Alameda County Board of Supervisors Special Meeting: Budget and Measure W Updates – April 29, 2026

This special work session of the Alameda County Board of Supervisors focused on the fiscal year 2026-27 budget outlook, the status of COVID-19 ARPA funds, and implementation plans for Measure W, the half-cent sales tax for essential county services and homelessness. The meeting provided an opportunity for the board to hear staff presentations, receive public testimony, and offer preliminary direction for the upcoming budget and spending plans. No formal votes were taken, but staff were directed to refine the Essential Services Fund proposal and return for possible action in May.

Public Comments & Testimony

• Blair Beekman (multiple times) expressed support for the county's collaborative approach with AA SEG on closed session items, urged caution against austerity measures, and praised Oakland's deliberate approach to addressing deficits while maintaining social services.
• Senior Services Coalition representatives (including Maria Alderete, Krista, Cynthia Arrington, Lavon Gibson, Wendy Peterson, and others) urged the board to invest $17.8 million over two years to meet the needs of older adults, citing increased poverty, food insecurity, and the impact of HR1 cuts. They highlighted that current Measure W funding for food and senior services is insufficient.
• Health care providers (Yui Nishike, Dong Sa, Tony Panetta, Ella Schwartz, others) warned of revenue losses from Medicaid changes (HR1, Prop 1, elimination of PPS for undocumented immigrants). They asked the board to prevent cuts to HealthPAC and increase county indigent care funding, noting that clinics serve vulnerable populations and cannot absorb losses.
• Prevention advocates (including PSA Finneth, Testata Kazadik, Sangita, Preet, and others) from the Prevention Matters Collaborative urged the board to protect UELP mental health prevention programs, which are at risk due to Prop 1 cuts. They argued that prevention saves costs and prevents crises.
• Food security advocates (Jessica Montes, Kayla, Casey Bartholomew, Linda Liu, Caronica) requested increased funding for food assistance, noting that the proposed $5.5 million per year is a significant cut from the current $15 million allocation. They emphasized the need for multiple food distribution channels, including prepared meals for unsheltered individuals.
• Unincorporated area representatives (Kay, Diana Montano, Alina Farooq) thanked the board for including unincorporated communities in the Essential Services Fund but urged fair allocation and continued representation.
• Other speakers (Caleb Smith, City of Oakland) requested greater transparency and collaboration on Home Together fund allocations; others supported boarding care homes, rapid rehab programs, and the use of tax-defaulted properties.

Discussion Items

Federal, State, and County Budget Financial Updates

County Administrator Susan Ren and Budget Director Melanie presented an economic overview and the FY 2026-27 maintenance-of-effort budget. Key points:

• The county faces a $91.4 million funding gap for the coming fiscal year, driven by rising costs (including $41 million net salary/benefit adjustments, $33 million in internal service fund increases, and $50 million in capital/maintenance) and flat program revenue.
• The gap is partly offset by $93.4 million in retirement savings from past pension liability reductions, which helped maintain the county's triple-A credit rating.
• Program revenue is not keeping pace with net costs; the county is heavily reliant on state and federal aid (nearly two-thirds of general fund revenue).
• Staff recommended closing the structural gap through ongoing adjustments, including reviewing program revenue, identifying cost reductions, and reviewing vacant positions.
• Pending factors include unfunded capital needs, the impact of state policies (Prop 1, Measure W implementation), and potential federal cuts (HR1).
• The proposed budget timeline: Governor's May revision by May 14, proposed budget to board on May 28, hearings and adoption in late June.

ARPA Funding Status Update

Pat O’Connell provided a status report on the county’s $324.6 million in ARPA funds (plus $330 million in CARES Act funds). Key points:

• All funds must be obligated by December 31, 2024, and spent by December 31, 2026.
• As of March 31, 2026, most funds are either spent or encumbered. Health Care has $21.4 million encumbered; GSA has $31.5 million encumbered for capital projects. Social Services and CDA funds are fully spent.
• Staff are working closely with departments to ensure all funds are spent by the deadline. The federal government is being more strict about reporting and disallowing changes.
• Supervisors expressed concern about some encumbrances (e.g., $3.3 million for vaccinations, $6.8 million for hotel sheltering) and asked for detailed plans to avoid clawbacks. Staff assured the board that they are on track to spend all funds.

Measure W – Home Together and Essential Services Fund Updates

County Administrator Susan Ren, AC Health Director Anika Chardry, Housing Director Jonathan Russell, and Amy Schrager presented the implementation plans for Measure W.

Home Together Fund (80% of ongoing revenue):

• The fund is expected to generate approximately $1.4 billion over 10 years, with $1.2 billion allocated to the Home Together Fund.
• The Home Together 2030 plan is being refreshed with a racial equity analysis and system modeling. Key program areas: housing (43%), shelter (17%), prevention (12%), access (8%), coordination (4%), and capital (11%).
• For FY 2026-27, the proposed Home Together budget is $288 million, including $93 million in one-time capital investments. For FY 2027-28, the budget is approximately $158 million (steady state).
• Staff emphasized that the fund will be used to sustain, enhance, and expand homelessness services, with a focus on preventing homelessness and expanding housing vouchers.
• Pending factors: potential federal cuts (HUD Continuum of Care, HR1), state reductions (HAP funding), and Prop 1 impacts on mental health services.

Essential Services Fund (20% of ongoing revenue):

• The board designated $34 million per year for essential services. The proposed two-year (FY26-27 and FY27-28) expenditure plan totals $82 million, including $68 million in ongoing programs and $14 million in one-time capital.
• Categories: Stabilize the Safety Net ($20M/year) – covers Prop 1 bridge funding, HealthPAC, Medi-Cal retention, and supports for vulnerable communities. Meet Basic Needs ($7M/year) – food assistance, senior services, and unincorporated area food security. Housing Stability and Tenant Protections ($7M/year) – rental registry, landlord-tenant relations, rehab, legal assistance. Capacity Building ($7M/year) – CBO support, economic development, commercial corridor inspection, and potential unincorporated area manager. One-Time Capital/Major Maintenance ($14M) – includes Castro Valley Library, food hub, Livermore sewer, Lorenzo Theater, and other projects.
• Staff requested board direction to incorporate these recommendations into the proposed budget.

Board Deliberation and Direction

Supervisors provided extensive feedback and asked staff to refine the Essential Services Fund plan. Key points from supervisors:

• Supervisor Miley emphasized the need for transparency, collaboration with cities, and results. He suggested using the $170 million prudent reserve if additional funds are needed for food security and stabilization. He also requested a dashboard for regular Measure W status updates.
• Supervisor Fortunato Bas stressed the importance of addressing HR1 and Prop 1 impacts, especially on food security and mental health. She supported using the prudent reserve and noted that overage from Measure W could be used to backfill the reserve.
• Supervisor Tam highlighted the uncertainties from Prop 1 and HR1, and noted that the $20M stabilization fund covers many of the requested programs. She cautioned against over-reliance on the prudent reserve given sales tax volatility.
• Supervisor Marquez flagged the need for a comprehensive overview of all pending requests (Office of Immigrant Refugee Affairs, reparations, Care First Jails Last) and asked for more detailed analysis before committing funds. She supported the use of other reserve accounts if needed.
• Supervisor Miley reiterated that the board must see demonstrable results, especially in getting people housed and off the streets. He called for a standing agenda item on Measure W at joint committee meetings to track progress.
• The board generally agreed that the staff proposal is a good starting point, but more work is needed to align with community input and city collaboration. Staff will bring back a refined plan for the May 19 work session or a subsequent action item.

Key Outcomes

• No formal actions taken. The meeting was a work session; the board provided individual direction to staff.
• Staff will refine the Essential Services Fund two-year expenditure plan based on board feedback, including potential adjustments to food security funding, senior services, and consideration of the prudent reserve. The refined plan will be presented at the May 19 work session for further discussion, with a possible action item at a later meeting.
• Staff will develop a dashboard for regular Measure W spending and outcome reporting, to be presented at joint health and social services committee meetings.
• The county will continue to work with cities and community-based organizations to align spending plans and ensure equitable distribution of resources.
• The county administrator confirmed that a balanced budget will be presented by June 30, 2026, incorporating the board's direction on Measure W.