM ARE TOTALLY DEFUNCT AND HAVE NO ENROLLEES.

[00:25:05]

THEY'RE DOWN TO 3 OR 4000 PEOPLE. AMONGST THE ARTICLE 13 COUNTIES, THAT'S 11 COUNTIES, THERE'S PROBABLY LESS THAN 100 PEOPLE ENROLLED ACROSS ALL OF THOSE COUNTIES. AND VERY IMPORTANTLY, AS THE DEMAND FOR THESE PROGRAMS DECLINED, THE STATE REDIRECTED THE REALIGNMENT DOLLARS THAT HAD FUNDED THESE PROGRAMS. SO BEFORE ACA COUNTIES USED HEALTH REALIGNMENT FUNDING TO FUND THESE PROGRAMS, THAT MONEY WAS REDIRECTED BY THE STATE TO PAY FOR CALWORKS BENEFITS, TAKING THE FUNDING SOURCE AWAY FROM THE COUNTIES TO PAY FOR THESE PROGRAMS. HERE IS JUST A MAP FOR REFERENCE OF THE COUNTY MODELS.

WE'VE DONE A LOT OF EDUCATING ABOUT WHAT INDIGENT CARE IS AND IS NOT.

THE MAIN POINT IS IT IS NOT COMPREHENSIVE HEALTH CARE COVERAGE, ALTHOUGH THE BENEFITS VARIED BY COUNTY, THEY, IT TENDS TO BE SOMETHING JUST ABOVE EMERGENCY CARE.

SO BASIC LIFE SAVING CARE, SOME SPECIALTY CARE.

MAY IN SOME COUNTIES, SOME LIMITED PREVENTATIVE CARE, BUT NOT COMPREHENSIVE AT ALL.

SECTION 17000. AND THE CASE LAW SURROUNDING IT IS CLEAR THAT COUNTIES ARE NOT REQUIRED TO PROVIDE SERVICES TO PEOPLE WHO ARE UNDOCUMENTED.

SOME COUNTIES ELECTED TO BUT IT IS NOT A MANDATE.

AT SECTION 17000, OBLIGATIONS DO NOT EXTEND TO MENTAL HEALTH CARE OR ANY OTHER BEHAVIORAL HEALTH CARE.

SO TO DETERMINE THE POTENTIAL COST TO COUNTIES FROM THIS CSAC WORKING WITH OUR AFFILIATED ORGANIZATIONS FOCUSED ON THE POPULATION OF PEOPLE WHO WOULD BE LOSING COVERAGE BECAUSE OF THE MEDI-CAL COMMUNITY ENGAGEMENT REQUIREMENTS.

AND THEN WE MODEL BASED ON ESTIMATES OF THE DEPARTMENT OF HEALTH CARE SERVICES, THE NUMBER OF PEOPLE WHO ARE ANTICIPATED TO LOSE CARE COVERAGE.

THEN WE MODELED DIFFERENT ENROLLMENT SCENARIOS. IN OTHER WORDS, HOW MANY PEOPLE ARE ACTUALLY LIKELY TO COME TO THE COUNTY SEEKING SERVICES? WE WORKED WITH THE AFFILIATES TO DEVELOP PER MEMBER PER MONTH OR PER PERSON PER MONTH.

SINCE IT'S NOT REAL HEALTH INSURANCE COSTS FOR THESE MODELS.

THE PER PERSON PER COST NUMBERS RANGE FROM ABOUT $350 A MONTH TO AROUND $550 A MONTH, WHICH IS QUITE EXPENSIVE IF YOU THINK ABOUT HOW NARROW THE BENEFIT PACKAGE IS. BUT I THINK PART OF THE REASON HERE IS PEOPLE WHO HISTORICALLY SOUGHT OUT INDIGENT CARE WERE PEOPLE WHO HAD A HEALTH CARE NEED.

AND SO YOU HAD A RISK POOL THAT WAS BIASED TOWARDS PEOPLE THAT WERE USING MORE SERVICES.

AS I MENTIONED BEFORE, BASED ON THESE SCENARIOS, WE ANTICIPATE ENROLLMENT OF BETWEEN 420,000 AND 1.3 MILLION, WHICH IS COST OF 2 TO $5.5 BILLION. I MENTIONED THE AB 85 REDIRECTION.

THE CURRENT REDIRECTION AMOUNT IS ABOUT $700 MILLION A YEAR.

BUT THAT UNDERCOUNTS A LITTLE BIT BECAUSE IN ADDITION TO REDIRECTING FUNDS, AB 85 CHANGED THE FORMULAS FOR THE GROWTH IN HEALTH REALIGNMENT ACCOUNT FUNDS.

SO IT WOULD HAVE GROWN EVEN HIGHER THAT MAYBE SOMEWHERE IN THE RANGE OF $1 BILLION OR SO A YEAR, IF THEY HADN'T MADE THOSE CHANGES. BUT IT'S IMPORTANT TO NOTE, EVEN IF THOSE MONIES HAD NOT BEEN REDIRECTED AND THE GROWTH HAD NOT BEEN CHANGED, THAT WOULD NOT BE SUFFICIENT FUNDING TO PAY FOR THE COSTS OF THE PEOPLE WHO MAY COME BACK TO THE COUNTIES, LARGELY BECAUSE WE'VE HAD TEN YEARS OF HEALTH CARE COST INFLATION SINCE THE ACA ROLLED OUT.

I WON'T GO THROUGH ALL THESE, BUT FOR REFERENCE, THESE ARE THE COSTS ACROSS THE MODEL.

SO THIS IS THE CMS COUNTIES AND ACROSS THE UPTAKE MODELING THE ENROLLMENT NUMBERS AND THE PROJECTED COSTS.

AND THEN ARTICLE 13 COUNTIES SIMILAR AND THEN PUBLIC HOSPITAL SYSTEM COSTS.

IN TERMS OF PUBLIC HOSPITALS. SO AS I MENTIONED, THERE'S A POTENTIAL COST UP TO $3.4 BILLION OVER YEARS BECAUSE OF THE CHANGES IN FINANCING TOOLS. NOT EXCLUSIVE TO PUBLIC HOSPITALS, BUT RURAL HOSPITALS IN PARTICULAR HAVE BEEN AT SIGNIFICANT FINANCIAL RISK FOR MANY YEARS BECAUSE OF WORKFORCE CHALLENGES DIFFICULTY OF LACK OF ECONOMIES OF SCALE DIFFICULTIES NEGOTIATING RATES WITH HEALTH PLANS, WHEN HEALTH PLANS HAVE A LOT MORE BARGAINING POWER THAN SMALL, PARTICULARLY SMALL RURAL HOSPITALS. THE STATE HAS HELPED TRIED TO HELP WITH SOMETHING CALLED THE DISTRESSED HOSPITAL LOAN PROGRAM, BUT THAT WAS ONE TIME FUNDING AND IT IS A LOAN PROGRAM.

THERE IS THE FEDERAL RURAL HEALTH TRANSFORMATION FUND THAT WAS A PART OF HR 1, BUT THOSE FUNDS ARE LARGELY FOR SYSTEM TRANSFORMATION IMPROVEMENT.

THEY'RE NOT ESSENTIALLY FOR JUST PROVIDING ONGOING FUNDS TO KEEP THE DOORS OPEN.

SO WE ANTICIPATE CONTINUED FISCAL PRESSURES TO RURAL HOSPITALS BECAUSE OF ALL THE UNDERLYING FACTORS, AND THEN THE POTENTIAL OF LOSING A SIGNIFICANT NUMBER OF MEDI-CAL PATIENTS, WHICH WILL TURN SOME PAYING PATIENTS INTO FOLKS SEEKING CARE IN EMERGENCY DEPARTMENTS.

AND THAT OFTENTIMES RESULTS IN UNCOMPENSATED CARE TO THE RURAL HOSPITALS.

IN TERMS OF COUNTY ELIGIBILITY WORKFORCE, SO AS I MENTIONED, THERE'S NEW WORKLOAD TO IMPLEMENT ALL THE ELIGIBILITY CHANGES IN MEDI-CAL AND CALFRESH,

[00:30:04]

SO HERE ARE THE ANTICIPATED COSTS OF $484 MILLION IN THE 26-27 BUDGET YEAR, RISING TO 574 MILLION IN BUDGET YEAR PLUS ONE.

SO CSAC HAS BEEN WORKING WITH OUR AFFILIATED PARTNERS AND YOU SEE ALL THE PARTNERS HERE WORKING ON WHAT THE ANTICIPATED IMPACTS ARE, WHAT THE POTENTIAL COSTS ARE. WE'VE BEEN DOING A LOT OF EDUCATING IN SACRAMENTO AND THEN WORKING ON WORKING TOWARDS BUDGET NEGOTIATIONS.

SO AS WE HAVE BEEN DOING THIS EDUCATING, AS I MENTIONED, MANY PEOPLE ARE NOT AT ALL FAMILIAR WITH INDIGENT CARE AND SOME OF THESE OTHER THINGS.

AND SO THAT HAS BEEN A LOT OF JUST BASELINE EDUCATION OF WHAT IS GOING TO HAPPEN AND WHAT THE COUNTY'S ROLE IS.

AS WE HAVE BEEN GOING THROUGH THIS WORK, WE HAVE REALLY TRIED TO EMPHASIZE WITH STATE PARTNERS THAT H.R.

1 IS A MAJOR STRUCTURAL PART OF THE STATE BUDGET.

MEDI-CAL IS THE SECOND BIGGEST PROGRAM AT THE STATE LEVEL, SECOND ONLY TO K THROUGH 14 EDUCATION.

WHEN YOU FACTOR IN THE FEDERAL DOLLARS, IT'S THE LARGEST STATE PROGRAM.

HR 1 MAKES MAJOR CHANGES TO MEDI-CAL. AND SO THIS IS A SIGNIFICANT STRUCTURAL PART OF THE BUDGET THEY'LL BE DEALING WITH.

AND WHETHER THOSE FOLKS STAY ENROLLED IN MEDI-CAL OR COME TO COUNTY INDIGENT CARE PROGRAMS, THE STATE HAS A RESPONSIBILITY TO ENSURE THAT COUNTIES HAVE THE RESOURCES TO PAY FOR IT.

WE WANT TO APPROACH THIS AS A MULTI-YEAR EFFORT, BECAUSE MANY OF THESE DEFUNCT INDIGENT CARE PROGRAMS WILL HAVE TO BE REBUILT, AND THAT WILL TAKE TIME. AND WE'VE BEEN CONSISTENTLY MESSAGING THAT THE COUNTIES ARE PARTNERS HERE, BUT WE ARE DEPENDENT UPON THE STATE FUNDING THAT HAS BEEN MADE AVAILABLE TO BE ABLE TO CARE FOR THESE FOLKS.

SO AS I SAID, WE'VE DONE A LOT OF EDUCATING. WE DEVELOPED THOSE STATEWIDE COST ESTIMATES, AND NOW WE'RE MOVING TOWARDS THE PHASE WHERE WE'LL BE NEGOTIATING WITH THE STATE FOR THE BUDGET. AND SO WE HAVE BEEN WORKING WITH THE AFFILIATES TO TURN THOSE COST ESTIMATES INTO A BUDGET REQUEST.

WE'RE NOT THERE YET, BUT THE IDEA IS TO HAVE A COMPREHENSIVE COUNTY FAMILY BUDGET REQUEST AND WHAT IT WILL TAKE TO REALISTICALLY TO IMPLEMENT HR 1.

STARTING IN THE BUDGET YEAR AND THEN GOING FORWARD. AND SO WE'RE CLOSE TO THAT. AND THEN WE'LL BE WORKING WITH THE ADMINISTRATION AND THE LEGISLATURE TO LAND A BUDGET THAT PROVIDES FUNDING TO THE COUNTIES TO MEET THESE OBLIGATIONS.

SO THANK YOU VERY MUCH FOR YOUR TIME. OF COURSE, I'M HAPPY TO ANSWER ANY QUESTIONS, WHATEVER IS HELPFUL TO THE BOARD. NO, THANK YOU VERY MUCH. THAT'S A LOT OF INFORMATION TO TAKE IN.

I KNOW AS A BOARD OF SUPERVISORS, WE ALWAYS TALK ABOUT THE BUDGET, IT'S A PIE.

AND NOT ONLY IS IT GOING TO TAKE A BIG SLICE OF THE PIE THAT WE GET FROM THE STATE, IT'S ALSO GOING TO TAKE A BIG SLICE OF THE PIE THAT WE HAVE DISCRETION OVER. AND I WAS HOPING MAYBE I COULD HAVE MARK, COULD YOU GIVE US A BIG 30,000 FOOT VIEW OF WHAT'S HAPPENING AT THE COUNTIES? AND MAYBE I COULD HAVE MARK TOUCH ON JUST SOME IMPACTS DIRECTLY TO MERCED COUNTY.

I AM VERY HAPPY THAT NINE YEARS AGO WE STARTED SOME CONVERSATIONS WITH CMSP AND ABLE TO REOPEN UP THOSE DISCUSSIONS BECAUSE THEY WILL TAKE OFF A LOT OF THAT IMPACT. I'M GLAD MERCED COUNTY QUALIFIES TO BE WITHIN THOSE COUNTIES, BUT MARK, IF YOU COULD JUST SHARE SOME OF THOSE, PLEASE. THANK YOU SIR.

YEAH, JUST VERY, VERY QUICKLY. BRENDON, THANK YOU.

OBVIOUSLY AND HOPEFULLY EVERYONE CAN HEAR THE MAGNITUDE OF WHAT THIS BOARD MAY BE FACING.

AND OBVIOUSLY WE'VE GOT A MID-YEAR BUDGET PRESENTATION HERE SHORTLY THEREAFTER, WHICH THIS IS CERTAINLY GOING TO TO FACTOR INTO THAT.

BUT LET'S PUT THIS INTO PERSPECTIVE. 59% OF THIS COMMUNITY IS ON SOME FORM OF SOCIAL ASSISTANCE.

50% OF THIS COMMUNITY IS 50% OF THIS COMMUNITY IS IS ENROLLED IN MEDI-CAL.

THESE ARE SIGNIFICANT COST DRIVERS. IF YOU TAKE A LOOK AT SOME OF OUR ESTIMATED COSTS TO THE CHAIRMAN'S QUESTION, THIS COULD BE UPWARDS OF A $10 MILLION IMPACT TO THIS COUNTY, WHICH MAY REQUIRE THIS BOARD TO SHIFT SOME OF ITS FUNDING PRIORITIES PROSPECTIVELY.

SO FOR US, WHEN YOU'RE TALKING ABOUT AGAIN, 59%.

SIX OUT OF TEN PEOPLE IN THIS COMMUNITY ARE FACING PRETTY TOUGH TIMES.

SO WE'VE GOT TO BE THANKFUL, THINKING AND THOUGHTFUL RATHER AS IT RELATES TO THE ULTIMATE KIND OF BIG PICTURE.

SO AS TO ALIGN PROGRAMS AND SERVICES WITH STATE MANDATES.

AND FOR THAT WE SIMPLY SAY THANK YOU TO TO CSAC FOR FIGHTING THE FIGHT.

SO IF YOU THINK ABOUT YOU AGAIN, 146,131 PEOPLE, 50% OF THIS COMMUNITY IS ENROLLED IN MEDI-CAL.

WE'VE GOT YOU KNOW, OBVIOUSLY YOU TAKE A LOOK AT, YOU KNOW, LOCALIZED IMPACTS.

WE'VE GOT EVERYTHING FROM THE POTENTIAL REDUCTION OF SNAP EDUCATION.

THAT'S A $544,000 LOCALIZED IMPACT THAT WE WOULD NOT REALIZE.

THESE ARE REAL IMPACTS THAT ARE GOING TO IMPACT PEOPLE THROUGHOUT THIS COUNTY.

AND WE CLEARLY THROUGHOUT THE SAN JOAQUIN VALLEY HAVE A MORE HIGHLY DISPROPORTIONATE SHARE OF THOSE ON THE LOWER END OF THE SOCIOECONOMIC LADDER.

SO, MR. CHAIRMAN, WHAT WE'RE GOING TO BE DOING HERE IN THE WEEKS AHEAD.

BOTH I DON'T SEE HER, BUT THE ASSISTANT CEO, MARCI BARRERA, IS WORKING WITH EACH OF OUR DEPARTMENTS.

I REALLY WANT TO SAY THANK YOU TO DIRECTOR VANG, DIRECTOR CHECKLEY, DIRECTOR SULLIVAN, WHO HAVE BEEN WORKING HARD TO STAY AHEAD OF THIS

[00:35:07]

AS YOU KNOW, BRENDAN TALKED ABOUT, THERE ARE SEVERAL DIFFERENT DEADLINES THAT WE ARE THAT WE ARE FACING.

YOU KNOW, JUST ABOUT A WEEK AGO, WE HAD A GOOD FORTUNE OF MEETING WITH SOME OF OUR COMMUNITY PARTNERS, SOME OF OUR FQHCS AND FQHC, LOOK-ALIKES AND SCHOOLS AND, AND WHATNOT.

AND I REALLY APPRECIATE THE FACT THAT WE HAVE SOME OF THEM IN THE AUDIENCE TODAY, AGAIN, WITH ONE GOAL.

WHAT CAN WE DO TO PREVENT A, A, A NUMBER OF PEOPLE FROM FALLING BETWEEN THE CRACKS ALSO WANT TO ACKNOWLEDGE AND SUPERVISOR MCDANIEL JUST MENTIONED THIS A FEW BOARD MEETINGS AGO. THIS BOARD TOOK AN INITIAL STEP WITH REGARD TO THE COUNTY'S POTENTIAL ENTRANCE INTO CMSP, WHICH COULD VERY WELL HELP ALLEVIATE SOME OF THESE PRESSURES.

BUT LET'S BE VERY MINDFUL THOSE ARE GOING TO COME WITH SOME COSTS ON THE FRONT END, PROBABLY AT LEAST A COUPLE OF YEARS WHERE WE WOULD HAVE TO FRONT THAT PRIOR TO ACTUALLY FULLY BEING ACCEPTED INTO THAT POOL. AND THEN LASTLY, AND AS WE THINK ABOUT KIND OF THE OVERALL BUDGET AND BIG PICTURE, LET'S ALSO BE MINDFUL THAT WHILE WE THERE IS POTENTIAL AND AS BRENDAN HAD MENTIONED, OBVIOUSLY RULES ARE BEING PROMULGATED WITH REGARD TO WORK REQUIREMENTS, EXEMPTIONS AND A NEXUS WITH UNEMPLOYMENT RATES.

LET'S BE VERY MINDFUL THAT MERCED COUNTY'S UNEMPLOYMENT RATE HAS AT TIMES DIPPED BELOW THAT 8%, AND AT TIMES IT'S BEEN ABOVE THAT 8%. AND SO WE ARE NOT GOING TO BE BANKING ON THE FACT THAT THAT'S A GIVEN.

WE NEED TO BE THOUGHTFUL, METHODICAL, STRATEGIC PLAN WORST CASE SCENARIO, AGAIN, UNDERSTANDING THAT THESE TYPES OF DECISIONS, AGAIN, THAT COME OUT OF BOTH WASHINGTON, D.C.

AND SACRAMENTO DIRECTLY IMPACT YOUR ABILITY MEMBERS OF THE BOARD TO DELIVER THE SERVICES THAT YOU FEEL OBVIOUSLY ARE IMPORTANT TO HELPING PEOPLE IN NEED THROUGHOUT THIS COMMUNITY. THANK YOU, MARK. YEAH, I JUST WANTED TO GIVE THE FOLKS JUST TO UNDERSTAND WHAT'S COMING BEFORE THE BOARD HERE IN THE NEXT THREE YEARS WE'RE GOING TO BE MAKING GENERATIONAL DECISIONS EACH YEAR ON THE BUDGET MOVING FORWARD WITH THIS IMPACT.

I DO, I WOULD LIKE TO THANK SUPERVISOR PEDROZO FOR TAKING THE LEAD ON THIS, SEEING THIS COMING FROM NACO AND UNDERSTANDING IT AND ACTUALLY EDUCATING US ALL ON IT.

WE'VE BEEN TALKING ABOUT IT FOR MONTHS NOW. THE CHAIR DOES RECOGNIZE SUPERVISOR SILVEIRA.

THANK YOU, MR. CHAIR. BRENDAN, THANK YOU FOR ALL YOUR GOOD WORK THAT YOU'RE DOING ON THIS.

I REALLY WANT TO THANK CSAC IN THEIR APPROACH TO THIS.

JUST TO HELP FOLKS UNDERSTAND, AND BRENDAN MENTIONED IT IN HIS COMMENTS.

BEFORE WE HAD THE ACA, THE AFFORDABLE CARE ACT, YOU HAD INDIGENT CARE THAT WAS THE COUNTY'S RESPONSIBILITY.

THERE WAS FUNDING THAT CAME ALONG WITH THAT. WHEN THE ACA CAME ALONG THERE WAS NO LONGER A NEED FOR THAT FUNDING AND THE STATE REDIRECTED IT.

THE CHALLENGE IS, IS THAT ALMOST NONE OF THE CURRENT LEGISLATURE THAT'S THERE EVEN REMEMBERS A TIME BEFORE THE AFFORDABLE CARE ACT.

THEY DON'T REMEMBER INDIGENT CARE. SO IN A NORMAL BUDGET TYPE OF SITUATION, EXCUSE ME, WHAT WE WOULD DO IS THE CALIFORNIA STATE ASSOCIATION OF COUNTIES AND ALL OF OUR AFFILIATE GROUPS, THERE'D BE SOMETHING THAT YOU WOULD WANT TO GET ADDRESSED IN THE BUDGET, AND YOU WOULD GO AND YOU'D TALK TO LEGISLATORS AND YOU WOULD TRY TO MAKE AN ASK TO TRY TO FIX THAT ONE PROBLEM.

THIS IS COMPLETELY DIFFERENT BECAUSE THIS IS A MULTI-PRONGED PROBLEM THAT REALLY, IF YOU LOOK AT IT.

AND AGAIN, BRENDAN, I'M STEALING SOME OF YOUR TALKING POINTS, BUT OTHER THAN THE FUNDING THAT FROM PROP 98 THAT GOES TO SCHOOLS, THIS IS THE BIGGEST THING THAT THE STATE DOES.

AND IT GOT TAKEN AWAY WITH HR, ONE THINGS THAT WE RELIED ON ARE NO LONGER THERE.

AND WITHOUT THE STATE'S HELP, THAT IS DIRECTLY GOING TO FALL BACK ON COUNTIES.

AND YOU PICK THE COUNTY AND THE NUMBERS EITHER GET SMALLER OR BIGGER BASED UPON THEIR POPULATION.

IT'S A LITTLE BIT DIFFERENT EVERYWHERE. AND SO THE APPROACH THAT CSAC HAS TAKEN IS REALLY GOING ON AN EDUCATION TOUR, EDUCATING LEGISLATORS WHO DON'T REMEMBER WHAT IT WAS LIKE EVEN BEFORE THAT.

YOU HEARD HIM SAY THERE'S PROGRAMS THAT ARE DEFUNCT BECAUSE THEY HAD NO NEED FOR THEM THAT MAYBE REMAIN ON PAPER, BUT SIT DORMANT, THAT ALL DOESN'T JUST GET SPUN UP OVERNIGHT.

SO IT'S A HUGE IT'S GOING TO BE A HUGE ASK. AND I WANT TO THANK ALL OF OUR AFFILIATE PARTNERS AND A LOT OF OUR DEPARTMENT HEADS THAT ARE IN THE ROOM ARE PART OF THESE, THIS COUNTY FAMILY OF PARTNERS IN BEARING WITH US AS WE'RE EMBARKING ON THIS DIFFERENT WAY OF DOING BUSINESS AND REALLY TRYING TO GO TO THE STATE AND UNDERSTAND WHAT EVERY PIECE OF COUNTY GOVERNMENT THAT THIS IS GOING TO AFFECT AND WHAT IS GOING TO BE THAT DOLLAR AMOUNT THAT WE'RE GOING TO ASK FOR.

AND LET'S BE REAL ABOUT IT. WE KNOW THAT WE'RE GOING TO YOU SAW THE RANGE UP THERE FROM FIVE AND A HALF TO $9 BILLION.

[00:40:05]

AND WE NEED FOLKS TO UNDERSTAND THIS ISN'T A ONE TIME YOU GIVE US MONEY, WE'RE GOOD.

NO, THIS IS A CONTINUAL STRUCTURAL THING THAT FOR THE SEEABLE FUTURE THAT WE'RE GOING TO HAVE TO KEEP ADDRESSING.

AND NOW TO TIE IT BACK TO COUNTY, LISTEN, $1.15 BILLION BUDGET OF THAT $200 MILLION DOLLARS MYSELF AND MY FOUR COLLEAGUES ACTUALLY HAVE DISCRETION OVER HOW WE SPEND. WE PUT A BIG PORTION OF THAT INTO PUBLIC SAFETY.

DARREN MENTIONED THE PIE IS ONLY SO BIG. IT REALLY STARTS TO BECOME NOW THIS IS WHAT I WANT FOLKS TO UNDERSTAND THE IMPACTS OF THIS BECOMES NOT JUST A HEALTHCARE ISSUE, IT BECOMES A PUBLIC SAFETY ISSUE, RIGHT? BECAUSE THE DOLLARS HAVE TO COME FROM SOMEWHERE.

AND YES, I KNOW THAT IN EXTREME CIRCUMSTANCES THAT WE HAVE RESERVES, BUT WE HAVE POLICY AROUND HOW THOSE RESERVES CAN BE SPENT.

THOSE ARE ONE TIME MONIES. YOU CAN RUN THROUGH THOSE REALLY FAST AND WE COULD BE IN REAL BAD SHAPE.

AND SO I GUESS THE PART THAT'S MOST FRUSTRATING FOR ME IS THE UNKNOWING.

OH, WE'RE GOING TO COME OUT WITH SOME GUIDANCE THAT WE'RE GOING TO GIVE YOU IN JUNE OF 2026 FOR AN IMPLEMENTATION OF JANUARY OF 2027.

YOU GUYS HAVE ALL BEEN AROUND GOVERNMENT. THE ONE THING WE DON'T DO IS FAST. IT TAKES US TIME TO DIGEST AND HAVE MEETINGS ABOUT MEETINGS TO UNDERSTAND.

AND SO WE'RE FLYING INTO THIS BLIND. AND THAT'S WHY YOU SEE A NUMBER UP THERE BETWEEN 5.5 BILLION AND 9 BILLION, BECAUSE IT IS REALLY THE SMART PEOPLE IN THE ROOMS BEST ESTIMATE OF WHAT IT'S GOING TO BE.

WE TRULY DON'T KNOW WHAT THE IMPACTS ARE GOING TO BE. IT IS SOMETHING THAT I KNOW.

I JUST WAS AT A MEETING DOWN SOUTH WITH FELLOW SUPERVISORS FROM UP AND DOWN THE STATE.

THIS IS THE NUMBER ONE TOPIC THAT EVERYBODY IS TALKING ABOUT BECAUSE IT'S THE UNKNOWN.

AND AS WE ARE GOING INTO BUDGET SEASON AND TRYING TO PREPARE FOR A 26-27 FISCAL YEAR BUDGET, HAVING ALL THESE UNKNOWNS, IT'S REALLY IT'S GOT ME A LITTLE BIT CONCERNED.

AND SO AGAIN, BRENDAN, THANK YOU FOR COMING DOWN AND KIND OF HIGHLIGHTING THIS BECAUSE WE WANT TO BE ABLE TO SHARE THIS WITH NOT ONLY MY COLLEAGUES, BUT ALL THE FOLKS THAT ARE IN THE ROOM, ALL THE FOLKS THAT ARE WATCHING TO UNDERSTAND, LIKE, THIS IS A REAL STRUGGLE THAT WE'RE DEALING WITH RIGHT NOW. AND I DON'T SEE ANY LIGHT AT THE END OF THE TUNNEL OF THIS GETTING ANY BETTER ANY FASTER.

SO THANK YOU. YEAH. THANK YOU SUPERVISOR AND LET'S UNDERSTAND HOW THE STATE DOES THEIR BUDGETING.

SO EVEN THOUGH ACA PROVIDED A SAVINGS IN A DIFFERENT WAY, THE STATE DIDN'T SAVE THE MONEY SOMEWHERE.

THEY REDIRECTED IT AND WAS SPENDING THAT MONEY ELSEWHERE.

SO THAT'S WHY IT'S HARDER TO GO OUT AND RETRIEVE IT.

IS THERE ANY OTHER COMMENTS HERE AT THE DAIS? THE CHAIR RECOGNIZES SUPERVISOR PEDROZO.

THANK YOU, MR. CHAIR. THANK YOU FOR THE PRESENTATION.

YEAH. AND THE REASON THIS HAS BEEN SOMETHING THAT'S BROUGHT UP QUITE A BIT IN THAT THE NATIONAL ASSOCIATION OF COUNTIES, AS IT RELATES TO THE RURAL, ESPECIALLY THE RURAL HOSPITALS AND THE RURAL DESIGNATED HOSPITALS AND THE FACT THAT THEY'RE CLOSING ACROSS THE COUNTRY. AND I WANT TO I ECHO WHAT MY COLLEAGUE SUPERVISOR SILVEIRA AND SUPERVISOR OR CHAIRMAN MCDANIEL SAID, YOU KNOW, THE UNKNOWNS ARE THE REALLY FRUSTRATING THING ABOUT THIS.

AND SO IT SEEMS LIKE WITH THE GOVERNOR, THE WAY HE BUDGETS IS VERY INTERESTING, RIGHT? AND SO IT'S GOING TO WE DON'T KNOW HOW MUCH MONEY IS ACTUALLY THERE AND WHERE IT'S GOING TO COME FROM AND HOW WE'RE GOING TO DO IT.

AND SO THE FACT THAT WE DON'T KNOW. IT'S VERY FRUSTRATING.

AND I HAVE A FEELING THAT WE'RE GOING TO GET SLAPPED WITH SOMETHING AT THE MAY REVISE.

AND THEN WE'RE GOING TO HAVE TO FIGURE ALL THIS OUT BECAUSE THEY DON'T REALLY KNOW WHAT THEY'RE DOING EITHER. AND SO THEN IT'S GOING TO BE PUT ON US TO FIGURE IT OUT.

THE REALITY OF THE SITUATION IS THAT THE PIE IS SMALLER.

WE HAVE WE ARE MANDATED TO PROVIDE SOME TYPE OF HEALTH CARE TO THE CITIZENS OF MERCED COUNTY.

AND I UNDERSTAND THAT AND I BELIEVE THAT WE SHOULD BE DOING THAT, BUT AT THE EXPENSE OF NOT JUST US BECAUSE IT'S NOT, IT'S THE CONSTITUTION, BUT IT'S NOT SOMETHING THAT WE SHOULD, YOU KNOW, IF WE'RE GOING TO BE MANDATED TO DO IT.

CALIFORNIA IS VERY GOOD AT MANDATING COUNTIES TO DO THINGS WITHOUT FUNDING TO SUPPORT THEM.

AND SO IT'S SOMETHING THAT WE HAVE TO REALLY ADDRESS.

AND THE PEOPLE THAT WHEN WE'RE MAKING THESE BUDGET DECISIONS HAVE TO UNDERSTAND THAT TIMES ARE GOING TO GET TOUGH BEFORE THEY GET BETTER.

AND SO AS WE START TO GO THROUGH THIS BUDGET PROCESS, IT'S BE MINDFUL OF THAT.

RIGHT ON. THANK YOU. LOOK AROUND. SO AT THIS TIME I'LL GO AHEAD.

THANK YOU. WE'LL GO AHEAD AND OPEN IT UP FOR PUBLIC COMMENT REGARDING THE PRESENTATION.

THANK YOU FOR YOUR TIME SUPERVISORS. THANK YOU. OKAY.

PUBLIC COMMENT PERIOD FOR THE PRESENTATION IS NOW CLOSED.

WE'LL GO AHEAD AND MOVE ON TO PRESENTATION NUMBER TWO.

AND AT THIS TIME, WE'LL BE HAVING A PRESENTATION ON MERCED COUNTY FISCAL YEAR 2025 2026 MID-YEAR BUDGET REPORT BY THE COUNTY EXECUTIVE OFFICE.

I WILL NOW TURN THE MIC OVER TO OUR COUNTY EXECUTIVE OFFICER, MARK HENDRICKSON.

AGAIN GOOD MORNING, MR. CHAIRMAN, MEMBERS OF THE BOARD, AGAIN, AS THE LAST ITEM, IT CLEARLY BLEEDS IN TO TO THIS ONE.

[00:45:04]

THIS PRESENTATION TODAY IS GOING TO PROVIDE AN UPDATE ON OUR CURRENT FISCAL POSITION AND WILL HIGHLIGHT FOR YOU EMERGING TRENDS WHILE ALSO FOCUSING ON LONG TERM STABILITY.

SO AS WE MOVE FORWARD THROUGH THIS FISCAL YEAR, YOUR TEAM JUST TO REST ASSURE THIS BOARD AND THE COMMUNITY HAS A STRONG FOCUS ON BOTH FISCAL RESPONSIBILITY AND SUSTAINABILITY. SO WHILE THIS COUNTY CONTINUES TO MAKE IMPORTANT INVESTMENTS IN SERVICES TO OUR RESIDENTS, WE ALSO MUST DO SO WITH CARE AND A CLEAR UNDERSTANDING OF OUR FINANCIAL LANDSCAPE.

AS YOU JUST HEARD, THERE ARE MANY UNCERTAINTIES ASSOCIATED WITH HR 1, WHICH ARE GOING TO REQUIRE THOUGHTFUL PLANNING, WHICH MAY AFFECT FUNDING STREAMS THAT COUNTIES RELY UPON TO PROVIDE AS SUPERVISOR SILVEIRA AND OTHER ESSENTIAL SERVICES.

SO WHILE THE FULL IMPACTS ARE STILL BEING EVALUATED, IT IS PRUDENT FOR US TO BE MINDFUL THAT THESE CHANGES AT THE FEDERAL AND STATE LEVEL COULD INFLUENCE YOUR BUDGET AND SERVICE DELIVERY IN THE FUTURE.

NOW, GIVEN THIS ENVIRONMENT, THIS COULD DRIVE A SHIFT IN SPENDING PRIORITIES AS THESE CONDITIONS EVOLVE.

NOW, OUR RESPONSIBILITY AS YOUR STAFF IS TO ENSURE THAT THE COUNTY REMAINS FISCALLY STABLE, WHILE AT THE SAME TIME DELIVERING CRITICAL SERVICES TO OUR COMMUNITY.

THAT ALSO MEANS THAT WE NEED TO BE FOCUSED ON EVALUATING NEW COMMITMENTS RESPECTIVELY.

SO AS A PART OF NEXT YEAR'S BUDGET DEVELOPMENT PROCESS ALREADY UNDERWAY, I WOULD LIKE TO SHARE THAT WE WILL BE INCREDIBLY FOCUSED ON AND WILL SCRUTINIZE POSITION REQUESTS AND PROGRAM EXPANSIONS. EACH REQUEST MUST BE CAREFULLY EVALUATED TO DETERMINE WHETHER IT SUPPORTS MANDATED RESPONSIBILITIES OR DISCRETIONARY PROGRAMS. SO IT'S IMPORTANT THAT WE CLEARLY DISTINGUISH BETWEEN THESE TWO, AGAIN, MANDATED AND NON-MANDATED PROGRAMS, SO THAT DECISIONS THAT THIS BOARD WILL BE ASKED TO MAKE CAN BE MADE WHERE LIMITED RESOURCES SHOULD BE DIRECTED.

THIS WILL HELP ENSURE THAT WE ARE PROTECTING WHAT ARE OUR CORE RESPONSIBILITIES AS A COUNTY.

SO AT THIS POINT, I'D LIKE TO ACKNOWLEDGE THE WORK OF EACH OF OUR DEPARTMENTS WHO HAVE HELPED FEED INTO THIS PROCESS.

I'D LIKE TO THANK OUR BUDGET TEAM FOR THE WORK THAT THEY HAVE DONE, OBVIOUSLY, IN PREPARATION FOR THIS PRESENTATION TODAY, AND ASK DEPUTY CEO VANESSA ANDERSON TO WALK YOU THROUGH THE SLIDES OVER THE NEXT SEVERAL MINUTES.

VANESSA. GOOD MORNING, MR. CHAIRMAN, MEMBERS OF THE BOARD.

I'M VANESSA ANDERSON AND I WILL BE GOING THROUGH OUR MID-YEAR BUDGET REPORT FOR FISCAL YEAR 25-26.

STARTING OFF, JUST AN OVERVIEW OF THE AREAS THAT WE'RE GOING TO TOUCH ON THIS MORNING.

WE HAVE OUR PROJECTED EXPENDITURES COMPARED TO REVENUES FOR OUR FISCAL YEAR 25-26 CURRENT BUDGET PACKAGE.

WE HAVE OUR GENERAL PURPOSE REVENUES THAT WE WILL DRILL INTO AND UNDERSTAND HOW THEY'RE PERFORMING THIS FISCAL YEAR.

AND THEN WE WILL IDENTIFY HOW ALL OF THAT'S IMPACTING OUR NET COUNTY COST.

DRIVING INTO OUR FISCAL YEAR 26-27 FISCAL OUTLOOK, WE WILL DISCUSS SOME STATE BUDGET IMPACTS THAT WE ARE AWARE OF, SOME THAT WE ARE NOT AWARE OF. AND THEN FISCAL YEAR 26-27 PRELIMINARY BUDGET OUTLOOK, ITEMS THAT WE KNOW OF THAT WE ARE CURRENTLY WORKING TO INCLUDE IN THE BUDGET PACKAGE FOR THE BOARD'S CONSIDERATION IN A FEW SHORT MONTHS, AND THEN ALSO BUDGET DEVELOPMENT STRATEGIES THAT WE'VE INCORPORATED TO HELP ENSURE THAT WE HAVE A SUSTAINABLE BUDGET PACKAGE. THIS MID-YEAR PROCESS IS INTENDED TO TAKE SIX YEARS, SIX MONTHS WORTH OF ACTUALS THAT DEPARTMENTS HAVE REALIZED FROM JULY THROUGH DECEMBER, AND THEY TAKE THAT INFORMATION AND PROJECT OUT FOR THE REMAINING SIX MONTHS OF THAT FISCAL YEAR.

SO WHAT WE LOOK AT AS WE REVIEW THESE NUMBERS IS A COMBINATION OF ACTUALS AND ESTIMATES TO GIVE US 12 MONTHS WORTH OF ACTUAL, SO WE CAN BETTER UNDERSTAND HOW WE MAY END THIS FISCAL YEAR.

MID-YEAR ANALYSIS IS VERY IMPORTANT BECAUSE IT HELPS US MONITOR AND EVALUATE THE PERFORMANCE OF OUR BUDGET PACKAGE AND REALLY UNDERSTAND THE FISCAL HEALTH OF THE ORGANIZATION. IT PROVIDES US AN OPPORTUNITY FOR EARLY IDENTIFICATION OF ANY VARIANCES SO WE CAN TAKE ACTION EARLY.

AND WE DON'T IDENTIFY THINGS AT THE LAST MINUTE AND ARE STUCK IN A BAD SITUATION.

IT ALSO ALLOWS US FOR MORE PRECISE PLANNING FOR THE BOARD'S UPCOMING BUDGET PACKAGE.

AGAIN, TAKING THOSE ESTIMATES AND UNDERSTANDING WHAT IMPACTS THAT MAY HAVE ON THE RESOURCES THAT WE HAVE AVAILABLE IN THE UPCOMING BUDGET PACKAGE THAT THE BOARD WILL SEE.

MOVING INTO THE BUDGET OVERVIEW, WE HAVE OUR 25-26 ADJUSTED COUNTY BUDGET.

WE'RE LOOKING AT THE ADJUSTED AMOUNT. YOU CAN SEE THE TOTAL APPROPRIATIONS FOR ALL FUNDS NEARLY AMOUNT TO $1.3 BILLION.

THIS INCLUDES NOT ONLY THE SNAPSHOT THAT THE BOARD HAD APPROVED BACK IN SEPTEMBER FOR OUR FINAL BUDGET PACKAGE, BUT IT INCLUDES CERTAIN ADJUSTMENTS THAT YOU'LL SEE THROUGHOUT THE FISCAL YEAR AFTER FINAL BUDGET UP TO CURRENT,

[00:50:05]

AND WHAT YOU ALSO SEE OUR OLD ENCUMBRANCES. THOSE ARE PURCHASE ORDERS THAT WE'VE ESTABLISHED IN A PRIOR YEAR.

IF A DEPARTMENT PERHAPS HAS A CONTRACT TO PURCHASE SOMETHING IN THE PIPELINE THAT HASN'T BEEN COMPLETED, THAT GIVES US THE OPPORTUNITY TO CARRY THAT PURCHASE FORWARD INTO THE FUTURE FISCAL YEAR.

AND IT'S SUPPORTED BY FUNDING. AND SO THAT ADJUSTED AMOUNT REPRESENTS ALL OF THOSE COMPONENTS IN THE SPENDING PLAN.

AND YOU CAN SEE OUR GENERAL FUND AMOUNTS TO $844 MILLION.

THAT'S THE FUND THAT IS TEASED OUT. ALL FUNDS INCLUDES CERTAIN DISTINCT AND SEPARATE FUNDS SUCH AS ROADS, CASTLE FIRE, TO NAME A FEW. OUR GENERAL FUND IS ALSO INCLUDED IN ALL OF THE ALL FUNDS BUCKET.

HOWEVER, IT IS SHOWN BY ITSELF THERE ON THE RIGHT SIDE BECAUSE IT IS THE LARGEST OPERATING COMPONENT THAT WE HAVE, ONE OF THE LARGEST OPERATING COMPONENTS WE HAVE IN THE SPENDING PLAN. SOURCES OF FUNDING THAT YOU SEE IN THAT GRAY SPACE WE HAVE STARTING AT THE TOP ARE DEPARTMENTAL REVENUES.

I WANT TO STATE HERE THAT THIS IS NOT DISCRETIONARY FUNDING.

IT REALLY SUPPORTS THE LARGEST COMPONENT OF THE SPENDING PLAN, $961 MILLION FOR ALL FUNDS AND 610 MILLION FOR OUR GENERAL FUND.

THESE ARE DIRECT RESOURCES PROVIDED FROM STATE OR FEDERAL ORGANIZATIONS, SOME EXTERNAL SOURCE OF FUNDING THAT HAS VERY SPECIFIC SPENDING REQUIREMENTS.

YOU CAN'T TAKE THIS ONE SOURCE OF FUNDING AND PROGRAM IT FOR ANOTHER PURPOSE.

IT HAS TO COMPLY WITH THAT SPECIFIC SCOPE OF WORK THAT IT COMES FROM THE FUNDING AGENCY.

YOU CAN SEE OUR GENERAL PURPOSE REVENUES COMING IN AT $142.4 MILLION.

THIS WAS PROGRAMED AT FINAL BUDGET. THESE ARE DISCRETIONARY.

THESE ARE THE FUNDS THAT THE BOARD HAS THE CAPACITY TO MAKE COMMUNITY AND BOARD PRIORITY DECISIONS ON.

BUT IT ALSO IS WHAT WE WILL UTILIZE FOR MANDATED COSTS, SUCH AS THE CONVERSATION THAT WE JUST COMPLETED, INDIGENT HEALTH CARE. IF IN FACT THAT COMES DOWN TO THE COUNTY WITH NO OFFSETTING RELIEF FROM THE STATE THIS IS THE BUCKET THAT WE WILL HAVE TO DIP INTO AND UTILIZE THESE FUNDS TO HELP COVER THOSE UNFUNDED MANDATES. THIS AMOUNTS TO ABOUT 11% OF OUR TOTAL SPENDING PLAN.

SO NOT THE LARGEST COMPONENT OF FUNDING SUPPORT.

AND YOU CAN UNDERSTAND PROBABLY THE IMPACTS THAT THAT WOULD HAVE IF IN FACT, WE HAD TO PROGRAM TO THE POINT CEO HENDRICKSON MENTIONED, ESTIMATED AT MAYBE $10 MILLION, YOU CAN UNDERSTAND THE IMPACT THAT THAT WOULD HAVE ON OUR ORGANIZATION.

MOVING INTO THE FUND BALANCE YOU CAN SEE THAT AMOUNTS TO $182 MILLION FOR ALL FUNDS $91.7 MILLION IN OUR GENERAL FUND.

ALL FUNDS THAT STAND ON THEIR OWN SUCH AS ROADS FIRE AND CASTLE THERE'S A COUPLE OTHER OUT THERE.

THEY WILL MAINTAIN THEIR OWN FUND BALANCE THAT IS SOMEWHAT OF A SAVINGS ACCOUNT, I'LL CALL IT.

AND THAT IS UTILIZED FOR EACH OF THOSE RESPECTIVE AREAS.

IT IS NOT DISCRETIONARY WHEN IT IS OVER IN THOSE FUNDS.

IT'S DEDICATED DIRECTLY TO THOSE SERVICES THAT THOSE FUNDS WILL PROVIDE.

ON THE RIGHT SIDE, YOU SEE THE $91.7 MILLION THAT DOES TEND TO BE DISCRETIONARY, BUT AGAIN, UTILIZED FOR ANY UNFUNDED MANDATE COSTS THAT MAY HAPPEN TO COME UP.

AND ANY OTHER PRIORITIES THAT THE BOARD SEES FIT FOR COMMUNITY.

WITHIN THAT WE HAVE $14.1 MILLION THAT IS COMMITTED.

YOU HEARD ME MENTION A MOMENT AGO ABOUT THE ROLLED PURCHASE ORDERS.

THOSE ARE DIRECTLY TIED TO ROLLED PURCHASE ORDERS.

SO WHILE IT IS INCLUDED IN A DISCRETIONARY BUCKET, IT REALLY ISN'T BECAUSE IT'S ALREADY ATTACHED TO A SPENDING REQUIREMENT.

AND THEN DOWN BELOW, YOU SEE $77.6 MILLION IN AVAILABLE THAT WAS PROGRAMED AT FINAL BUDGET.

AND THAT DOES HAVE THE CAPACITY TO BE PROGRAMED AS THE BOARD SEES FIT.

SO YOU CAN SEE THE TOTAL SOURCES OF FUNDING AMOUNT TO THE TOTAL SPENDING REQUIREMENTS THAT WE HAVE FOR EACH OF THOSE FUNDS.

MOVING INTO THE ESTIMATED USE OF FUNDS. THIS IS FOR ALL OF OUR FUNDS.

YOU CAN SEE IT'S SORTED BY CATEGORY. THE SPENDING CATEGORY, SALARIES AND BENEFITS DOWN TO OUR SERVICES AND SUPPLIES.

OTHER CHARGES, TRANSFERS, CAPITAL ASSETS AND OUR CONTINGENCIES.

THE $1.13 BILLION IN THAT FIRST COLUMN OF NUMBERS REPRESENTS OUR ADJUSTED BUDGET.

THAT'S SPENDING AUTHORITY THAT WE HAVE. IN THE MID-YEAR PROJECTION COLUMN, YOU SEE WE ARE ANTICIPATING, BASED ON DEPARTMENTAL INPUT, TO COME IN AT $921 MILLION DOLLARS.

THE FAR RIGHT COLUMN INDICATES HOW MUCH WE ESTIMATE TO BE OVER OR UNDER THAT BUDGETED AMOUNT.

SALARIES AND BENEFITS ARE ESTIMATED TO COME IN ALMOST $70 MILLION UNDER BUDGET.

THAT REALLY IS DRIVEN BY VACANCIES THAT WE SEE AND SERVICES AND SUPPLIES WE SEE AT $99.4 MILLION ESTIMATED TO BE UNDER

[00:55:08]

AND OUR OTHER CHARGES, WE HAVE VERY CLIENT DRIVEN COSTS HERE.

A LOT OF ASSISTANCE TO NEEDY OR HEALTH AND HUMAN SERVICES AND DIRECT PAYMENT CHARGES THAT POST TO THIS LINE ITEM $18.9 MILLION UNDER BUDGET. WE HAVE TRANSFERS IN CAPITAL ASSETS, THOSE TYPICALLY FOR THE MOST PART, WHILE NOT ALWAYS SUPPORT A LOT OF OUR CIP PROJECTS CAPITAL IMPROVEMENT PROJECTS.

AND THE TRANSFERS ARE REALLY A MECHANISM FOR US TO SHIFT MONEY FROM ONE AREA TO ANOTHER AREA SUPPORTING A LOT OF TIMES CERTAIN CAPITAL ASSETS.

WITHIN THOSE CAPITAL ASSETS WE HAVE COSTS SUCH AS OUR CAPITAL IMPROVEMENT PROJECTS.

WE HAVE MAYBE PURCHASES OF EQUIPMENTS, LARGE ROADS PROJECTS, ROADS AND BRIDGE PROJECTS LARGE SCALE PROJECTS SUCH AS THE INLAND PORT THAT WE HAVE OUT AT CASTLE. WE ALSO HAVE OUR CONTINGENCY BUDGETED AT $6.8 MILLION, OF WHICH WE DO NOT ANTICIPATE TO USE.

HOWEVER, IT IS AVAILABLE IN THE EVENT THAT THERE'S SOME UNEXPECTED OR EMERGENCY SITUATION THAT WE HAVE TO ADDRESS.

OF THE UNDER TOTAL UNDERSPENDING ANTICIPATED UNDERSPENDING OF $364 MILLION, ABOUT 80% OF THAT COMES FROM SUBVENTED DEPARTMENTS OR OTHER FUNDS. WHAT THAT MEANS IS IT'S NOT LARGELY DRIVEN BY NET COUNTY COSTS.

IT IS COMING FROM SOME OTHER FUNDING SOURCE OR A DEDICATED PROGRAM, AS YOU SAW ON THE DEPARTMENTAL REVENUES.

IT IS SOMETHING VERY SPECIFIC THAT'S COMING FROM THE STATE OR FEDERAL GOVERNMENT OR SOME OTHER EXTERNAL FUNDING SOURCE THAT IS DRIVING WHAT THOSE CHARGES ARE.

OFTENTIMES, WE HAVE A MAXIMUM CAPACITY SITUATION WHERE THERE'S A GRANT ALLOCATION OR WE ARE TRYING TO DEMONSTRATE MAXIMUM CLIENT CAPACITY.

AND SO WE WILL INCLUDE THAT OR MULTI-YEAR PROJECTS, RIGHT? SO OUR CIP'S, WE KNOW WE HAVE SEVERAL CIP'S OUT THERE THAT ARE MULTI-YEAR PROJECTS.

WE WILL BUDGET FOR MAXIMUM SPENDING. AND IF IT DOESN'T MATERIALIZE, OFTENTIMES WE CAN REPROGRAM THAT INTO THE FUTURE YEAR.

AND SO IT'S NOT LOST IT'S ESSENTIALLY DEFERRED OR IT'S JUST BEING UNDERSPENT IN THIS FISCAL YEAR.

SO IN SUMMARY, THE PRIMARY DRIVERS OF UNDERSPENDING REALLY ARE COMING FROM VACANCIES UNDER SPENT CONTRACTS AND THEN MULTI-YEAR CIP'S THAT WE SEE.

MOVING ON TO THE FUNDING CATEGORIES, THIS IS THE FLIP SIDE OF THE COIN.

ONE COIN, TWO SIDES. THE FIRST SIDE WAS THE MONEY OUT.

THIS IS THE MONEY IN. THESE ARE THE REVENUE SOURCES THAT SUPPORT THOSE COSTS.

YOU CAN SEE SORTED AGAIN ON THE TOP. WE HAVE THE LARGEST FUNDING CATEGORY AT THE TOP DOWN TO THE LOWEST FUNDING CATEGORY AT THE BOTTOM.

OUR ADJUSTED BUDGET, YOU SEE $582.8 MILLION IN AID FROM OTHER GOVERNMENTAL AGENCIES.

THIS IS REALLY DRIVEN. AS YOU HEARD ME SPEAK ABOUT THE SUBVENTED DEPARTMENTS.

EXTERNAL FUNDING SOURCES THAT ARE DRIVING PROGRAMS, STATE AND FEDERAL PROGRAMS. AND SO THIS IS THE OFFSET THAT WE SEE TO SUPPORT THOSE CHARGES.

OUR MID-YEAR PROJECTION IS ESTIMATING $452 MILLION FOR THAT CATEGORY, LEAVING $130.5 MILLION COMING IN UNDER BUDGET.

BUT IF WE'RE UNDERSPENDING IN THOSE PROGRAMS, WE, ON THE FLIP SIDE, WILL NOT SEE THAT MONEY TO COME IN BECAUSE THE COST HASN'T BEEN INCURRED TO THEN RECEIVE THAT OFFSET. ON THE FAR RIGHT COLUMN, I WANT TO HIGHLIGHT PROJECTED LOCAL DISCRETIONARY FUNDING.

YOU CAN SEE IN THIS CATEGORY, WHILE IT IS THE LARGEST FUNDING CATEGORY FOR OUR ORGANIZATION, ONLY 2 MILLION OF THAT IN THAT BUCKET IS DISCRETIONARY.

SO WHILE IT DOES APPEAR IN THE BUDGET PACKAGE THAT THERE IS A LOT OF FUNDING COMING IN OF THIS CATEGORY, THE LARGEST CATEGORY, IT REALLY DOESN'T HAVE A LOT OF FLEXIBILITY FOR OUR BOARD TO PROVIDE PROGRAMING.

WE HAVE OTHER REVENUES WHICH MAY SUPPORT CERTAIN PROJECTS OR TRANSFERS, AND THAT REALLY SEEMS TO BE COMING IN A LITTLE BIT LESS AGAIN, OFTENTIMES IF THERE'S A MULTI YEAR CAPITAL IMPROVEMENT PROJECT OR SOME OTHER SOURCE OF FUNDING THAT'S PROVIDING A MULTI YEAR PROJECT THAT IS COMING IN UNDER BUDGET, BUT IT CAN BE DEFERRED TO ANOTHER YEAR AS WE REPROGRAM THE UNSPENT PORTION OF A PROJECT.

AND AGAIN DISCRETIONARY FUNDING IS AT $0.1 MILLION.

TAXES YOU CAN SEE AT $173 MILLION IS OUR BUDGET.

WE'RE ANTICIPATING REALLY TO COME IN PRETTY CLOSE TO BUDGET WITH A 0.2, POINT 2 MILLION VARIANCE.

OF THAT CATEGORY THIS REALLY IS WHERE THE MOST DISCRETIONARY FUNDING IS AT $136.7 MILLION.

THESE REALLY CONSIST OF PROPERTY TAXES AND SALES TAX.

AND WHILE OUR GENERAL PURPOSE REVENUES ARE IN THE GENERAL FUND, WHILE THOSE ARE DISCRETIONARY,

[01:00:01]

YOU SEE THE DIFFERENCE BETWEEN 173 AND 186. SOME TAXES ALSO GO TO SUPPORT OUR FIRE FUND.

WE ALSO HAVE TAXES THAT GO AND SUPPORT OUR ROADS FUND.

SO WHILE IT IS THE LARGEST CATEGORY FOR DISCRETIONARY, IT'S NOT THE ONLY ONE THAT RECEIVES TAX REVENUE.

CHARGES FOR CURRENT SERVICES. WE SEE A LOT OF FUNDING COMING IN HERE FOR OUR BEHAVIORAL HEALTH DEPARTMENT FOR CERTAIN GRANTS AND ALSO FOR MEDI-CAL REIMBURSEMENT.

AGAIN, SPEAKING TO THE MAXIMUM PROGRAMING CAPACITY.

IF IN FACT WE DON'T HAVE CLIENTS TO REALIZE SOME SERVICES BECAUSE THE DEMAND MAY NOT BE THERE, THEN IN FACT, WE'VE BUDGETED TO ALLOW FOR THAT, BUT THEN THE REIMBURSEMENT MAY NOT COME IN IF THERE AREN'T AS MANY CLIENTS AS WE'VE BUDGETED FOR. AND A LITTLE, A SMALL AMOUNT, $2.9 MILLION IN OUR DISCRETIONARY FUNDS, USE OF MONEY AND PROPERTY THAT NEXT CATEGORY PRIMARILY REPRESENTS INTEREST REVENUE. YOU CAN SEE $13.3 MILLION BUDGETED.

WE ARE ANTICIPATING TO RECEIVE 17.8 MILLION BY FISCAL YEAR END.

$4.5 MILLION OVER BUDGET. $6.7 MILLION OF THE TOTAL ANTICIPATED AMOUNT IS IN OUR DISCRETIONARY FUNDING.

WE'LL SPEAK A LITTLE BIT MORE ABOUT THAT ON THE NEXT SLIDE, BUT I WANTED TO HIGHLIGHT THAT INTEREST REVENUE IS NOT ONLY EARNED BY OUR GENERAL FUND.

THERE ARE OTHER FUNDS. AGAIN, IF THEY CARRY THEIR OWN FUND BALANCE FIRE, CASTLE ROADS, THEY WILL GENERATE THEIR OWN INTEREST REVENUE.

AND THEN TWO SMALLER CATEGORIES THAT AGAIN, DON'T HAVE QUITE AS MUCH DISCRETIONARY FUNDING AND THEY ARE ANTICIPATED TO COME IN PRETTY CLOSE TO BUDGET.

SO TO SUMMARIZE, YOU CAN SEE $224 MILLION ANTICIPATED TO COME IN UNDER BUDGET FOR OUR FUNDING SOURCES.

BUT AGAIN, THAT ONE COIN, TWO SIDES THE FIRST SLIDE, THE PREVIOUS SLIDE THAT WE SAW, WE ARE UNDER SPENDING.

BUT THE FLIP SIDE TO THAT COIN IS WE ARE UNDER COLLECTING PRIMARILY DRIVEN BY NOT REALIZING COSTS THAT THEN WOULD OTHERWISE BE REIMBURSED.

AND ONE OTHER THING I JUST DO WANT TO POINT OUT, THE LOCAL DISCRETIONARY FUNDING REALLY AMOUNTS TO ABOUT 17% OF OUR TOTAL REVENUES.

SO AGAIN, A SMALL AMOUNT. BUT IF IN FACT WE DO HAVE TO REDIRECT FOR OTHER MANDATED COSTS, THERE COULD HAVE A LARGE IMPACT.

MOVING INTO OUR GENERAL PURPOSE REVENUES, THIS IS THE DISCRETIONARY FUNDING, THE ONGOING SOURCE OF FUNDING THAT THE BOARD WILL UTILIZE FOR PRIORITIES LOCAL COMMUNITY PRIORITIES. AND THEN ALSO, AGAIN, I WANT TO DRIVE HOME THE POINT OF THE UNFUNDED MANDATES, RIGHT? WE'RE GOING TO DRILL A LITTLE BIT DEEPER INTO THIS.

YOU SEE THE TOP TWO CATEGORIES ARE THE LARGEST SOURCES PROPERTY TAXES.

WE SEE THAT WE ARE GOING TO REALIZE A LITTLE MORE THAN $6 MILLION OVER BUDGET COMBINED FOR THOSE TWO LINES BY JUNE 30TH BY FISCAL YEAR END. THESE LINE ITEMS TYPICALLY ARE BUDGETED SOMEWHAT CONSERVATIVELY.

THE BEST INFORMATION WE HAVE AS WE EMBARK ON PROPOSED BUDGET INCLUDES PRIOR YEAR ACTUALS, OR WHAT WE'RE ESTIMATING TO BE PRIOR YEAR ACTUALS AS WE WORK ON THAT PACKAGE RIGHT NOW. A LOT OF TIMES THE SPECIFIC DATA IS NOT AVAILABLE UNTIL LATER ON INTO THAT FISCAL YEAR.

SO WE DON'T WANT TO OVER BUDGET AND ASSUME THAT THERE'S GOING TO BE MORE MONEY TO SUPPORT OUR COSTS THAN WE MAY REALIZE.

YOU CAN SEE SALES TAX MOVING DOWN TO THAT THIRD LINE.

WE HAVE BUDGETED $11.7 MILLION IN THIS CURRENT BUDGET PACKAGE.

WE ARE ESTIMATING $13 MILLION, WHICH IS A OUTPERFORMING ANTICIPATED OUTPERFORM BUDGET BY ABOUT $1.3 MILLION.

THAT AMOUNT IS LIKELY A ONE TIME CHANGE. WE ARE SEEING SOME LARGE SCALE PROJECTS IN THE AREA.

AND FOR THAT WE ARE GENERATING ADDITIONAL SALES TAX REVENUE, BUT WE DON'T ANTICIPATE THAT TO CARRY FORWARD FOR MULTIPLE YEARS.

SO WE WILL CONTINUE TO BUDGET THIS CONSERVATIVELY AND REALIZE THE ONE TIME INCREASES AS THEY COME THROUGH INTEREST.

WE HAVE BUDGETED AT $5 MILLION, WITH $6.7 MILLION ESTIMATED TO COME IN BY JUNE 30TH, ABOUT $1.7 MILLION OVER BUDGET.

AGAIN, THIS IS TYPICALLY ALSO BUDGETED SOMEWHAT CONSERVATIVELY.

IT'S SUBJECT TO DIFFERENT MARKET CONDITIONS THAT WE CAN'T PREDICT AT THE TIME THAT WE PREPARE OUR BUDGET.

I WILL NOTE THAT WHILE THIS TENDS TO OUTPERFORM BUDGET, WE HAVE BEEN SEEING SOME SOFTENING OF THIS.

FOR REFERENCE, OUR FISCAL YEAR 24-25 CLOSED OUT WAS $7.5 MILLION.

SO YOU CAN SEE IT'S NEARLY $1 MILLION LESS THAN OUR PRIOR YEAR PERFORMANCE.

SO WE WILL CONTINUE TO MONITOR THAT AND INCLUDE THAT CONSERVATIVELY IN OUR BUDGET PACKAGE.

THE REMAINING LINES REALLY ARE SCHEDULED TO COME IN OR LOOKING TO COME IN PRETTY CLOSE TO BUDGET.

SO NOT A LOT OF VARIANCE ON THOSE, LEAVING OUR GRAND TOTAL OF GENERAL PURPOSE REVENUES ESTIMATED TO COME IN $10.3 MILLION OVER BUDGET.

[01:05:11]

THIS REFLECTS WHERE WE BELIEVE THAT WE WILL LAND BY JUNE 30TH, OUR FISCAL YEAR END.

AND THIS HELPS US PLAN FOR OUR PROPOSED BUDGET PACKAGE.

IN WALKING YOU THROUGH THIS INFORMATION I WILL SHARE WITH YOU ON THE LEFT SIDE FOR PERSPECTIVE, WE HAVE OUR FISCAL YEAR 24, 25 ACTUALS FOR OUR GENERAL FUND.

THIS WHOLE SLIDE IS REFLECTIVE OF ONLY OUR GENERAL FUND.

WE'VE TAKEN ALL THE OTHER FUNDS OUT BECAUSE THIS WILL HAVE THE ULTIMATE IMPACT OF OUR NET COUNTY COST.

AND SO ON THE LEFT SIDE, YOU CAN SEE OUR FISCAL YEAR 24-25 CLOSED OUT WITH A $2.2 MILLION DEFICIT.

WHAT THAT MEANS IS THAT UTILIZED $2.2 MILLION OF FUND BALANCE AS WE CLOSED OUT OUR FISCAL YEAR.

MOVING INTO THAT MIDDLE SPACE AND SORRY, LET ME BACK UP JUST A LITTLE BIT.

THE BLUE BAR REPRESENTS APPROPRIATIONS SPENDING AUTHORITY OR EXPENSES, AND THEN THE YELLOW BAR REPRESENTS REVENUES.

THAT'S THE INFLOW OF MONEY. AND THAT'S HOW WE SUPPORT THE COSTS.

THAT MIDDLE SECTION YOU CAN SEE AS THE ADJUSTED BUDGET, THAT'S THE GENERAL FUND SPENDING PLAN THAT WE HAVE RIGHT NOW, $844 MILLION. AND THEN SUPPORTING THAT OUR REVENUES OF $752.7 MILLION.

THE DIFFERENCE BETWEEN THOSE THEY'RE NOT 1 TO 1, BECAUSE THE $91.7 MILLION THAT I HAD MENTIONED ON PREVIOUS SLIDES, THAT'S THE FUND BALANCE THAT COVERS THE GAP BETWEEN INCOMING MONEY AND THE NEED TO SPEND CERTAIN FUNDS FOR OUR EXPENSES.

SO THE $91.7 MILLION REPRESENTS FUND BALANCE IN THAT SPACE.

MOVING TO THE RIGHT SIDE, YOU CAN SEE WHERE THE ESTIMATED ACTUALS ARE.

THIS IS A DIRECT RESULT OF THE INPUT THAT WE'VE RECEIVED FROM DEPARTMENTS THROUGH THIS PROCESS.

AND THIS IS ALL TABULATED UP AND HELPS US AGAIN GUIDE AS WE PROGRAM IN FOR OUR PROPOSED BUDGET PACKAGE.

YOU CAN SEE OUR ESTIMATED SPENDING IS PLANNED TO COME IN AT $646 MILLION AND THE ESTIMATED REVENUES OFFSETTING REVENUES TO SUPPORT COSTS IS ESTIMATED AT $631 MILLION. THE SUM OF THOSE AS YOU COMPARE THEM AMOUNTS TO AN ESTIMATED $14.4 MILLION DEFICIT. NOW, WHILE THERE IS ANTICIPATED BUDGETARY SAVINGS, YOU CAN SEE COMPARED TO THAT MIDDLE SPACE WE ARE NOT QUITE SPENDING THE FULL AMOUNT THAT HAS BEEN PROGRAMED. THERE IS AN INDICATION HERE THAT THE SPENDING NEEDS THAT ARE NOT OTHERWISE COVERED BY AN EXTERNAL SOURCE IS OUTPACING WHAT WE DID IN THE PRIOR YEAR.

AND SO DIPPING FURTHER INTO THAT FUND BALANCE UTILIZATION.

AND SO MAYBE FOR A LITTLE BIT OF PERSPECTIVE, LAST YEAR WE PROGRAMED $77 MILLION IN AVAILABLE FUND BALANCE.

IF THIS 14 MILLION DOES IN FACT MATERIALIZE, THAT PUTS US AT ABOUT $64 MILLION IN AVAILABLE FUND BALANCE.

AND SO YOU CAN SEE THAT OUR SPENDING CAPACITY THEN WOULD BE FURTHER RESTRICTED, AND WE WOULD HAVE TO TAKE A CLOSER LOOK AT WHAT OUR SPENDING PLAN LOOKS LIKE. ONE THING I WANT TO PROVIDE A LITTLE BIT OF CONTEXT ON IS THE PREVIOUS SLIDE.

OUR GENERAL PURPOSE REVENUES LOOKED THEY ARE IN FACT PERFORMING REALLY WELL COMPARED TO BUDGET.

THIS SLIDE PAINTS A DIFFERENT PICTURE, RIGHT? SHOWS THAT MAYBE WE'RE OVERSPENDING OR COSTS ARE EXCEEDING WHAT WE HAVE AVAILABLE.

THE DIFFERENCE, IF I CAN SHARE WITH YOU ON THIS SLIDE.

WE'VE COMPARED BUDGET TO ACTUALS IN ALL THE PREVIOUS INFORMATION.

THIS ONE I WANT TO COMPARE ACTUALS TO ACTUALS.

SO OUR PRIOR YEAR FISCAL YEAR ACTUALS YOU CAN SEE THE $2.2 MILLION DEFICIT.

MOVING INTO LOOKING AT THE DETAILS THIS CURRENT YEAR, ACTUAL SPENDING SHOWS THAT WE HAVE ABOUT $16.4 MILLION MORE IN UTILIZATION OF NET COUNTY COSTS THAN OUR PRIOR YEAR. SO YOU TAKE THAT $2.2 MILLION, YOU ADD $16.4 MILLION MORE.

AND THEN ONE COMPARISON FOR OUR GENERAL PURPOSE REVENUES ARE ANTICIPATED TO EXCEED PRIOR YEAR BY 44.2 MILLION DOLLARS.

SO THE 2.2 PLUS 16 GETS YOU IN THE $18 MILLION RANGE.

AND THEN IF YOU BACK OUT THE ADDITIONAL REVENUE TO $4 MILLION, THAT BRINGS YOU BACK DOWN TO ABOUT $14 MILLION.

AND SO AGAIN, IT REALLY HINGES ON THE UTILIZATION THAT WE'RE SEEING OF NET COUNTY COST AND NOT THE INCREASE OF, EXTERNAL FUNDING. IT SHOWS IF YOU CAN SEE COMPARE THE TWO BLUE SLIDES.

WE WERE AT $628 MILLION IN THE PRIOR YEAR. AND THEN IN THIS CURRENT YEAR, WE'RE ANTICIPATING $646 MILLION.

SO THAT'S AN INCREASE OF ABOUT $17.8 MILLION.

[01:10:04]

SO THAT REALLY DOES INDICATE THAT THERE'S A HEAVIER RELIANCE ON OUR NET COUNTY COST.

AS WE MOVE FORWARD, WE WILL CONTINUE TO MONITOR THIS.

AND WE HAVE A COUPLE MORE MONTHS LEFT IN OUR FISCAL YEAR.

SO OUR OFFICE IN COORDINATION WITH DEPARTMENTS WILL CONTINUE TO MONITOR WE WILL HAVE UPDATED INFORMATION AS WE PROVIDE OUR PROPOSED BUDGET PACKAGE FOR THE BOARD'S CONSIDERATION. AND THEN AS YOU'LL SEE IN A FUTURE SLIDE THERE WAS SOME STRATEGIES IMPLEMENTED TO ASK DEPARTMENTS TO LOOK AT ALTERNATIVE FUNDING REQUESTS AS THEY SUBMITTED THEIR PROPOSED BUDGET REQUESTS.

WE WANT TO ENSURE THAT THE PACKAGE WE BRING TO THE BOARD IS SUSTAINABLE, AND WE WANT TO IMPLEMENT SOMETHING IF IN FACT, IT'S NECESSARY TO MAKE SURE THAT WE'RE NOT OVERSPENDING AND CONTINUING TO BE IN THE DEFICIT RANGE.

MOVING INTO OUR STATE BUDGET IMPACTS. THE GOVERNOR'S BUDGET WAS, PROPOSED BUDGET, WAS ROLLED OUT IN JANUARY, INDICATED THERE WOULD BE A $3 BILLION DEFICIT, AND THE LEGISLATIVE ANALYST'S OFFICE PROJECTED A DEFICIT TO BE $18 BILLION.

ONE THING I WANT TO HIGHLIGHT HERE. WHY IS THE LEGISLATIVE ANALYST'S OFFICE IMPORTANT AND WHO ARE THEY AND WHY ARE THEY IMPORTANT? THEY ARE A NONPARTISAN FISCAL OFFICE THAT PROVIDES INDEPENDENT FISCAL ANALYSIS AND FORECASTING FOR THE LEGISLATURE.

THEIR APPROACH UTILIZES CONSERVATIVE ASSUMPTIONS AND TYPICALLY DIFFERS FROM THE GOVERNOR'S ADMINISTRATION.

WHILE BOTH THE GOVERNOR'S ADMINISTRATION AND THE LAOS ASSUMPTIONS AND PROJECTIONS CHANGE THROUGHOUT THE COURSE OF BUDGET DEVELOPMENT, THE LAO IS A RELIABLE AND IMPARTIAL SOURCE TO USE WHEN COMPARING AND ASSESSING POTENTIAL IMPACTS.

SO THAT HELPS US ASSESS MAYBE THE REALITY OF WHAT THE STATE'S BUDGET, WHAT THE GOVERNOR'S PROPOSED BUDGET IS, AND PERHAPS MAYBE BRACE FOR LARGER IMPACTS THAT MAYBE AREN'T PRESENTED IN THAT INITIAL PLAN.

ONE THING THAT WE KNOW FOR FOUR CONSECUTIVE FISCAL YEARS, CALIFORNIA HAS FACED MULTIBILLION DOLLAR DEFICITS.

WE ANTICIPATE THIS TREND TO CONTINUE TO THE TUNE OF 20 BILLION TO $30 BILLION ANNUALLY.

REALLY THE BOTTOM LINE, THE STATE SPENDING PLAN IS NOT SUSTAINABLE.

THE GOVERNOR'S CURRENT BUDGET PROPOSAL WAS SILENT ON A LOT OF MAJOR TOPICS, AS WE HEARD IN THE PRIOR PRESENTATION.

BUT WE DO KNOW THAT THERE'S A LOT OF THINGS HAPPENING AND HAS THE ABILITY TO IMPACT US.

AND AGAIN, IN THAT DISCRETIONARY SLICE OF FUNDING THAT THE BOARD HAS MOST CONTROL OVER.

IF IN FACT WE ARE MANDATED, THEN THAT WOULD HAVE TO BE THE FIRST AREA THAT WE LOOK AT TO FUND ANY PROGRAMS OR REQUIREMENTS THAT ARE NECESSARY.

WE DON'T KNOW UNTIL POSSIBLY THE MAY REVISE OR EVEN JUNE 15TH, WHEN THE LEGISLATURE ADOPTS THE BUDGET, WHAT THOSE MAY LOOK LIKE. SO WE WILL CONTINUE TO PROCEED WITH EXTREME CAUTION AS WE PLAN FOR OUR PROPOSED BUDGET AND ARE READY TO PIVOT, IF IN FACT, THERE ARE ITEMS THAT NEED TO BE ADDRESSED.

AND I WON'T CONTINUE TO HAMMER THIS POINT HOME, BUT HR 1, WE HAD SOME GOOD DISCUSSION JUST A LITTLE WHILE AGO ABOUT THE PRIMARY CONCERN THAT WE SEE IN INDIGENT HEALTH CARE. AS MENTIONED THERE WAS PREVIOUSLY FUNDING THAT WAS TAKEN AWAY AFTER THE AFFORDABLE CARE ACT DIDN'T RELIEVE THE MANDATE, BUT REALLY MINIMIZED THE UTILIZATION OF THAT PROGRAM.

AND SO WITHOUT HAVING ADDITIONAL FUNDING COME BACK TO HELP US SUPPORT THAT REQUIREMENT IT REALLY DOES HINGE ON THE DISCRETIONARY FUNDING THAT THE BOARD HAS AUTHORITY TO PROGRAM. MOVING INTO OUR 26-27 PRELIMINARY BUDGET OUTLOOK FOR MERCED COUNTY, WE HAVE INCLUDED NEGOTIATED LABOR INCREASES OF $12.6 MILLION COUNTY WIDE, OF WHICH $5.3 MILLION WILL UTILIZE NET COUNTY COSTS THAT DISCRETIONARY FUNDING. WE HAVE HEALTH CARE PREMIUM INCREASES THAT WE LEARNED ABOUT A COUPLE MONTHS AGO WHEN THE BOARD TOOK ACTION OF 13.9 MILLION OR 13.9% PREMIUM INCREASES. THAT AMOUNTS TO APPROXIMATELY $5.2 MILLION IN OUR CALENDAR YEAR 2026 ESTIMATES. WHILE NOT ALL OF THAT WAS ABSORBED BY THE COUNTY A LARGE PORTION WAS, AND SO WE HAVE INCLUDED THOSE ESTIMATES WITHIN THE PROPOSED SPENDING PLAN.

WE HAVE INCREASED COUNTYWIDE FUNDING REQUIREMENTS OF GENERAL LIABILITY BY $4.2 MILLION.

WHILE WE HAVE ESTIMATED PREMIUM INCREASES, THERE ARE OTHER PROGRAM COSTS THAT ARE ATTACHED TO THAT THAT WE HAVE TO PLAN FOR, AND WE HAVE INCREASES TO OUR ANNUAL CORRECTIONAL MEDICAL COSTS, WHICH ARE EMBEDDED IN OUR JAIL AND JUVENILE HALL OPERATIONS.

AND THAT ALSO COMES FROM DISCRETIONARY FUNDING.

WE HAVE ANNUAL DEBT SERVICE AND LEASE PAYMENTS OF $8.7 MILLION, WHICH INCLUDES MEASURE V THAT THE BOARD RECENTLY TOOK ACTION ON THE BONDING OF ROADS

[01:15:03]

MOVING INTO THAT NEXT BULLET POINT, YOU CAN SEE ESTIMATED GROWTH OF $7.4 MILLION IN GENERAL PURPOSE REVENUES.

SO WHILE ALL THOSE PRIOR BULLET POINTS DON'T NECESSARILY REQUIRE GENERAL PURPOSE REVENUES A LARGE PART OF THEM DO.

AND SO YOU CAN SEE IF YOU QUICKLY ADD UP SOME OF THOSE NUMBERS THEY FAR OUTPACE THE $7.4 MILLION IN DISCRETIONARY FUNDING THAT WE HAVE IDENTIFIED FOR PROGRAMING IN OUR PROPOSED BUDGET PACKAGE.

AND THEN FURTHER, I JUST WANT TO HIGHLIGHT THE ESTIMATED REDUCTION OF $14.4 MILLION IN AVAILABLE FUND BALANCE.

JUST SPOKE A LITTLE BIT BRIEFLY ABOUT IF IN FACT THAT DOES MATERIALIZE, WE WILL HAVE TO LOOK AT A TIGHTER SPENDING PLAN.

SO THAT WAY WE ARE NOT CONTINUOUSLY DIPPING INTO A FUNDING SOURCE THAT IS NOT ONGOING.

AND THEN FINALLY, I WANT TO HIGHLIGHT SOME BUDGET DEVELOPMENT STRATEGIES THAT WE HAVE INCLUDED IN OUR 26-27 PROPOSED BUDGET PLAN.

WE HAVE DEPARTMENTS HAVE ASKED DEPARTMENTS TO MINIMIZE ADDITIONAL SPENDING COMMITMENTS, SPECIFICALLY THOSE THAT MAY REQUIRE NET COUNTY COST.

AS YOU CAN SEE, THE PREVIOUS SLIDES HAVE OUTLINED THAT THE, NEED FOR SPENDING REQUIREMENTS THOSE PRIMARY LARGE AMOUNTS THAT WE SAW ARE OUTPACING WHAT WE HAVE AVAILABLE. SO THE LAST THING WE WANT TO DO IS CONTINUE TO ENCUMBER THOSE FUNDING SOURCES, WHEN IN FACT THEY'RE NOT GROWING AND KEEPING PACE WITH THE COST OF SPENDING.

IDENTIFY STRATEGIES TO ALLOW FOR REDUCED FUNDING SITUATIONS OR INCREASED MANDATED COSTS.

ESSENTIALLY, WE'VE ASKED DEPARTMENTS TO PROVIDE AN ALTERNATIVE FUNDING PLAN FOR THEIR BUDGETS, AND THAT REFLECTS SOME REDUCED SPENDING REQUIREMENTS.

SO IF IN FACT, WE HAVE TO PIVOT AND MAKE REDUCTIONS AND ACCOMMODATE OTHER COMPONENTS THAT WE ARE READY TO DO, THAT. WE HAVE COMMITTED TO MAINTAINING THE GENERAL FUND RESERVE, WHICH IS THE RAINY DAY FUND, IN ACCORDANCE WITH THE BOARD ESTABLISHED POLICY. THAT WILL BE IMPORTANT IF WE ARE ABOUT TO EMBARK IN LEAN FINANCIAL TIMES OR POTENTIALLY EMERGENCY SITUATIONS WHERE DIFFERENT FUNDING SOURCES ARE CHANGING AND PERHAPS BEING ELIMINATED.

WE ARE REVIEWING VACANT POSITION LISTS FOR POSSIBLE DELETIONS, PERHAPS RELIEVING THE UTILIZATION OF FUNDING THAT COULD SUPPORT NECESSARY COSTS THROUGHOUT THE ORGANIZATION. AND THEN WE HAVE A HARD LOOK, AS THE CEO HAD MENTIONED, ABOUT MANDATED VERSUS DISCRETIONARY PROGRAMING AND HOW THAT LOOKS IN THIS BUDGET PACKAGE.

THAT CONCLUDES MY PRESENTATION, AND I AM AVAILABLE FOR ANY QUESTIONS FROM THE BOARD.

WOW VANESSA ISN'T THAT EXCITING. I CAN JUST SEE EVERYBODY WIDE AWAKE OUT THERE.

EXCITING INFORMATION ON FOR SAINT PATRICK'S DAY FOR SURE.

THE BOARD RECOGNIZES SUPERVISOR SILVEIRA. THANK YOU, MR. CHAIR. JUST REALLY QUICKLY ON THE DEBT SERVICE, I JUST WANT TO FOR CLARIFICATION PURPOSES, THAT ANNUAL DEBT SERVICE. THE MEASURE V THAT WE'RE EMBARKING ON THAT IS NOT COMING FROM GENERAL PURPOSE REVENUES.

THOSE ARE SPECIFICALLY COMING FROM, I KNOW THERE WAS A LOT OF QUESTIONS OUT THERE WHERE THE MONEY WOULD COME FROM. WE'RE JUST BORROWING AGAINST FUTURE MEASURE V REVENUES IN ORDER TO FRONT LOAD AND BE ABLE TO GET SOME MORE ROADS DONE.

YOU'RE CORRECT. AND THEN JUST. I KNOW THE ANSWER, BUT I WANT YOU TO SHARE IT IS WE'RE TALKING ABOUT A MID-YEAR BUDGET REVIEW, WHICH TYPICALLY OUR MID-YEAR ENDS IN DECEMBER AND NOW WE'RE IN MARCH.

YOU WANT TO EXPLAIN A LITTLE BIT WHY WE'RE SEEING IT IN MARCH VERSUS SEEING IT LIKE, LET'S SAY JANUARY OR MAYBE EARLY FEBRUARY. YES.

SO DEPARTMENTS SUBMIT THEIR ESTIMATES TO US IN JANUARY.

WE ESTABLISH A ROLLOUT WITH INSTRUCTIONS AND GUIDANCE IN NOVEMBER.

AND THEN REALLY KIND OF ALLOW THEM TO START REVIEWING THEIR INFORMATION.

DECEMBER IS ABOUT THE SIX MONTH MARK OF ACTUALS, AND THEY RETURN THAT TO OUR OFFICE IN JANUARY.

AND THEN OUR TEAM, THE BUDGET TEAM, WILL BEGIN REVIEWING AND HAVING DIALOG WITH DEPARTMENTS, TALKING ABOUT THAT, DISCUSSING IT. AND SO IT'S A PRETTY ROBUST PROCESS, I WOULD SAY.

IT'S A MINI BUDGET PROCESS. IT'S SOMETHING THAT WE DIG REALLY DEEP INTO THE DETAILS AND DRILL INTO AND UNDERSTAND TRENDS AND TRY TO MAP OUT REALLY WHERE WE THINK THAT WE'RE GOING.

SO THAT WAY WE CAN PROVIDE THE BEST PLATFORM FOR US TO MAKE DECISIONS FOR PROPOSED BUDGET.

THANK YOU. AND THEN THE OTHER PART I WANT TO HIGHLIGHT ABOUT THAT IS, IS THAT THIS IS A RELATIVELY NEW PROCESS TO THE WAY THAT WE DO THINGS IN MERCED COUNTY.

AND SO I WOULD IMAGINE THAT AS DEPARTMENTS HAVE GONE THROUGH THIS OVER MULTIPLE CYCLES, IT GETS A LITTLE BIT EASIER AND A LITTLE BIT QUICKER.

BUT I THINK AS I THINK IT'S A VERY WELL WARRANTED THAT WE ARE GOING THROUGH THIS PROCESS BECAUSE IT IS WE'RE GOING TO TAKE THIS INFORMATION AND IT HELPS TO SET THE STAGE BECAUSE ON PARALLEL PATHS, THE BUDGET FOR THE 26-27 FISCAL YEAR IS BEING DEVELOPED NOW.

[01:20:04]

SO VANESSA, I WANT TO THANK YOU SPECIFICALLY FOR THE SLIDE.

THAT SHOWS THESE ARE SCENARIOS. AND UNFORTUNATELY, WE DON'T HAVE ALL THIS MONEY JUST SITTING IN A BANK AND WE GET THE BUDGET WITH ACTUALS.

WE ARE BUDGETING ON ESTIMATES, ESTIMATES THAT AND WE HAVE A LOT OF DIFFERING FACTORS IN THERE.

BUT JUST TO KIND OF PUT IT OUT THERE, DO I THINK WE END UP AT 14.4? NO, BECAUSE WE DON'T KNOW WHAT THAT NUMBER IS GOING TO BE UNTIL WE GET CLOSER TO THE END OF THE FISCAL YEAR. THAT IS THE REASON WHY WE PASS A PROPOSED BUDGET IN JUNE, SO THAT WE CAN START OUR FISCAL YEAR IN JULY.

BUT KNOWING THAT WE ARE SO HEAVILY RELIANT ON STATE AND FEDERAL FUNDING, THEY PASS THEIR BUDGET IN JUNE.

THE FEDERAL GOVERNMENT, IF THEY PASS A BUDGET, ISN'T UNTIL DOESN'T START TILL OCTOBER.

THAT GIVES US TIME TO AS AS DECISIONS ARE MADE THAT ARE OUTSIDE OF OUR CONTROL, THAT WE'RE NIMBLE ENOUGH TO BE ABLE TO ADJUST.

WE DON'T WANT TO ASSUME THAT THEY'RE GOING TO DO ANYTHING BECAUSE THAT WILL GET YOU IN VERY BIG TROUBLE.

SO I WANT TO THANK YOU FOR THE EFFORT THAT'S GONE INTO THIS.

I WANT TO THANK THE DEPARTMENT HEADS AND ALL THE FISCAL FOLKS IN THEIR DEPARTMENTS AS WE ENGAGE IN THIS KIND OF NEWER PROCESS, I THINK IT'S GOING TO BE BENEFICIAL TO EVERYBODY. AND I REALLY, IT GOES BACK TO I WANT TO THANK MY COLLEAGUE SUPERVISOR PAREIRA, WHO POINTED THIS OUT TO ME. I REALLY DIDN'T LOOK AT IT IN THAT WAY.

YOU KNOW, IN OUR BUDGET, WE REALLY THERE NEEDS TO BE AND IT'S LACK OF BETTER WORDS.

THERE NEEDS TO BE THE RIGHT AMOUNT OF FLUFF IN OUR BUDGET.

BECAUSE IF OUR BUDGET IS TOO LEAN, IF WE RUN INTO A SITUATION NOW WITH LIKE HR 1, THERE'S NOTHING LEFT TO STRIP, THERE'S NOTHING LEFT TO CUT. AND IF YOU DO HAVE TO MAKE MORE CUTS, THAT IMMEDIATELY MEANS, ESPECIALLY IN THE SMALLER DEPARTMENTS, THAT MEANS YOU'RE CUTTING PERSONNEL, RIGHT? SO THE RIGHT AMOUNT OF FLUFF IN YOUR BUDGET, I DON'T KNOW THE BETTER WORD HEALTHINESS IN YOUR BUDGET MAYBE IS A BETTER ONE.

MARGIN. MARGIN IS GOOD. BUT WHEN WE SEE THOSE NUMBERS OF YOU KNOW, $91 MILLION IN FUND BALANCE THAT WE VOTE ON GIVING THE DISCRETION THAT IF EVERYBODY SPENT EVERY DOLLAR THAT THEY WERE THAT WE ALLOCATED AS A BOARD TO THEM, WE'RE GOING TO BE IN REAL BIG TROUBLE THE NEXT YEAR. AND I DON'T LIKE IT.

I DON'T LIKE THAT OUR FUND BALANCE KEEPS GROWING.

I KNOW IT'S A PRODUCT OF THE WAY THAT WE BUDGET, BUT IT'S, THAT'S ONE TIME MONEY AND, AND YOU WILL SEE A SLIDE AT SOME POINT THAT'LL SHOW US HOW MUCH OF THAT ONE TIME MONEY IS GOING TO ONE TIME THINGS AND HOW MUCH OF THAT MONEY IS GOING TO ONGOING COSTS.

AND THAT'S THE SCARY PART. WE'RE GOING TO GET OURSELVES INTO A LITTLE PICKLE HERE IF WE CONTINUE DOWN THAT ROAD.

SO I THINK THIS HELPS FOLKS TO UNDERSTAND, LIKE WHEN YOU'RE BUDGETING, WE WANT YOU TO, WE WANT YOU TO DO THE GOOD WORK THAT YOU'RE TASKED WITH DOING AND GIVE YOU THE RESOURCES THAT YOU NEED, BUT ADDING FLUFF INTO YOUR BUDGET.

THERE'S SO MANY OPPORTUNITY COSTS THAT ARE LOST.

RIGHT? AND WHAT I MEAN BY THAT IS, IS IF THIS MONEY IS SITTING AND IT'S BUDGETED THAT IT'S GOING TO GO TO THIS PROGRAM AND IT'S NOT GOING TO BE SPENT, THAT MEANS SOMETHING ELSE OVER HERE IS NOT GOING TO BE GETTING DONE. SO THE EXAMPLE I'LL USE IS IF THERE'S A $3 MILLION PROJECT TODAY AND THIS MONEY IS SITTING OVER HERE AND IT'S WE KNOW THAT IT'S NOT GOING TO BE USED, BUT IT'S BUDGETED.

WE HAVE THIS $3 MILLION PROGRAM PROJECT, WHATEVER YOU WANT TO CALL IT OVER HERE.

WE CAN'T DO THAT NOW THAT HAS TO WAIT ANOTHER YEAR.

JUST THE COST OF INFLATION, THE RISING COST OF CONSTRUCTION, YOU PICK IT NOW BY THE TIME WE ACTUALLY GET TO THIS PROJECT NOW, IT'S A $3.5 MILLION PROJECT. SO I THINK THAT WE NEED TO WORK ON CLEANING UP THOSE TYPE OF THINGS.

AND I THINK WITH THE DEPARTMENT HEADS HELP AND THEIR FISCAL FOLKS, WE CAN GET THOSE NUMBERS DOWN TO A MORE REALISTIC NUMBER OF WHAT YOU NEED TO BE ABLE TO DO YOUR JOBS AND DO YOUR BUSINESS AND ALLOW US TO DO OTHER THINGS THAT WE NEED TO DO AS AS A COUNTY GOVERNMENT.

THAT'S ALL MY COMMENTS. MR. CHAIR, THANK YOU. THANK YOU.

CHAIR RECOGNIZES SUPERVISOR PAREIRA. THANK YOU CHAIR.

SO I DIDN'T USE THE WORD FLUFF WHEN I WAS TALKING TO SUPERVISOR SILVEIRA.

MY WIFE DOES BOOKKEEPING, AND THAT WOULD DRIVE HER NUTS IF SHE THOUGHT THAT I USED THE WORD FLUFF, BUT ANYWAYS BUT MARGIN IS AN ACCURATE DESCRIPTION.

SO CAN YOU GO BACK TO THE SLIDE WITH THE BLUE AND YELLOW BARS? I DON'T KNOW, THE. OH, YEAH. PAGE SEVEN. SO I DON'T KNOW.

I MEAN, I WANT TO CLARIFY THIS BECAUSE I THINK THE GENERAL PUBLIC OR CONSTITUENTS COULD LOOK AT THAT AND SAY THAT THAT, YOU KNOW, WE WERE 2. MILLION, $2.2 MILLION SHORT IN 24, 25.

BUT WE ACTUALLY HAD A BALANCED BUDGET. AND WHEN YOU TAKE INTO ACCOUNT THE FUND BALANCE THAT WE USE TO COVER THE 2.2 MILLION THAT GENERALLY WE WERE BALANCED AT THE END OF THE YEAR. RIGHT. IS THAT ACCURATE? YES. OKAY. AND THEN I'LL BRING YOUR ATTENTION TO THE 14.4 BECAUSE I'M VERY FISCALLY CONSERVATIVE AND I, AND I TAKE YOUR MONEY AS MY RESPONSIBILITY. AND SO I JUST KIND OF WANT TO CLARIFY THAT OFTENTIMES WHEN WE'VE COME TO PROPOSED

[01:25:04]

BY THE TIME WE GET TO CLOSE OUT OUR BOOKS, WE'RE BACK TO BALANCED.

AND THAT, COMES AS A COUPLE OF THINGS. ONE IS THAT STATE AND FEDS PAY US SLOW.

SOMETIMES IT'S 60 OR 90 DAYS AFTER WE HAVE SPENT THE MONEY THAT WE GET REIMBURSED.

AND SO THAT'S ONE OF THE REASONS. NOW, THIS ONE YOU'RE TELLING ME DOES NOT INCLUDE THAT MONEY, RIGHT THAT DEPARTMENTS HAVE. IF IT'S A BILLABLE EXPENSE THAT'S INCLUDED IN THEIR INCOME.

THAT'S CORRECT. THIS, REPRESENTS WHAT WE WOULD ANTICIPATE CLOSING OUT WITH, ANY OFFSETTING REVENUE THAT WE WERE DUE.

AND SO IF DEPARTMENT A HAD BILLABLE ACTIVITIES THAT AMOUNTED TO $5 MILLION WE WOULD ALSO REFLECT AS AN ACCRUAL THAT $5 MILLION IN OFFSETTING REVENUE.

SO THAT REIMBURSABLE AMOUNT IS REFLECTED HERE AND BALANCED OUT, FOR LACK OF BETTER WORD IN IN THIS SCENARIO.

RIGHT. AND WE HAVE FUND BALANCE OF SUPERVISOR SILVEIRA SAID THAT WE'LL COVER THAT MONEY IF IT IS SHORT AT THE END OF THE YEAR.

SO ANYWAYS, I HOPE THAT MAYBE REEXPLAINS A LITTLE BIT OF IT TO THE PUBLIC.

AND THEN ON TO THE THE NEXT SLIDE AND I, YOU KNOW, AND I THINK MOST PEOPLE KNOW THIS, BUT THE $3 BILLION DEFICIT THAT THE GOVERNOR IS PROJECTING IN HIS PROPOSED BUDGET IS A POLITICAL NUMBER.

AND IT'S BEEN MY EXPERIENCE OVER TIME THAT THE LAO'S OFFICE NUMBER IS FAR MORE ACCURATE, ALTHOUGH SOMETIMES IS ACTUALLY LOWER THAN THE ACTUAL NUMBER WHEN IT COMES TO THE END. AND SO THAT'S WHY YOUR BOARD UP HERE IS VERY CAUTIOUS IN THIS NEXT YEAR, BECAUSE WE KNOW THE STATE IS NOT GOING TO HAVE THE MONEY TO GIVE US TO BACKFILL THE MANDATES THAT THEY'VE GIVEN US TO PERFORM, I GUESS IS PROBABLY THE MOST ACCURATE WAY. AND SO I'M JUST REAL THANKFUL TO YOUR TEAM, TO THE CEO FOR BEING VERY MINDFUL OF THAT AND APPROACHING THIS NEXT YEAR'S BUDGET, VERY CONSERVATIVE. AND YOU KNOW, HOPEFULLY WE GET THROUGH THIS.

I WAS NOT ON THE BOARD BACK IN, YOU KNOW, THE 08, 09, 2010 TIME FRAME.

BUT BOY, WHEN I GOT INTO OFFICE, THERE WAS CERTAINLY A LOT OF PEOPLE THAT WERE, YOU KNOW, THAT WERE COUNTY STAFF AND OTHERS THAT REALLY WANTED TO SHARE WITH ME HOW BAD THAT WAS.

RIGHT. AND SUPERVISORS THAT SAID THAT, YOU KNOW, HAVING TO LAY OFF PEOPLE WAS SO DIFFICULT AND VERY HARD ON THEM EMOTIONALLY, AS WELL AS TASKING FROM A, FROM A JOB STANDPOINT.

SO ANYWAYS, I'LL LEAVE IT AT THAT FOR NOW. AND THANK YOU FOR THE TIME.

NO, I THINK IT WAS A GOOD IDEA THAT YOU BROUGHT UP THAT 14 BECAUSE IT MADE THE HAIR ON THE BACK OF MY NECK STAND UP AS WELL.

SO CHAIR RECOGNIZES SUPERVISOR PEDROZO. THANK YOU.

I THINK MY COLLEAGUES SAID EVERYTHING, ESPECIALLY THE ONE FROM DISTRICT FIVE.

BUT NO, I WANT TO SAY THANK YOU TO STAFF FOR PUTTING THIS TOGETHER.

AND I THINK IT'S REALLY IMPORTANT. AND I THINK THAT ONE OF THE THINGS THAT'S REALLY IMPORTANT, I WAS ON THE COUNCIL. CITY COUNCIL IN 2009 AND 2010, AND I'VE HAD TO VOTE TO LAY THOSE PEOPLE OFF.

AND SO WHEN YOU SAY FISCALLY CONSERVATIVE, I LOOK AT THIS AND I SAY, WHEN WE SAY WE'RE OVERSPENDING, WHAT WE'RE TAKING IN. I'M SORRY, BUT I THINK THAT THAT'S AN ACCURATE THAT'S VERY ACCURATE.

AND WE HAVE TO GET A LOT BETTER AT SAYING NO UP HERE.

BECAUSE IF WE'RE NOT, THEN WE'RE JUST GOING TO START GETTING THESE REQUESTS, REQUESTS, REQUESTS, REQUESTS. AND I'LL TELL YOU, BEING ON A COUNCIL AND NOW BOARD, WHEN BUDGETS ARE TIGHT, IT MAKES IT EASIER TO SAY NO BECAUSE THE REALITY IS THERE RIGHT. AND SO WHAT I'M ASKING, I THINK WE'VE ASKED BEFORE AND WILL CONTINUE TO ASK OUR DEPARTMENT HEADS IS REALLY SHARPEN THOSE PENCILS.

YOU KNOW, WE, ULTIMATELY WE'RE THE ONES THAT ARE GOING TO BE MAKING THE DECISIONS ON WHAT YOU HAVE TO PROVIDE.

BUT I THINK THERE'S A LINE IN HERE AND IT WAS SAID MULTIPLE TIMES, BOTH BY OUR CEO AND I THINK MISS ANDERSON, IS THAT WE NEED TO REVIEW VACANT POSITION LISTS FOR POSSIBLE DELETIONS.

THERE'S A LOT OF POSITIONS THAT HAVEN'T BEEN FILLED IN HOW MANY YEARS.

AND IT'S JUST IT'S GETTING. BUT THOSE ARE FUNDED.

AND SO WE HAVE TO REALLY LOOK AT THOSE AND BE COGNIZANT OF THE FACT THAT THOSE COST US MONEY.

AND THEN WHAT'S MANDATED VERSUS DISCRETIONARY? YOU KNOW, WHAT IS IT THAT WE HAVE TO DO KNOWING THAT THERE'S STUFF THAT'S CHANGING ALL THE TIME IN SACRAMENTO AND IN DC, BUT WHAT IS MANDATED THAT WE HAVE TO DO AND IDENTIFY THE UNKNOWNS WHEN WE CAN, YOU KNOW, AND BE PREPARED TO JUST KIND OF SEE THE WRITING ON THE WALL AND PUT THE MONEY THERE. BECAUSE, YOU KNOW, THERE'S CERTAIN THINGS THAT, WE'VE SPENT MONEY ON THAT, YOU KNOW, WE IT'S NICE TO HAVE, BUT IS IT THE, IS IT NECESSARY? IS IT MANDATED? AND I THINK THAT WE NEED TO MAKE SURE THAT WE'RE REALLY LOOKING AND TAKING A HARDER LOOK AT THAT.

[01:30:06]

VANESSA THANK YOU. THANK YOU TO YOU AND YOUR TEAM.

GREAT PRESENTATION. I COULD SEE THE EXCITEMENT IN THE AUDIENCE'S EYES.

AT THIS TIME I'LL OPEN IT UP FOR PUBLIC COMMENT REGARDING THE PRESENTATION.

THE COMMENT PERIOD OF THE PRESENTATION IS NOW CLOSED, SO I'LL MOVE ON TO THE CONSENT CALENDAR.

[CONSENT CALENDAR]

AT THIS TIME, I'LL OPEN UP PUBLIC COMMENT FOR THE CONSENT CALENDAR ITEMS 1 THROUGH 12.

THE COMMENT PERIOD FOR CONSENT CALENDAR ITEMS ONE THROUGH 12 IS NOW CLOSED.

I'LL BRING IT BACK TO THE BOARD. IS THERE ANY OTHER COMMENTS? IF NOT, I'LL ENTERTAIN A MOTION.

I HAVE A MOTION BY SUPERVISOR PAREIRA SECONDED BY SUPERVISOR SILVEIRA.

WE'LL GO AHEAD AND CALL FOR THE VOTE. PLEASE RECORD.

OH, MR. PAREIRA. OH OKAY, LET'S RECORD THE VOTE. MOTION PASSES. AND AT THIS TIME, I'D LIKE TO DO A PROCLAMATION FOR AMERICAN RED CROSS MONTH.

THANK YOU. I THINK BUT WE WANTED TO JUST THANK YOU FOR EVERYTHING YOU DO.

IT REALLY HIGHLIGHTS WHAT YOU GUYS.

THE BOARD OF SUPERVISORS, THE COUNTY OF MERCED DO HEREBY PROCLAIM THE MONTH OF MARCH 2026 AS AMERICAN RED CROSS MONTH AND ENCOURAGE THE CITIZENS OF MERCED COUNTY TO REACH OUT AND SUPPORT ITS HUMANITARIAN MISSION BY COMMITTING TO THE LEAD FOR THEIR HEARTS TO SERVE PEOPLE IN NEED AND STRENGTHEN OUR COMMUNITY.

SO, ON BEHALF OF THE MERCED COUNTY BOARD OF SUPERVISORS, THANK YOU VERY MUCH FOR ALL THAT YOU DO HERE IN OUR COMMUNITY. WE SEE IT AND WE RECOGNIZE IT. SO THANK YOU. THANK YOU SO MUCH. [APPLAUSE] OH, JUST.

YEAH, LIKE HE SAID. SURE. YEAH. JUST LIKE HE SAID.

KAMILA MUHAMMAD HAD TO RUN TO LOS BANOS FOR MEETINGS.

AND BECAUSE SHE'S OUR FEARLESS LEADER AND SHE'S THE ONE DOING THE WORK ALL EVERY MONTH, EVERY DAY, EVERY WEEK HERE TO KEEP EVERYBODY SAFE AND PREPARE.

YEAH. AND LIKE TO DULY NOTE SHE IS FROM DISTRICT THREE.

SO VERY GOOD. SO COME UP HERE. WE'LL GO TO GET A PICTURE.

THANK YOU, THANK YOU. APPRECIATE IT.

THANK YOU, THANK YOU, THANK YOU, I APPRECIATE THAT.

THANK YOU.

I'LL MOVE ON TO BOARD ACTION BEGINNING WITH PUBLIC WORKS.

[BOARD ACTION]

AT THIS TIME, I'LL OPEN UP THE PUBLIC COMMENT FOR PUBLIC WORKS.

WE'LL GO AHEAD AND CLOSE THAT PUBLIC COMMENT AND WE'LL ENTER.

IS THERE ANYTHING BACK HERE ON THE DAIS? I LOOK AROUND.

SEEING NONE, I'LL ENTERTAIN A MOTION. SO I HAVE A MOTION BY SUPERVISOR PACHECO, SECONDED BY SUPERVISOR PAREIRA. WE'LL CALL FOR THE VOTE.

[01:35:07]

ITEM NUMBER 16. ITEM 16. YES. THANK YOU. PUBLIC COMMENT PERIOD IS NOW CLOSED.

WE'LL BRING IT BACK TO THE DAIS IF THERE'S FURTHER DISCUSSION ON THIS ITEM. IF NOT, I'LL ENTERTAIN A MOTION.

I HAVE A MOTION BY SUPERVISOR SILVEIRA, SECONDED BY SUPERVISOR PEDROZO.

WE'LL GO AHEAD AND CALL FOR THE VOTE.

AM I MOVING TOO FAST? THERE WE GO. RECORD THE VOTE.

MOTION PASSES. NEXT WE HAVE HUMAN SERVICES AGENCY.

ITEM 17 AND 18. AT THIS TIME, OPEN UP PUBLIC COMMENT FOR ITEM 17 AND 18.

THE PUBLIC COMMENT PERIOD FOR HSA IS NOW CLOSED.

I'LL BRING IT BACK TO THE DAIS IF THERE'S FURTHER DISCUSSION. IF NOT, WHAT'S THE PLEASURE OF THE BOARD? I HAVE A MOTION BY SUPERVISOR PAREIRA SECONDED BY SUPERVISOR SILVEIRA.

WE'LL GO AHEAD AND CALL FOR THE VOTE. RECORD THE VOTE.

MOTION PASSES. NEXT, WE HAVE COMMUNITY AND ECONOMIC DEVELOPMENT.

ITEMS 19 THROUGH 21. AT THIS TIME, WATER RESOURCES MANAGER LACEY MCBRIDE COMMENTS ON 19 AND 21.

WHAT'S THAT? OKAY. YES, PLEASE. GOOD MORNING, MR. CHAIR AND MEMBERS OF THE BOARD.

THE ITEM PRESENTED. SORRY. MARK MIMMS, DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT.

THE ITEM PRESENTED FOR YOUR CONSIDERATION TODAY IS A CONTRACT WITH DB ECO NORTH AMERICA, INC.

FOR A FREIGHT RAIL STUDY FOR THE CASTLE COMMERCE CENTER INLAND PORT.

THE PURPOSE OF THE STUDY IS TO EVALUATE EXISTING AND PROJECTED FREIGHT DEMAND, ANALYZE REGIONAL AND NATIONAL GOODS MOVEMENT TRENDS, ASSESS INFRASTRUCTURE CAPACITY AND IDENTIFY OPPORTUNITIES TO SUPPORT RAIL SERVED INDUSTRIAL DEVELOPMENT AROUND, AT AND AROUND CASTLE COMMERCE CENTER. THE STUDY WILL ALSO EVALUATE POTENTIAL RAIL ALIGNMENTS, OPERATIONAL FEASIBILITY, MULTIMODAL CONNECTIVITY, AND INFRASTRUCTURE INVESTMENT STRATEGIES NEEDED TO SUPPORT LONG TERM FREIGHT MOBILITY AND ECONOMIC COMPETITIVENESS. DB ECO NORTH AMERICA WAS THE CONSULTANT SELECTED THROUGH A COMPETITIVE PROCUREMENT PROCESS TO IDENTIFY INFRASTRUCTURE PLANNING, GROWTH AND EXPANSION OPPORTUNITIES FOR THE CASTLE COMMERCE CENTER INLAND PORT.

THE STUDY, CONDUCTED THROUGH THE AGREEMENT IS INTEGRAL TO THE $49.6 MILLION GRANT AWARDED TO MERCED COUNTY FROM THE STATE'S PORT FREIGHT AND INFRASTRUCTURE PROGRAM, OR PFIP, AND WILL SERVE AS A FOUNDATION PLANNING DOCUMENT TO GUIDE DECISIONS AND SUPPORT FUTURE GRANT AND FINANCIAL OPPORTUNITIES. SHOULD THE BOARD APPROVE THE CONTRACT PRESENTED TODAY THE AGREEMENT WILL BE EFFECTIVE APRIL 1ST, 2026. THERE IS NO NET COST TO THE COUNTY GENERAL FUND, AS THE APPROPRIATIONS ARE INCLUDED IN THE DEPARTMENT'S CASTLE INLAND PORT BUDGET AND COSTS WILL BE OFFSET BY FUNDING THROUGH THE FEDERAL BUILD AMERICA BETTER OR BUREAU GRANT AWARD.

I'M HAPPY TO TAKE ANY QUESTIONS AT THIS TIME.

THANK YOU. THANK YOU. ARE THERE ANY QUESTIONS? I'D LIKE TO SAY THAT WHEN WE WERE IN WASHINGTON, D.C., THE LAST TIME THE FOLKS FROM BUILD AMERICA WERE VERY EXCITED TO TALK ABOUT THE GRANT THAT WE WERE AWARDED AND HOW THEY'RE EXCITED FOR US TO DO THIS STUDY.

IS THERE ANY OTHER QUESTIONS FOR MARK? IF NOT AT THIS TIME, THE WATER RESOURCES MANAGER, LACEY MCBRIDE WILL DO OUR WATER PRESENTATION. AND I SEE ADRIEL HERE AS WELL.

ADRIEL, NICE TO SEE YOU. IT'S BEEN A WHILE. GOOD MORNING, CHAIRMAN AND BOARD MEMBERS.

LACEY MCBRIDE, WATER RESOURCES MANAGER. THIS ITEM IS THE MERCED COUNTY DROUGHT RESILIENCE PLAN.

THIS PLAN WAS DEVELOPED IN RESPONSE TO THE STATE REQUIRED LEGISLATION.

OUR STATE PASSED LEGISLATION SB 552 THAT COUNTY'S ADOPT PLANS TO IMPROVE PREPAREDNESS FOR AND RESILIENCE TO DROUGHT FOR SELF-SUPPLIED GROUNDWATER COMMUNITIES SUCH AS DOMESTIC WELLS AND SMALL WATER SYSTEMS. THIS PLAN WAS FUNDED BY A CALIFORNIA DEPARTMENT OF WATER RESOURCES GRANT, AND IT HAS COME IN ON TIME AND UNDER BUDGET,

[01:40:02]

NOW, I'D LIKE TO TURN IT OVER TO ADRIEL RAMIREZ WITH ZANJERO, WHO WILL WALK THROUGH A BRIEF OVERVIEW OF THE DROUGHT RESILIENCE PLAN AND THE FIRST ANNUAL DROUGHT RISK ASSESSMENT. GOOD MORNING. GOOD MORNING.

LACEY ALREADY PROVIDED AN OVERVIEW OF THE ITEMS WE'LL BE DISCUSSING TODAY, BUT THE BROAD INTENT IS TO DISCUSS THE REQUIREMENTS THAT SB 552 IMPOSES ON COUNTIES.

HOW THE COUNTY'S DROUGHT PLAN ADDRESSES THOSE REQUIREMENTS AND THE ANNUAL RISK ASSESSMENT.

YOU CAN SEE HERE THE SB 552 REQUIREMENTS FOR COUNTIES.

AS LACY MENTIONED, THE COUNTY ALREADY HAS A DROUGHT TASK FORCE THAT HAS BEEN ACTIVE SINCE 2015.

THE REST OF THE COMPONENTS LISTED HERE ARE ADDRESSED IN THE PLAN.

IMPORTANTLY THE CONSIDERATION OF PROVIDING EMERGENCY DRINKING WATER SOLUTIONS AND MITIGATING DOMESTIC WELLS REQUIREMENTS IN THE PLAN. AND THESE ARE ACCOMPLISHED THROUGH PARTNERSHIPS WITH SELF-HELP ENTERPRISES AND LOCAL GSA'S.

SO THE FOCUS OF THE DROUGHT RESILIENCY PLAN AS LACEY MENTIONED ARE SELF SUPPLIED COMMUNITIES.

THIS GRAPHIC ILLUSTRATES THE VARIOUS DROUGHT PLANNING RESPONSIBILITIES IMPOSED ON SYSTEMS OF DIFFERENT SIZES.

STARTING ON THE LEFT, WE HAVE SYSTEMS WITH 3,000 OR MORE CONNECTIONS.

THIS WOULD BE AKIN TO THE CITY OF MERCED, WHO IS REQUIRED TO PRODUCE AN URBAN WATER MANAGEMENT PLAN AND AN ASSOCIATED WATER SHORTAGE CONTINGENCY PLAN.

MOVING DOWN THE LINE, WE GET INTO SYSTEMS SUCH AS THE COMMUNITY OF OR THE DOS PALOS WATER SYSTEM, OR BLACK RASCAL THAT FIT WITHIN THE NEXT TWO LINE ITEMS OVER, AND THEN OUR STATE SMALL WATER SYSTEMS AND RURAL DOMESTIC USERS.

SO AGAIN, THE DROUGHT PLAN OUTLINE. THE STRUCTURE IS DESIGNED TO MEET THE REQUIREMENTS OF SB 552.

AND CHAPTER FOUR SPECIFICALLY IS THE COUNTY'S ACTION PLAN.

IT DISCUSSES HOW THE COUNTY WILL EVALUATE RISK AND MONITOR IT ON AN ANNUAL BASIS, ITS RESPONSE STRATEGIES THAT IT MAY UNDERTAKE TO ADDRESS THAT RISK. AND THEN WHO IS RESPONSIBLE FOR IMPLEMENTING THE ACTION PLAN? SO BEFORE WE CAN ADEQUATELY RESPOND TO RISK, IT IS IMPORTANT TO BUILD AN UNDERSTANDING OF WHAT VULNERABILITIES ARE FACING THESE COMMUNITIES. SO SB 552 GUIDANCE REQUIRES THAT WE EVALUATE TOOLS PRODUCED BY THE STATE.

AND THAT IS WHAT WE'VE DONE HERE. THIS MAP HERE IS SHOWING THE FIVE GROUNDWATER BASINS WITHIN THE COUNTY, WHICH COVER 77% OF THE TOTAL AREA OF THE COUNTY.

THIS NEXT TOOL PROVIDED BY THE DEPARTMENT OF WATER RESOURCES IS A PHYSICAL VULNERABILITY TOOL THAT IS ASSESSING GEOLOGY, GROUNDWATER LEVEL CHANGE, OCCURRENCE OF DRY DOMESTIC WELLS, AND PROVIDING A DENSITY MAP AS TO WHERE THE OCCURRENCE OF THAT RISK IS SO HIGHEST RISK IN DARKER COLORS. LIGHTER RISK OR LESS RISK IN LIGHTER COLORS, AND WE CAN SEE THAT THE MAJORITY OF THE RISK IS LOCATED ALONG THE HIGHWAY 99 CORRIDOR, WHICH IS WHERE THE MAJORITY OF THE POPULATION LIVES.

AND ON THE WEST SIDE, ALONG THE I-5 AS WELL. NOW WE KNOW THAT NOT ONLY PHYSICAL OR PHYSICAL RISK IMPACT A COMMUNITY'S ABILITY TO RESPOND TO DROUGHT CONDITIONS, BUT THEY'RE ALSO SOCIAL IMPACTS AS WELL.

THINGS LIKE DEMOGRAPHICS OR AGE DEMOGRAPHICS OR LANGUAGE BARRIERS.

SO THAT IS WHAT IS MAPPED HERE AS WELL. NEXT TOOL THAT WE EVALUATED IS THE OCCURRENCE OF DRY WELLS.

SO THESE ARE SHOWING WHERE DRY WALLS ARE REPORTED.

AT ANY TIME A WELL GOES OUT BY A DRILLER OR A LANDOWNER.

AND THEN THIS LAST MAP IS SHOWING WHERE ALL THE WELLS WITHIN THE COUNTY THAT HAVE BEEN REPORTED THROUGH A WELL COMPLETION REPORT ARE LOCATED.

AFTER REVIEWING ALL OF THESE TOOLS AND MEETING WITH THE DROUGHT WORKING GROUP, WE RECOMMENDED THAT THE COUNTY WOULD BENEFIT FROM A TAILORED APPROACH THAT IT COULD CONDUCT EVERY YEAR TO ASSESS RISK GOING INTO THE NEXT YEAR.

SO THAT IS WHERE WE START TO SEE THE ANNUAL DROUGHT RISK ASSESSMENT BEGINS.

WE TAKE THE RESULTS FROM THAT, AND WE'LL GO OVER WHAT THAT IS IN A MINUTE AND DECLARE DROUGHT STAGE,

[01:45:02]

SO WE HAVE THREE DROUGHT STAGES RANGING FROM BASELINE ACTIONS KIND OF NO DROUGHT CONDITIONS, NO WELLS GOING DRY. GROUNDWATER LEVELS ARE STABLE.

MODERATE ACTIONS START TO WE'RE STARTING TO SEE KIND OF THE UPTICKS OF DROUGHT AND THEN YOUR SEVERE ACTIONS OR KIND OF WORST CASE SCENARIO.

GOING BACK TO THE IMPLEMENT OR THE ACTIONS THAT THE COUNTY CAN UNDERTAKE, WE'VE LISTED ACTIONS DEPENDING ON THE STAGE HERE.

AND THIS IS NOT AN EXHAUSTIVE LIST. THIS DOCUMENT IS DESIGNED TO BE UPDATED AND EVOLVE OVER TIME AND BE INTEGRATED INTO LOCAL HAZARD PLANS OR GENERAL PLAN UPDATES.

SO IT'S CERTAINLY SOMETHING THAT WE CAN UPDATE OVER TIME.

AND IMPORTANTLY, IT'S JUST DESIGNED NOT TO BE SO RIGID.

SO YOU COULD IMPLEMENT BASELINE ACTIONS AND CONDUCT ENHANCED MONITORING FOR EXAMPLE.

SO THE 2026 ANNUAL DROUGHT ASSESSMENT, WE TOOK GROUNDWATER ELEVATION CHANGE FROM FALL OF 2024 TO FALL OF 2025 AND MAPPED IT THROUGHOUT THE COUNTY. SO WE'RE SEEING AREAS IN GREEN SHOWING GROUNDWATER LEVELS STABLE OR INCREASING, AND THE MAJORITY OF THE COUNTY IS IN YELLOW WHERE WE'RE SEEING 0 TO 30 FOOT DECLINES.

WE ALSO MAPPED THE DRY WELL REPORTS TO SHOW WHERE POTENTIAL COMMUNITIES ARE EXPERIENCING ISSUES, AND THEN USE THE US DROUGHT MONITORING INDEX TO GIVE US A GAUGE AS TO WHAT ARE WE EXPECTING GOING INTO THIS SUMMER OR FALL.

WHEN WE START TO LAYER THE 2025 REPORTED DRY WELLS, WE SEE THAT THEY'RE GENERALLY OCCURRING IN SIMILAR LOCATIONS AND ESPECIALLY IN AREAS THAT WE HAVE OR IN TIMES WHERE WE HAVE EXTREME DROUGHTS, WE START TO SEE THE PREVIOUSLY REPORTED DRY WELLS HEAVILY MIRROR THE ACTUAL DRY WALLS THAT OCCUR IN THE YEAR WE'RE LOOKING TO FORECAST FOR.

SO GOING BACK TO WHAT THIS ALL MEANS FOR FOR THIS UPCOMING YEAR, WE'VE SEEN A MINIMAL INCREASE IN DRY WELL REPORTS GOING FROM 6 TO 8 IN 2025. GROUNDWATER CONDITIONS ARE EXPERIENCING SOME DECLINE AND THERE ARE NO DROUGHT INDICATIONS FOR THE US DROUGHT MONITORING INDEX. SO WE WOULD RECOMMEND THE COUNTY UNDERTAKE BASELINE ACTIONS WITH A FEW ACTIONS FROM THE MODERATE COMPONENT THAT INCLUDE COORDINATION WITH PARTNERS AND ENHANCED MONITORING IF CONDITIONS CONTINUE TO WORSEN.

I KNOW THERE WAS A LOT OF INFORMATION. I'M HAPPY TO ANSWER ANY QUESTIONS.

THANK YOU ADRIEL. IT'S EVEN THOUGH WE DO MISS YOU HERE AT MERCED COUNTY, IT'S NICE THAT YOU REPRESENT US UP IN SACRAMENTO.

SO THANK YOU FOR YOUR WORK. IS THERE ANY QUESTIONS FOR ADRIEL? AT THIS TIME? THEN I'LL OPEN IT UP FOR PUBLIC COMMENT FOR COMMUNITY AND ECONOMIC DEVELOPMENT ITEMS 19, 20 AND 21. OKAY.

GOOD MORNING. GOOD MORNING. BREANNE VANDENBERG, EXECUTIVE DIRECTOR, MERCED COUNTY FARM BUREAU.

SOMEHOW, I MANAGED TO BE ONE OF THE LUCKY 20 THAT SAT ON THE STAKEHOLDER COMMITTEE.

SO THANK YOU TO LACEY AND HER TEAM. BUT AS MUCH AS I DON'T LOVE TO SEE THE MAPS AND SEE WHERE THE SPOTS ARE OR THE DRY WELLS.

WE DO FIND IT'S IN COMPLIANCE WITH SENATE BILL 552.

AND YOUR ACTION TODAY WOULD CEMENT THAT. SO WE DO RECOMMEND OF THAT NATURE.

SO THANK YOU. THANK YOU. IF THERE'S NO MORE COMMENTS, I'LL GO AHEAD AND CLOSE THE PUBLIC COMMENT PERIOD ON THIS ITEM. CHAIR RECOGNIZES SUPERVISOR PAREIRA. THANK YOU, MR. CHAIR. JUST FOR THE PUBLIC BACK YOU KNOW, 2014, 2015, 2016 MERCED COUNTY WAS IN A LARGE OR A BIG DROUGHT.

AND I THINK SB 552 WAS KIND OF A RESPONSE BY THE LEGISLATOR IN 2021 TO MAKE SURE THAT PEOPLE WHOSE WELLS WERE GOING DRY WERE GETTING TAKEN CARE OF. THAT RESPONSIBILITY HAS BEEN TRANSFERRED NOW FROM THE COUNTY TO THE GSA'S.

AND SO TO SOME DEGREE AND THE GSA'S HAVE PUT TOGETHER FUNDING TO HELP WITH THAT.

SO, I MEAN, I THINK THIS IS IMPORTANT. IT'S GOOD TO KNOW.

BUT THE RESPONSIBILITY TO THE COUNTY HAS BEEN LESSENED BY THE GSP'S OF THE GROUNDWATER SUSTAINABILITY AGENCIES.

THANK YOU. THANK YOU. SEEING NO OTHER COMMENTS, I'LL GO AHEAD AND ENTERTAIN A MOTION.

I HAVE A MOTION BY SUPERVISOR PACHECO, SECONDED BY SUPERVISOR SILVEIRA.

LET'S CALL FOR THE VOTE. PLEASE RECORD THE VOTE.

MOTION PASSES. NEXT WE HAVE ELECTIONS. ITEMS 22 THROUGH 24.

[01:50:09]

WE'LL GO AHEAD AND CLOSE THE PUBLIC COMMENT PERIOD.

I'LL BRING IT BACK TO THE DAIS IF THERE'S FURTHER DISCUSSION HERE. IF NOT, I'LL CALL FOR A MOTION.

I HAVE A MOTION BY SUPERVISOR SILVEIRA, SECONDED BY SUPERVISOR PACHECO.

WE'LL CALL FOR THE VOTE. RECORD THE VOTE. MOTION PASSES.

NEXT, WE HAVE HUMAN RESOURCES. ITEM 25. AT THIS TIME, I'LL OPEN UP PUBLIC COMMENT FOR HUMAN RESOURCES.

ITEM NUMBER 25. SEEING NONE, WE'LL GO AHEAD AND CLOSE THE PUBLIC COMMENT PERIOD FOR THIS ITEM.

BRING IT BACK TO THE DAIS FOR FURTHER DISCUSSION.

IF NOT, I'LL ENTERTAIN A MOTION. I HAVE A MOTION BY SUPERVISOR SILVEIRA, SECONDED BY SUPERVISOR PEDROZO.

WE'LL CALL FOR THE VOTE. PLEASE RECORD THE VOTE.

MOTION PASSES. NEXT, WE HAVE COUNTY EXECUTIVE OFFICE.

ITEMS 26 AND 27. I'LL OPEN UP PUBLIC COMMENT FOR THESE ITEMS. WE'LL GO AHEAD AND CLOSE THE PUBLIC COMMENT PERIOD FOR THESE ITEMS. BRING IT BACK TO THE DAIS. CHAIR RECOGNIZES SUPERVISOR PEDROZO.

YES. THANK YOU, MR. CHAIR. I JUST WANTED TO ADD, WHEN THE LEGISLATIVE PLATFORM AT 2.2.8, IT SAYS THE UNIVERSITY OF CALIFORNIA, MERCED IN MERCED COUNTY HAVE PARTNERED IN SEVERAL AREAS TO BRING ECONOMIC DEVELOPMENT AND SOCIO ECONOMIC IMPROVEMENTS TO THE REGION. I THINK IT'S ONLY FITTING TO ADD MERCED COLLEGE IN THAT AS WELL, JUST TO HIGHLIGHT SO WE CAN BECAUSE THEY DO PROVIDE, YOU KNOW, A LOT OF SERVICES AND WE WORK WITH THEM PRETTY WELL AS WELL. WOULD THAT BE A PART OF YOUR MOTION? YES, THAT'S PART OF MY MOTION. DULY RECOGNIZED.

IS THERE A, SO WE'LL GO AHEAD AND HAVE YOU DO THE MOTION WHEN IT COMES UP.

OKAY, I HAVE A MOTION BY SUPERVISOR PEDROZO SECONDED BY SUPERVISOR PAREIRA.

WE'LL GO AHEAD AND CALL FOR THE VOTE. RECORD THE VOTE.

MOTION PASSES UNANIMOUSLY. NEXT, WE HAVE BOARD OF SUPERVISORS AT THIS.

ITEMS 28 AND 29. WE'LL GO AHEAD AND OPEN UP THE PUBLIC COMMENT PERIOD FOR THESE ITEMS. WE'LL GO AHEAD AND CLOSE THE PUBLIC COMMENT PERIOD FOR THESE ITEMS. BRING IT BACK TO THE DAIS. AND SUPERVISOR, THE CHAIR RECOGNIZES SUPERVISOR SILVEIRA.

THANK YOU, MR. CHAIR. BOTH THESE ITEMS 28 AND 29 ARE ITEMS THAT I'VE BROUGHT FORWARD.

TO HIGHLIGHT THE FIRST ONE IN WORKING WITH OUR ASSESSOR CLERK, RECORDER MATT MAY'S OFFICE.

THIS $13,000 IS TO GO BUY EQUIPMENT AND WE'RE GOING TO BE SOON ROLLING OUT AT LEAST A PILOT PROGRAM AND MAYBE HOPEFULLY IT BECOMES MORE.

AT LEAST ONE DAY A MONTH. IT'LL BE LOCATED AT THE SPRING FAIRGROUNDS.

WE'LL HAVE HOURS SO THAT FOLKS THAT ARE COMING OVER FOR SOME OF THE BASIC SERVICES THAT YOU WOULD HAVE TO DRIVE TO MERCED FOR IN THE RECORDER'S OFFICE, SUCH AS MARRIAGE LICENSE, BIRTH CERTIFICATES, DEATH CERTIFICATES WE'LL WORK WITH OUR CITY PARTNERS TO HIGHLIGHT THAT AND PUT THAT OUT THERE FOR FOLKS THAT YOU DON'T HAVE TO MAKE. IF IT'S SOMETHING YOU DON'T NEED AN EMERGENCY AND YOU CAN PLAN FOR IT. YOU'RE ABLE TO BE ABLE TO UTILIZE THOSE SERVICES ON THE WEST SIDE AND NOT HAVING TO DRIVE ALL THE WAY ACROSS THE COUNTY. SO I WANT TO THANK MATT AND HIS TEAM, PHILIP, FOR MOVING FORWARD ON THAT. AND THEY'RE STILL WORKING OUT SOME DETAILS ON IT, BUT WE DIDN'T WANT THAT TO BE THE BARRIER BECAUSE SOME OF THIS STUFF, YOU JUST DON'T GO DOWN TO THE OFFICE SUPPLY PLACE AND ARE ABLE TO BUY IT SPECIALIZED EQUIPMENT.

SO THANK YOU FOR THAT. AND THEN ALSO THE SECOND ITEM IS THAT THE FIRE STATION AT DOS PALOS WYE, WHO SHARES A PARKING LOT WITH THE SERVICE CLUB.

THERE'S ALWAYS CHALLENGES WITH THE LIGHTS THERE. THEY'RE THE OLD SODIUM VAPOR, LITTLE LIGHTS THAT TEND TO NOT LAST VERY LONG.

AND SO AN UPGRADE PROJECT FOR THAT, THAT HELPS TO NOT ONLY SERVICE THE FIRE STATION AND THEIR SECURITY NEEDS, BUT ALSO THE PARKING LOT THAT THEY SHARE WITH THE NEIGHBORS.

AND I WOULD ENCOURAGE MY COLLEAGUES TO VOTE YES ON THESE ITEMS. THANK YOU, MR. CHAIR. THANK YOU.

SUPERVISOR. SO WE'LL GO AHEAD AND ENTERTAIN A MOTION.

I HAVE A MOTION BY SUPERVISOR SILVEIRA, SECONDED BY SUPERVISOR PEDROZO.

LET'S GO AHEAD AND CALL FOR THE VOTE. RECORD THE VOTE.

GOOD UTILIZATION OF YOUR DISCRETIONARY DOLLARS SUPERVISOR.

NEXT WE HAVE BOARD APPOINTMENTS. ITEMS 30 AND 31.

[01:55:01]

WE'LL GO AHEAD AND CLOSE THE PUBLIC COMMENT PERIOD.

WE'LL BRING IT BACK TO THE DAIS IF THERE'S FURTHER DISCUSSION. IF NOT, I'LL ENTERTAIN A MOTION.

I HAVE A MOTION BY SUPERVISOR PEDROZO SECONDED BY SUPERVISOR PAREIRA.

AT THIS TIME, WE'LL CALL FOR THE VOTE. RECORD THE VOTE.

MOTION PASSES. NEXT WE HAVE BOARD INFORMATION AND POSSIBLE ACTION.

[BOARD INFORMATION & POSSIBLE ACTION]

CHAIRMAN MCDANIEL, MEMBERS OF THE BOARD, CEO HENDRICKSON AND COUNTY COUNSEL HANSEN.

GOOD MORNING. TODAY I HAVE THE HONOR OF PROVIDING AN UPDATE REGARDING THE 2025-28 MERCED COUNTY STRATEGIC PLAN.

THE STRATEGIC PLAN SERVES AS A ROADMAP FOR ALIGNING COUNTY PRIORITIES, RESOURCES AND OPERATIONS OVER THE NEXT FOUR YEARS.

IT FOCUSES ON FIVE KEY STRATEGIC AREAS, CUSTOMER SERVICE, FISCAL DISCIPLINE, QUALITY OF LIFE.

REVENUE ENHANCEMENTS AND ENHANCED INFRASTRUCTURE.

CURRENTLY, 22% OF THE PLAN'S TACTICS HAVE BEEN COMPLETED AND THE REMAINING TACTICS ARE OR IN ACTIVE IMPLEMENTATION OR IN THE PLANNING PHASE. OVER THE PAST QUARTER, SEVERAL KEY TACTICS HAVE BEEN ADVANCED.

WITHIN CUSTOMER SERVICE DEPARTMENTS HAVE EXPANDED FEEDBACK MECHANISMS, INCLUDING SURVEYS AND OUTREACH TOOLS TO EVALUATE SERVICE DELIVERY AND RESPOND EFFECTIVELY TO COMMUNITY NEEDS. UNDER FISCAL DISCIPLINE, DEPARTMENTS CONTINUE TO STRENGTHEN FINANCIAL PRACTICES BY REVIEWING PROCUREMENT CONTROLS AND EVALUATING VENDOR CONTRACTS TO ELIMINATE DUPLICATION AND IMPROVE EFFICIENCIES.

TODAY'S MID-YEAR BUDGET PRESENTATION AND THE HR 1 PRESENTATION ARE EXAMPLES OF THE COMMITMENT OF THIS BOARD TO FISCAL DISCIPLINE.

WITHIN QUALITY OF LIFE DEPARTMENTS CONTINUE ADVANCING INITIATIVES THAT ADDRESS HOMELESSNESS, EXPAND VICTIM SERVICES AND STRENGTHEN COMMUNITY OUTREACH.

THE COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY HAS BEEN COMPLETED, AND THE BEHAVIORAL HEALTH MOBILE CRISIS RESPONSE TEAM NOW PROVIDES SERVICES 24 HOURS A DAY, SEVEN DAYS A WEEK. UNDER REVENUE ENHANCEMENT THE COUNTY CONTINUES TO PURSUE OPPORTUNITIES TO STRENGTHEN LONG TERM FINANCIAL SUSTAINABILITY.

THE COUNTY EXECUTIVE OFFICE HAS INITIATED A COUNTYWIDE USER FEE STUDY TO ENSURE DISCRETIONARY SERVICES ARE APPROPRIATELY FUNDED.

IN ADDITION, RECENT LEASE ACTIVITY AT CASTLE COMMERCE CENTER IS GENERATING NEW REVENUE FOR THE CASTLE ENTERPRISE FUND.

FINALLY, UNDER ENHANCED INFRASTRUCTURE, DEPARTMENTS ARE ADVANCING SEVERAL IMPORTANT PROJECTS.

ONE SIGNIFICANT MILESTONE OCCURRED ON MARCH 3RD, WHEN THIS BOARD APPROVED THE ISSUANCE OF UP TO $35 MILLION IN ROAD BONDS, BACKED BY MEASURE V SALES TAX REVENUE. THIS WILL IMPROVE SAFETY AND MOBILITY FOR RESIDENTS WHILE NOT INCREASING TAXES AS THE BONDS WILL BE REPAID USING FUTURE MEASURE V REVENUE. OVERALL, THIS REPORT REFLECTS STEADY PROGRESS WITH THE BOARD'S STRATEGIC PRIORITIES.

STAFF WILL CONTINUE PROVIDING QUARTERLY UPDATES SO THE BOARD AND THE PUBLIC CAN TRACK IMPLEMENTATION AND OUTCOMES.

AND IN CLOSING, I'D LIKE TO TAKE JUST A BRIEF MOMENT TO INVITE THE COMMUNITY, TO THE INAUGURAL STATE OF THE COUNTY EVENT THIS FRIDAY AT 10 A.M.

AT THE MERCED THEATER. THIS EVENT FURTHER CEMENTS THE INCREASED AND ENHANCED EFFORTS TO PROVIDE INFORMATION TO THE COMMUNITY.

THIS CONCLUDES THE REPORT. OUR DEPARTMENT HEADS AND I'D BE HAPPY TO ANSWER ANY QUESTIONS OF THIS BOARD.

THANK YOU DAVID. I APPRECIATE THE CONTINUOUS UPDATE ON THE STRATEGIC PLAN, BECAUSE WE SPENT A LOT OF TIME TO PUT THIS TOGETHER AND WE AND I LIKE THE CHECK INS.

CHAIR RECOGNIZES THE SUPERVISOR PAREIRA. THANK YOU, MR. CHAIR. ONE OF THE ITEMS THAT THAT'S ON HERE, THAT'S IT'S DEAR TO MY HEART IS THE CUSTOMER SERVICE PART.

AND, WE REALLY HAVE COMPLETED A LOT OF THE TASKS THAT WE SET OUT TO DO, WHICH I CERTAINLY APPRECIATE.

SO ONE THAT WE HAVEN'T THAT I'VE REQUESTED IS TO HAVE A, TO HAVE A, YOU KNOW, A SMILEY FACE, SAD FACE. IT CAN BE THAT SIMPLE AT THE DOOR. AND AND I WOULD LIKE THAT TO STILL BE FOCUSED ON OR BE A TASK THAT WE TRY TO COMPLETE.

AND THEN SECONDLY IS AND I REALLY APPRECIATE THE CEO WORKING TO GET YOU KNOW, YOUR, VOICE MATTERS ON OUR WEBSITE. I WOULD LIKE TO SEE US PUT, DO A I GUESS LIKE A SOCIAL MEDIA PUSH MAYBE A COUPLE TIMES A MONTH WITH A DIRECT LINK TO THAT. SO THAT OUR CONSTITUENTS REALIZE IT IS THERE.

I THINK THERE'S STILL A SHORTAGE OF USAGE OF IT.

SO ANYWAYS, BUT OTHER THAN THAT, GREAT JOB AND REALLY APPRECIATE ALL THE EFFORT THAT THAT YOU'VE PUT INTO THIS.

[02:00:07]

IF NOT, WE'LL GO AHEAD AND CLOSE THE COMMENT PERIOD.

BRING IT BACK TO THE DAIS. ARE THERE FURTHER COMMENTS? IF NOT, I'LL ENTERTAIN A MOTION.

OKAY. I HAVE A MOTION BY SUPERVISOR SILVEIRA, SECONDED BY SUPERVISOR PEDROZO.

THIS TIME, LET'S CALL FOR THE VOTE. RECORD THE VOTE.

INFORMATION ACCEPTED. NEXT, WE HAVE A SCHEDULED ITEM, A PUBLIC HEARING, AS SUBMITTED BY HUMAN SERVICES AGENCY.

[SCHEDULED ITEMS]

AT THIS TIME, HUMAN SERVICES AGENCY DIRECTOR JOHN CHECKLEY WILL PROVIDE INFORMATION REGARDING THIS ITEM.

HOW ARE YOU DOING, JOHN? DOING WELL, SUPERVISOR MCDANIEL.

AND GOOD AFTERNOON, CHAIR MCDANIEL, MEMBERS OF THE BOARD OF SUPERVISORS.

JOHN CHECKLEY, DIRECTOR OF THE MERCED COUNTY HUMAN SERVICE AGENCY, TO SPEAK ON THE CLOSEOUT MERCED COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT FOR PUBLIC SUBSISTENCE PAYMENTS. AS THE BOARD IS AWARE, THE PURPOSE OF THE CDBG PROGRAM IS TO HELP DEVELOP VIABLE COMMUNITIES BY PROVIDING DECENT AND AFFORDABLE HOUSING AND IMPROVING LIVING CONDITIONS AND EXPANDING ECONOMIC OPPORTUNITIES.

ALL ACTIVITIES FUNDED UNDER THIS PROGRAM MUST MEET ONE OF THE NATIONAL OBJECTIVES, INCLUDING BENEFITING LOW AND MODERATE INCOME INDIVIDUALS, ELIMINATING BLIGHT OR MEETING URGENT COMMUNITY NEEDS.

I WANT TO ACKNOWLEDGE THE IMPACT THIS PROGRAM HAS HAD IN MERCED COUNTY.

THROUGH THESE FUNDS, 199 UNDUPLICATED INDIVIDUALS WERE ASSISTED.

THIS ASSISTANCE INCLUDED MORE THAN 303,000 IN DIRECT RENTAL ASSISTANCE PAYMENTS AND OVER 22,000 IN UTILITY ASSISTANCE IN SUPPORT FOR INCOME ELIGIBLE HOUSEHOLDS. THESE RESOURCES WERE DESIGNED TO HELP STABILIZE FAMILIES IN THEIR HOUSING AND WERE MODELED AFTER THE COVID EMERGENCY RENTAL ASSISTANCE PROGRAM THAT REALLY HELPED STABILIZE AND IMPACT THE COMMUNITY DURING THOSE DIFFICULT TIMES.

WE'VE SEEN A RENTAL AND UTILITY PAYMENTS JUST, YOU KNOW, INCREASE OVER THE LAST TEN YEARS TO WHERE IT HAS BECOME DIFFICULT FOR THE COMMUNITY TO MAINTAIN THAT HOUSING. THE PROGRAM HAS NOW BEEN FULLY EXPANDED AND OPERATIONALLY ENDED, AND AS REQUIRED BY THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT, THE COUNTY MUST COMPLETE AND SUBMIT THE FULL CLOSEOUT PACKAGE WITH AUTHORIZATION FROM THE DESIGNATED REPRESENTATIVE IDENTIFIED IN THE GOVERNING RESOLUTION, WHICH IS THE CHAIR OF THE BOARD.

DISCLOSE THAT ITEM DIRECTLY ALIGNS WITH THE 25-28 MERCED COUNTY STRATEGIC PLAN, PARTICULARLY THE STRATEGIC FOCUS ON QUALITY OF LIFE BY PROVIDING CRITICAL HOUSING RELATED RESOURCES.

IN CLOSING, I RESPECTFULLY PRESENT AND RECOMMENDED ACTIONS BEFORE YOU TODAY TO OPEN THE PUBLIC HEARING AND ACCEPT PUBLIC COMMENT.

CLOSE THE PUBLIC HEARING. AUTHORIZE THE BOARD CHAIR TO EXECUTE AN ACT ON THE COUNTY'S BEHALF IN ALL MATTERS PERTAINING TO THE CLOSEOUT OF THIS PROGRAM, AND AUTHORIZE THE DIRECTOR OF THE HUMAN SERVICE AGENCY TO SUBMIT THE CLOSEOUT DOCUMENTS TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT. STAFF ARE AVAILABLE FOR ANY QUESTIONS. THANK YOU FOR YOUR TIME AND CONSIDERATION.

THANK YOU. ARE THERE ANY QUESTIONS? IF NOT, I'LL GO AHEAD AND OPEN UP THE PUBLIC HEARING AT THIS TIME.

WE'LL GO AHEAD AND CLOSE OUT THE PUBLIC HEARING. WE'LL BRING IT BACK TO THE DAIS. ARE THERE FURTHER DISCUSSIONS. IF NOT, I'LL ENTERTAIN A MOTION. MR. CHAIRMAN. OH, HOLD ON HERE.

CHAIR RECOGNIZES SUPERVISOR PEDROZO. THANK YOU.

I'LL MAKE THE MOTION TO AUTHORIZE THE BOARD CHAIR TO EXECUTE AND TO ACT ON THE COUNTY'S BEHALF IN ALL MATTERS PERTAINING TO THE CLOSEOUT OF THIS PROGRAM, AND ALSO AUTHORIZE THE DIRECTOR OF THE HUMAN SERVICES AGENCY TO SUBMIT CLOSEOUT DOCUMENTS TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT.

OKAY. I HAVE A MOTION ON THE FLOOR. AND A SECOND, IS THERE FURTHER DISCUSSION ON THIS ITEM? IF NOT, I WILL CALL FOR THE VOTE. [INAUDIBLE] OH, MOTION PASSES UNANIMOUSLY.

I DIDN'T KNOW IF WE WERE DOING ON THE VOTING OR NOT. IT'S. LAST IS BOARD REPORTS.

[REPORTS/BOARD DIRECTION]

YOU KNOW WHAT? I'M GOING TO USE THE CHAIR'S DECISION MAKING.

WE'LL START WITH SUPERVISOR PACHECO. PRESSURE'S ON YOU.

[02:05:09]

FIRST, I'LL SAY CONGRATULATIONS TO LUPE CISNEROS ON HER APPOINTMENT.

LOOKING FORWARD TO WORKING WITH HER. AND THAT IN THE HEALTH DEPARTMENT.

AND JUST REAL QUICK, TOO, I MET WITH GOLDEN VALLEY HEALTH CENTERS.

WE'RE GOING TO, THEY'RE GOING TO REMODEL, ACTUALLY, THEY'RE GOING TO REBUILD THE PLANADA HEALTH CLINIC.

IT'S GOING TO BE CLOSED FOR ABOUT A YEAR. THEY HAVE A PRETTY AGGRESSIVE PLAN OF DEMOLITION TO BUILD.

IT SHOULD BE UP AND GOING BY JUNE OF NEXT YEAR.

THERE WILL BE SOME LIMITED SERVICE THERE, BUT THEY'RE PUTTING A PLAN TOGETHER TO MAKE SURE THAT THE PLANADA RESIDENTS WILL STILL RECEIVE SOME SERVICES. BUT TO LOOK AT THE PLANS, IT'S GOING TO BE BRAND NEW BUILDING BETTER OPERATIONS, BETTER PARKING.

SO IT'LL BE A GOOD THING FOR PLANADA. AND JUST REMIND EVERYBODY TO ATTEND THE STATE OF THE COUNTY ON FRIDAY THE 20TH.

AND THAT'S ALL I HAVE. CHAIR. VERY GOOD. THANK YOU.

VERY GOOD. THANK YOU. SUPERVISOR PEDROZO. THANK YOU.

YEAH, LAST WEEK I HAD A NEIGHBORHOOD MEETING.

AND I WANTED TO THANK LIEUTENANT RAY FRAMSTAD.

EXCUSE ME AND GINA LOPEZ FOR ATTENDING. IT HAD TO DO WITH FROM OUR FIRST MEETING, THE STRAY CAT ISSUE AND SOME CODE ENFORCEMENT STUFF.

SO I REALLY WANTED TO SAY THANK YOU TO THEM FOR THEM TAKING THE TIME TO COME AND DO THAT.

ALSO LAST WEEK WE HAD AN HSR LOBBY DAY IN SACRAMENTO WITH OUR PARTNERS FROM THE CITY AND MCAG.

THIS INDIGENT HEALTH CARE IS SOMETHING THAT, YOU KNOW, WE MET LAST WEEK ABOUT IT WITH DOCTOR SULLIVAN.

AND I BELIEVE IT'S LUMIRA FORMERLY LIVINGSTON COMMUNITY HEALTH TO TALK ABOUT SOME OF THE ISSUES THAT WE'RE FACING AND POTENTIALLY GOING TO FACE.

I ALSO HAD AN OPPORTUNITY TO GO TO THE PRESENT A CERTIFICATE TO THE HOLA CAFECITO RIBBON CUTTING.

AND USUALLY I'M PROMOTING, YOU KNOW, MY SON'S INVOLVEMENT IN THE ARTS, BUT I'M GOING TO GO AHEAD AND PROMOTE MINE.

I'VE BEEN IN I'M IN A PLAY, WHICH IS SOMETHING THAT'S KIND OF WEIRD BECAUSE I'VE NEVER DONE ANYTHING LIKE THIS BEFORE, BUT THEY ASKED ME TO DO IT AND SO I'M DOING IT.

AND SO IF YOU WANT TO SEE ME POORLY, EXECUTE AN ENGLISH ACCENT.

STARTING FRIDAY, SATURDAY, SUNDAY, AND THEN NEXT THURSDAY, FRIDAY OR I'M SORRY.

YEAH. NEXT THURSDAY, FRIDAY, SATURDAY AT THE MAC.

THE PLAY IS AND THEN THERE WERE NONE. SO IT'S A MURDER MYSTERY TYPE THING.

SO IF YOU SEE HIM TALKING TO HIMSELF IN HIS TRUCK WHILE HE'S DRIVING AROUND TOWN, YOU KNOW, HE'S PRACTICING HIS.

YES, I VERY MUCH AM. SUPERVISOR PAREIRA. THANK YOU, MISTER CHAIR.

FIRST, I'D LIKE TO THANK LUPE FOR AND CONGRATULATE HER ON JOINING THE PUBLIC HEALTH DEPUTY POSITION.

AND I SEE SHE'S ALREADY BACK IN THE OFFICE WORKING.

SO THAT'S WONDERFUL. IT SHOWS YOU HER DEDICATION TO OUR COUNTY.

I WANT TO MENTION THAT SENATOR CABALLERO HAS A BILL, SB 1108 IN SACRAMENTO.

IT IS THE ESTABLISHMENT OF A WILDLIFE CONSERVANCY KIND OF BASICALLY ALONG SANDY MUSH ROAD AS THE CENTER OF IT.

IT'S GOING TO RUN FROM A COUNTY LINE OUT NEAR GUSTINE TO, YOU KNOW, BASICALLY FROM THE COASTAL MOUNTAINS TO THE SIERRA MOUNTAINS.

IF YOU OWN PROPERTY IN THIS CORRIDOR, I SUGGEST YOU, YOU PAY ATTENTION, FIGURE OUT WHAT'S GOING TO HAPPEN FROM A GSA STANDPOINT.

WE LIKE THIS. IT'S, REALLY A WILDLIFE CORRIDOR.

IT'S GOING TO HELP GIVE AN OFF RAMP TO FOLKS WHO NEED A FALLOW GROUND AS A PART OF NOT HAVING ENOUGH WATER TO IRRIGATE.

SO I THINK THERE'S SOME BENEFICIAL PARTS OF THIS BILL.

HOWEVER, WE HAVE THE ABILITY TO KIND OF SHAPE IT.

AND SO IF YOU'RE INTERESTED, PLEASE REACH OUT TO MYSELF.

SUPERVISOR PACHECO OR OUR COUNTY WATER MANAGER, LACEY MCBRIDE.

AND WE'LL TRY TO FACILITATE CONVERSATIONS. I'D ALSO ONE ITEM THAT WAS ON OUR AGENDA TODAY THAT WE KIND OF SKIPPED OVER BECAUSE WE HAVE A LUNCHEON TO GET TO, BUT I DON'T WANT TO PASS THIS UP.

CAL FIRE, WE JUST APPROVED A LEASE WITH THEM.

IT'S $112,000 A MONTH FOR SOME PROPERTY AND BUILDINGS AT CASTLE.

A VERY SIGNIFICANT EVENT IN MY OPINION, TO BRING JOBS.

AND SUPERVISOR MCDANIEL HAS BEEN WORKING ON THIS.

AND I GUESS YOU MAY BE MENTIONING IT, BUT I DIDN'T WANT TO GO WITHOUT THAT, SO THANK YOU.

SUPERVISOR SILVEIRA. MINE. I GOT A LOT, BUT I'M GOING TO GO FAST.

LUPE, WELCOME TO THE TEAM. APPRECIATE YOU. VANESSA AND THE WHOLE BUDGET TEAM, THEY'RE ALL HERE.

I WANT TO THANK YOU GUYS FOR THE WORK THAT YOU'RE DOING AND GETTING THAT INFORMATION, SYNTHESIZING IT, AND THEN GETTING IT BACK TO US IN A FORM THAT WE CAN UNDERSTAND VERY MUCH APPRECIATIVE. THIS PAST WEEK I WAS IN SAN BERNARDINO COUNTY FOR A CSAC EXECUTIVE COMMITTEE MEETING, AS WELL AS THEY HAVE A REGIONAL MEETING THAT KIND OF FELL AT THE SAME PERIOD OF TIME.

[02:10:03]

YEAH. SO GOOD, GOOD ON THEM. AND THEN THIS LAST WEEK I ENTERED I WENT TO A COUPLE THINGS.

ONE, THE CITY OF LOS BANOS HAD THEIR 39TH DAY ARBOR DAY CELEBRATION.

A LOT OF AWARDEES, THE LITTLE ONES, GET TO DO PICTURES AND THEY GET AWARDS FOR THOSE.

SO THAT WAS REALLY COOL TO BE A PART OF. AND A FIRST FOR ME OUT IN THE MIDWAY AREA IN DOS PALOS, I WENT TO A RIBBON CUTTING FOR A STOP SIGN. SO THE FOLKS OUT THERE HAD REACHED OUT TO ME AND WERE VERY CONCERNED ABOUT A THREE WAY STOP ON CHRISTIAN AVENUE AND ELI.

ELI IS THE STREET THAT GOES INTO THE SUBDIVISION THERE A LOT OF FOLKS COMING AT, YOU KNOW, HIGHWAYS, NOT HIGHWAY SPEED, GOING FULL SPEED AND TURNING INTO THAT SUBDIVISION.

AND IT CAUSED A LOT OF CONCERN FOR THE RESIDENTS BECAUSE KIDS DON'T ALWAYS PAY ATTENTION IF CARS ARE COMING.

SO THEY'RE SO EXCITED ABOUT IT THAT WE DID A RIBBON CUTTING FOR A STOP SIGN.

AND THAT WAS A FIRST FOR ME. AND HOPEFULLY WE'LL GET TO DO SOME MORE OF THOSE.

AND THEN LASTLY, I JUST REMIND EVERYBODY AGAIN, THE STATE OF THE COUNTY IS THIS FRIDAY HERE IN MERCED.

I HOPE TO SEE YOU THERE. THANK YOU, MR. CHAIR. VERY GOOD, COUNTY COUNSEL.

NOTHING POLICY COUNCIL VALLEY VOICE TRIP IN SACRAMENTO.

ALSO, SUPERVISOR SILVEIRA AND I MET WITH PROSPECTIVE INVESTORS EXPLORING OPPORTUNITIES HERE IN MERCED COUNTY WHICH WAS VERY GOOD.

THEY WERE LOOKING FOR MERCED COUNTY. THEY WANTED TO DO SOMETHING HERE.

AND THAT WAS REALLY GOOD. WE ALSO HAD, I HAD TO ATTEND THE WORKFORCE DEVELOPMENT EXECUTIVE BOARD MEETING AS WELL AS US RECEIVING A BRIEFING.

IT'S GOING TO BE INTERESTING CONVERSATIONS COMING DOWN THE ROAD TRYING TO FIGURE OUT THE FUNDING FOR THAT. I WANT TO THANK AMR FOR THE TOWN HALL AND ATWATER AT THE VETERANS MEMORIAL BUILDING. CHECK OUT KYOS. I WAS ON THE INTERVIEW.

IT'LL BE REPLAYED NEXT SATURDAY MORNING. AND WITH THAT I'D LIKE TO ANNOUNCE THAT MERCED COUNTY BE HAVING THEIR SPECIAL MEETING ON FRIDAY, MARCH 20, 2026 AT 10 A.M.

AT THE MERCED THEATER DOWNTOWN, 301 WEST MAIN STREET, WHERE WE'LL BE GIVING OUR STATE OF THE COUNTY ADDRESS.

THERE'LL BE AN INTERESTING DISCUSSION THERE AS WELL AS WE'LL BE EXPLORING A LITTLE MORE ON THE ON THE HR 1 BILL AS WELL.

OUR NEXT REGULAR SCHEDULED BOARD MEETING WAS HELD AT 10 A.M.

TUESDAY, APRIL 7TH. THIS CONCLUDES OUR BOARD OF SUPERVISORS MEETING FOR MARCH 17, 2026.

MEETING ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.