Stockton, CA – San Joaquin County has released a proposed $2.8 billion structurally-balanced budget for Fiscal Year 2024-2025, which reflects a $48.3 million increase from the previous year. Overall, $2.4 billion, or 84.3% of the budget is supported by departmental revenue including State and Federal funding, charges for services, and use of non-General Fund available fund balances. The remaining $444.1 million is funded by General Purpose Revenue.

The 2024-2025 Special Districts Proposed Budget totals $61.5 million, a decrease of $1.2 million from the 2023-2024 Adopted Budget, and includes the Special Districts administered by the Public Works Department and the Parks and Recreation Division of the General Services Department.

“In alignment with our tradition of prudent fiscal management, the 2024-2025 Proposed Budget is structurally-balanced and strategically allocates resources to the Board's strategic priority areas,” said Interim San Joaquin County Administrator Sandy Regalo. “We have taken deliberate steps to ensure our investments are sustainable and we maintain healthy reserve levels to safeguard against economic uncertainties in the future.”

The 2024-2025 Proposed Budget is financed with the following estimates of available funding. It should be noted that the County is projecting an increase in property tax revenue for 2024-2025 of 4% from the 2023-2024 year-end estimates. Sales Tax is projected to decrease by 4.2% from the 2023-2024 Adopted Budget.

The 2024-2025 Proposed Budget totals $2,823,455,727 including the General Fund, Special Revenue Funds, Capital Project Funds, and four Enterprise operations. The following graph illustrates total County expenditures by functional area.

Net County Cost is the amount of discretionary resources allocated to a department or program. This is also referred to as the General Fund contribution. The General Fund contribution totals $444.1 million and is distributed by functional area as shown in the following figure.

• Law & Justice: $258 million, an increase of $36 million.
• General Government: $68.3 million, a decrease of $114.9 million.
• Human Services: $45.7 million, an increase of $12.4 million.
• Health Services: $39.2 million, an increase of $6.1 million.
• Environmental Protection: $16.7 million, an increase of $4.0 million.
• Parks & Recreation: $8.7 million, an increase of $134,006.
• Capital Maintenance: $1.8 million, a decrease of $2.2 million.
• Education: $820,357, a decrease of $160,511.
• Roads & Facilities: No Net County Costs.

2024-2025 Proposed Budget Highlights

Promotes Good Governance and Invests in the County's Workforce

• Continues a structurally balanced budget totaling $2.82 billion for the eleventh consecutive year. No prior year General Fund balance is used to fund the budget.
• Maintains a Reserve for Contingencies balance of $130 million to comply with the Board's policy of setting the balance at five percent of total appropriations.
• Funds the full 5% contribution toward the unfunded retirement liability at a cost of $31.7 million, with a Net County Cost of $10.8 million.
• Increases staff positions by 172 full-time equivalents (FTEs) across multiple departments.
• Includes funding for all negotiated labor increases. The largest group of employees will receive a 4% increase in July 2024.

Addresses Housing and Homelessness

• Invests in the SJ CARES program (through the Probation Department), which is a Countywide multidisciplinary team approach to address homelessness in San Joaquin County. The program will support clients on probation who are experiencing homelessness, along with homeless citizens who are deemed high-end users of multiple County systems.
• Coordinates the transition of the Mental Health Services Act (MHSA) to the Behavioral Health Services Act after the passage of Proposition 1 in March 2024. The 18-month transition will include a shift in spending for housing and early intervention. $119.2 million in MHSA funding is programed for 2024-2025.
• Funds the CalWORKs Housing Support Program (HousingWORKs) through the First 5 program and Human Services Agency. This program provides homeless CalWORKs families with housing navigation and case management. HousingWORKs will serve 500 families in 2024-2025 with $4.85 million in funding.

Supports Law and Justice

• Invests in multiple public safety departments that include increasing staffing in law enforcement and deploying new technologies to meet existing demands for mandated services and delivery of services.
• Works to reduce fentanyl overdoses and deaths through public education, staff training and legislation.
• Targets funding for services and partnerships to address the needs of sex trafficking victims.

Realizes Financial Improvements from the Dignity Health Management Services Agreement with SJGH

• Financial improvements include multiple initiatives to lift revenue through clinical documentation improvement, changes in revenue cycle management, and increased cash collections; and cost reductions achieved through leveraging CommonSpirit group purchasing power, reassessment of outside contracts, reduced reliance on supplemental staffing, and an improvement in Leapfrog quality scores. Cash collections are expected to improve by $1.5 million to $2 million annually.

For 2024-2025, 34 projects are proposed, totaling approximately $81.3 million in new construction and existing facility renovations. New construction totaling $59.1 million includes some of the following highlights:

• 6 South El Dorado Street Renovations (Former InShape Building): To complete construction for the new District Attorney offices.
• Dorothy J. Heisler Detention and Program Facility (SB 1022): For construction of a new medium security housing and program facility to replace the existing Honor Farm barracks.
• Emergency Medical Services Warehouse: For design, engineering, and construction of a pre-engineered metal facility for departmental emergency services requirements.
• Hazelton Complex Facility: For design, engineering, and construction of a replacement facility for the Community Development, Environmental Health, and Public Works Departments.
• Morgue/Medical Examiner Facility Replacement: For construction of a new Morgue/Medical Examiner facility.
• Old Court House Demolition: For design, engineering, and demolition of the existing facility located at 222 E. Weber Avenue.
• New Registrar of Voters Facility: For design and engineering of a new Registrar of Voters facility.
• Sheriff's Office Classroom Building/Evidence Building/Training Facilities: For design, engineering, and construction of pre-engineered metal facilities for various departmental objectives.
• Solid Waste Transfer Station Replacement: For design, engineering, and construction of a replacement facility for the Lovelace Transfer Station for the Public Works Department.

Continues American Rescue Plan Act (ARPA) Funds Deployment

• Continues to deploy $148 million in ARPA funds received to offset the economic effects of COVID-19. ARPA funded projects include transitional and supportive housing, the expansion of behavioral health workforce in the County, improvements to Veterans' facilities, mitigation of illegal dumping, enhancements to small business programs, improvements for public safety services, and numerous projects within County departments and fire agencies which benefit the County and constituents.

“This year's Proposed Budget is a testament to our commitment to building a stronger, more resilient, and more connected community that will support our County's growth and prosperity for years to come. I truly appreciate the commitment of our staff who helped prepare a sound budget that supports the Board's strategic priorities and remains focused on the long-term sustainability of the County government structure,” Regalo concluded.

Further deliberation and adoption of the Final Budget is expected at 9:00 a.m. on June 18 where public comment is welcome. To review the full budget proposal or for additional budget highlights and details, please visit the website website .

###