Alameda County Budget Work Group Special Meeting - April 23, 2026
Alameda County Budget Work Group Special Meeting - April 23, 2026
The Alameda County Board of Supervisors Budget Work Group held a special meeting on April 23, 2026, to discuss the economic outlook, federal and state budget updates, and the county's preliminary fiscal year 2026-27 maintenance of effort (MOE) budget. The meeting featured presentations from the County Administrator's Office and special guests from the California Legislative Analyst's Office (LAO) on the impacts of federal HR1 legislation on Medi-Cal and CalFresh. Supervisors David Halbert (District 1) and Lena Tam (District 3) presided.
Economic and State Budget Outlook
- Amy Shraga presented economic data: Alameda County's unemployment rate was 4.5% in February 2026, down from a pandemic peak of 14%. The median home price reached $1.3 million, with sales up 34% month-over-month but down 2% year-over-year. Foreclosure filings rose 32% year-over-year in January 2026, though levels remain well below historic peaks.
- Federal update: The President's FY27 budget proposed a 10% cut to non-defense spending and a 44% increase in defense spending. It is unlikely to be enacted as proposed.
- State update: The Governor's May Revise, due by May 14, 2026, will include additional spending cuts. The Senate Democrats released a budget framework emphasizing responsible budgeting and maintenance of essential programs, including increased costs from HR1.
Presentation by LAO Analysts on HR1 Impacts
- Jason Constanturus and Ryan Woolsey, principal fiscal and policy analysts from the LAO, presented on HR1's effects on Medi-Cal and CalFresh.
- Key changes include new work and community engagement requirements, more frequent eligibility renewals, restrictions on non-citizen eligibility, reduced federal funding for emergency care and administration, and tighter rules on provider taxes.
- Medi-Cal disenrollments could reach up to 2 million people statewide; CalFresh disenrollments estimated at 650,000. Alameda County's data shows 159,000 residents may be subject to work requirements in Medi-Cal starting 2027, with 14,600 expected to lose coverage in FY26-27, rising to over 50,000 by 2030. For CalFresh, 40,000 recipients will face strict three-month time limits, with 19,000 at highest risk of losing assistance.
- CalFresh administrative costs for Alameda County would increase from $16.1 million to $26.3 million starting October 2026 due to reduced federal match.
- The LAO analysts noted three key issues for the legislature: immediate implementation of HR1, long-term program structure and financing, and support for those disenrolled, who may become uninsured or rely on strained county indigent care programs.
County Budget Update
- Susan Moraneshi, County Administrator, and Rasley presented the FY26-27 Maintenance of Effort (MOE) budget. The current FY25-26 budget is balanced at $6.1 billion with $4.3 billion in general fund appropriations supporting 10,500 FTE positions.
- For FY26-27, program appropriations increase $78 million (2%) while revenues are flat, resulting in a net county cost increase of $76 million (8%). The total net county cost for all programs is $1,045 million.
- Key cost drivers include salary and benefit increases ($41 million net after $93 million pension savings), internal service fund increases (building maintenance up $19 million, motor vehicle up $4 million, risk management up $7 million), and program changes such as a $33 million decline in public safety sales tax revenue and a $20 million loss in CalFresh revenue due to HR1.
- The preliminary funding gap is $91.4 million, but without the benefit of prior pension prepayments the gap would have been $185 million. The county has closed $2.7 billion in funding shortfalls since EREF began in 1992-93.
- Unfunded capital and major maintenance needs exceed $1 billion.
Key Outcomes
- No formal votes were taken; the meeting was a workshop.
- Supervisors and staff discussed the significant challenges posed by HR1, particularly the impact on county indigent care programs and administrative burdens. Director of Social Services Andrea Ford requested LAO support for continuation of the CalFresh match waiver, additional workforce funding for Medi-Cal and CalFresh eligibility, and specific funding levels for urban counties.
- The CAO outlined a budget balancing approach: close the $91.4 million gap through revenue adjustments, cost reductions, use of vacant positions and departmental funds, and reduced reliance on one-time strategies. Next steps include incorporating the Governor's May Revise, updating revenue projections, and presenting a proposed balanced budget to the Board on May 28, 2026.
- The LAO analysts emphasized that the state's structural deficit and limited flexibility require difficult decisions, and that county administration is both a programmatic and fiscal priority for the legislature.
Meeting Transcript
Well, good afternoon, everyone. I'd like to welcome you to the Alameda County Board of Supervisors Budget Workshop Special Meeting, budget work group special meeting. The budget work group welcomes you to our meeting. And members of the public are appreciated for their participation. In-person and remote participation is allowed at this meeting. I'll uh ask the clerk to provide brief instructions for those participating remotely. Thank you. Detailed instructions are provided in the teleconferencing guidelines. A link to the document is included in today's agenda to view an automated trans translated transcript or listen to an automated translated audio of the meeting from English into multiple other languages. Please utilize the wordly link in today's agenda or the QR codes posted throughout the room and select your preferred language from the drop-down menu. If you are joining the meeting using a computer, use the bottom button at the bottom of the screen to raise your hand to request to speak. When called to speak, please unmute your microphone and state your name. If you're calling in, please dial star nine to raise your hand to speak. When you're called to speak, the host will enable you to speak. If you decide not to speak, please notify the clerk when your call is unmuted, or you may simply hang up and dial back into the meeting. As a reminder, you may always just observe the meeting without participating by clicking on the view now link on the county's webpage at acgov.org. When called, you will have two minutes to speak. Please limit your remarks to the time allocated. Public comment will generally alternate between in-person and online speakers and subject to overall time limits. Thank you. Thank you very much. And if you are in person, we'd ask that you fill out a speaker slip with the clerk. And um, we do have item four is for public comment. So we welcome you to observe the meeting until that point in which time you can make public comment. I will note that uh we uh welcome you, and I'll start by saying uh I am Alameda County Supervisor from District One, David Halbert. I'll let my colleague introduce herself. Good afternoon. I'm Lena Tam, Al May County Supervisor for District Three. And we also have our county administrator, and I think we'll introduce staff. Welcome and introductions is next. Supervise um county administrator, Susan Moraneshi. There, there you go. Uh Rasley Today with the County Administrator's Office. Amy Shraga with the county administrator's office LD Lewis with the Alameda County District Attorney's Office. I'm here for District Attorney Ursula Jones Dixon. Uh Brian Ford, Chief Probation Officer. Kimberly Gaseray, Director GSA. Daniel O'Dessenberg, Public Works Director. Andrea Ford, Director of the Social Services Agency. Well, we have Jason and Ryan will introduce you in just a little bit. So we have special guests to remain anonymous for now. But we're going to go right into a PowerPoint presentation, a special presentation of economic and state budget outlook. Susan Thank you. At our work group today, we're going to spend some time talking about the economic outlook as well as some updates on state and federal budget. And as Supervisor Halbert mentioned, we're joined by a couple of guests from the legislative analysts' office who we will introduce a little bit later to take a deeper dive into some of the issues that we are facing at the state. And then that will be followed by our own updates on the county budget. So I'm going to turn it over to Amy Schrego to present the economic outlook and state and federal update. Good afternoon, everyone. So just quick uh quick overview of what we're going to review today, as Susan said, and I'm going to start with economic updates, state and federal updates, and then turn it over to our special guests. So this is a snapshot of Alameda County's unemployment rate going back to July 2019 and pre-pandemic.
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