San Mateo County adopts $6.21 billion revised FY26–27 budget, flags $1 billion VLF risk

The San Mateo County Board of Supervisors on Sept. 29 approved a set of four resolutions adopting revised expenditures, financing and an amended master salary resolution for fiscal year 2026–27, increasing the county's all‑funds budget to about $6.21 billion.

County Chief Financial Officer Roberto Mankia told the board the September revisions add roughly $983 million — largely carryover and one‑time funding for capital projects, property acquisitions, workforce housing and Measure K rollovers — and leave the county with a general fund of about $4.6 billion. "At stake really is everything we do and the services that we provide," Mankia said, warning of the exposure if the vehicle‑license‑fee (VLF) shortfall is not resolved.

The package included funding for capital projects (about $793 million of capital fully funded), $50 million for workforce housing, Coastside projects including $35 million for El Granada, and rollovers in housing and homeless funds. The package also includes a $22 million one‑time infusion to help restore the sheriff's reserves after a budget deficit largely attributed to overtime.

Board members pressed staff on specifics: the sheriff's $16 million operating shortfall (primarily overtime), lease exits for Health Administration, and the budget impacts of state changes described as "HR 1." Mankia said departments were directed to remain within their envelopes and that three net positions were added countywide.

The motion to adopt the four budget items — revised expenditures, financing, the appropriation limit and amendment to master salary resolution No. 081316 — passed on a roll call vote with all five supervisors voting yes.

What happens next: staff will implement the appropriations and return with any required technical adjustments; supervisors said they would continue to monitor VLF negotiations with the state and departmental budget performance.