Monterey County faces steep multi‑year budget shortfall; officials present cuts, vacancies and Measure AA choices

Monterey County budget officials on April 7 presented a three‑year general‑fund forecast showing a large shortfall driven by wage and benefit increases, escalating jail medical expenses, and reductions in some one‑time or external funding streams.

The budget workshop, led by the CEO and county budget staff, quantified baseline obligations for FY2026‑27 and outlined a projected shortfall that, if all vacant positions were filled, would reach roughly $118.9 million in FY2026‑27 and remain materially negative in the following years. The county’s recommended (CEO) budget narrows exposures by prioritizing status‑quo filled positions and making targeted restorations, but a gap of remaining augmentation requests (roughly $15.8M in the staff presentation) remains.

Key drivers and departmental asks
• Labor and wages: County staff said salary adjustments, wage‑study increases and other negotiated raises contribute more than $12M of the baseline obligations. Several departments said earlier negotiated wage patterns (timing of increases) have concentrated costs into shorter windows, increasing near‑term pressure.
• Jail medical: County budgeters flagged a roughly $8.6M increase in jail medical costs as a major structural pressure that cannot be absorbed without cuts or new revenues.
•Vacancies and right‑sizing: County staff urged vacancy management and working with departments to identify positions that can remain unfilled or reallocated; many departments also requested funding to restore vacant but mission‑critical roles (assessor, auditor‑controller, health, social services, public works, sheriff, probation, DA and others).
•Measure AA: The new local Measure AA sales tax (unincorporated areas) is being discussed as a partial source to carry ongoing costs; county staff presented options for applying roughly $10.5M of AA‑eligible items into the recommended budget but supervisors argued for clearer policy guidance and limits before locking ongoing operations to the new tax.

Department highlights
• Health: Officials warned that HR1 federal changes could cause tens of thousands of Californians to lose coverage and asked for outreach funding and local mitigation strategies.
• Social services: County leaders described administrative cost shifts and requested funding for eligibility workers and two IHSS social workers to reduce long backlogs that imperil vulnerable clients.
• Public safety: Sheriff, DA, probation and public defender described staff shortages and public‑safety implications; the sheriff proposed a mix of baseline restorations (records staff) and one‑time AA‑eligible investments (camera network expansion, aircraft and drone upgrades, evidence locker replacement).
•Public works and parks: Director Randy Isi presented 24 augmentation requests (critical maintenance contracts, parks staffing, vegetation/fuel management, facility unscheduled work), emphasizing deferred‑maintenance risks.

Public and school district reaction
The Selenas Union High School District urged preservation of campus‑based probation officers; district leaders offered to fully fund six positions for the coming year while longer‑term arrangements are developed. Community members also urged the board to protect Natividad and to sustain health outreach and nonprofit programs.

What supervisors asked for
Supervisors pressed the CAO and budget staff for (1) options to manage vacancies across departments, (2) a transparent policy or set of guidelines for how Measure AA funds will be used (many supervisors asked for a clear allocation framework and limits), and (3) clearer lists of prioritized augmentations the board should consider.

Next steps
County staff will incorporate board direction, pursue vacancy analysis and bring more detailed options for funding gaps and Measure AA allocation to the board as the May budget revise and June adoption process approaches.

Sources: Monterey County CEO and budget presentations and department testimony at the April 7, 2026 budget workshop.