PLACERVILLE, Calif.— The El Dorado County Board of Supervisors formally adopted its Fiscal Year 2025-26 Budget, in accordance with State law which requires the adoption no later than October 2nd. It is higher than the $1.04 billion FY 2025-26 Recommended Budget approved by the Board June 10th, reflecting adjusted final County fund balances, State budget impacts and other departmental needs identified after the Recommended Budget was approved. 

“This Adopted Budget is balanced, meets all Board Budget Policy Goals and all statutory requirements, and, while also restricting General Fund growth, sets aside 25% of adjusted General Fund appropriations for use in future years to mitigate the impact of economic slowing on County programs,” said Interim Chief Administrative Officer, Sue Hennike. 

As mentioned during the June budget hearing and nearly all the other eight public meetings on this year’s budget, growth in the County’s major discretionary revenues has slowed while costs have continued to rise. Growth in revenue from Property Tax, the largest source of discretionary revenue, is nine percent lower than the average annual growth over the prior ten-year period. In Fiscal Year 2024-25, Discretionary Transient Occupancy Tax (the tax on hotels and short-term rentals such as vacation home rentals) were 3.4 percent lower than last year and Sales and Use tax also declined. 

While the Adopted Budget includes an additional Fund balance of $44 million across all governmental funds from the Recommended Budget, it is being used to meet all Board Budget Policy goals and set-aside funding for future use rather than any ongoing expenses. 

“With declining revenues, difficult decisions and strong fiscal discipline will continue to be essential, as they have been the past two years particularly,” Hennike said. “In fact, as directed by the Board in April, staff are already working with departments to create five percent and ten percent budget reduction scenarios to account for expected continued economic uncertainty and thoughtful reductions, if needed, to provide a sustainable and balanced budget to the Board next year.” 

The Adopted Budget can be found here on the county’s website.