Alameda County Budget Work Group Meeting - May 19, 2026

The Board of Supervisors of Alameda County convened a budget work group meeting on May 19, 2026 (the transcript notes Monday, May 18, but the specified date overrides). After roll call, a quorum was established. The meeting focused on the economic outlook, the Governor's May Revision of the state budget, and the county's fiscal year 2026-27 budget development.

Public Comments & Testimony

• John Lindsay Poland: Highlighted the structural deficit from persistently unfilled budgeted positions, particularly the Babu settlement requiring specific jail staffing levels that the Sheriff's Office has never met, while jail population is half of when the settlement was reached. Called on the Board to revisit the settlement. Also requested that the May 28 budget presentation include prior year actuals and breakdowns of salaries and services/supplies by program area.
• Kari Malkiki (Restore Oakland, District 3): Expressed full support for prioritizing the most vulnerable residents, echoing Supervisor Halbert. Argued that the Babu settlement should be revisited with current data, and that cost-effective strategies involve keeping high-need individuals out of jail through supportive housing and community services. Emphasized a "care first, jails last" approach as a budget demand.

Discussion Items

• Economic Context: Melanie Atendito presented unemployment rates (Alameda County 4.5%, state 5.4%, nation 4.4%), tech layoffs continuing (Cisco), slow job growth in the East Bay compared to national trends, and real estate trends (median home price $1.36 million, sales up 32% month-over-month but down 4% year-over-year). Slides highlighted financial and policy pressures on counties.
• State Budget (May Revise): Amy Costa (Full Moon Strategies) outlined the Governor's May Revision, including $15.1 billion in reserves, $10 billion+ in Prop 98 reserves, and $4.5 billion in the State Fund for Economic Uncertainties. Revenue proposals include extending the net operating loss limitation (estimated $850 million) and a digital software tax ($450 million). Multi-year forecasts show continued deficits. HR1 impacts are projected at $1.5 billion in state costs in budget year, with 44,000 Medi-Cal disenrollments growing to 1.1 million by 2029-30. County advocacy requests (CSAC) of $1.9 billion were largely unmet; only $104 million in general funds proposed. Housing and homelessness funding includes $1.5 billion in HAHA (rounds 6 and 7). No Prop 36 implementation funding was provided.
• County Budget Update: Amy Schrago presented the current year (FY 2025-26) approved budget of $6.1 billion, with $4.3 billion in general fund appropriations and about 10,500 FTEs. The FY 2026-27 maintenance-of-effort (MOE) budget shows a net county cost increase of $76 million (8%) and a preliminary funding gap of $91.4 million. Key changes include $33 million decline in public safety sales tax revenue, $20 million loss in CalFresh revenue, $41 million net salary/benefit increase (including $72 million COLA), and $93 million savings from prepayment of unfunded liabilities. Internally, $50 million in balancing strategies have been identified: $40 million in additional revenue (updated projections on sales tax, property tax, program revenues), $3 million in ongoing cost reductions, $10 million in salary/benefit adjustments (primarily deleting long-vacant positions), and $1 million in other solutions. The remaining gap is $46.1 million. The county aims to avoid service impacts and layoffs.
• Board and Staff Discussion: Supervisors Halbert, Tim, Tam, and Health Director Choudray engaged. Halbert emphasized protecting the most vulnerable and requested detailed vacancy transparency. Tim noted the structural deficit and questioned reliance on one-time strategies; Tam appreciated transparency efforts (MAC roadshows) and asked about overtime costs relative to headcount. Choudray cautioned that community-based organizations are hurting and that realistic expectations must be set, especially as FY 2027-28 will be even worse.

Key Outcomes

• No formal votes were taken; the work group is a deliberation step.
• The proposed budget is scheduled for presentation on May 28, 2026, with budget hearings set for June 18 and the week of June 22, 2026.
• The county has identified $50 million toward the $91.4 million gap; work continues with department heads to close the remainder.
• The county will continue outreach to Municipal Advisory Councils and collaborate with labor and community partners.
• Addressing the Babu settlement was suggested by public comment as a long-term structural solution but was not formally taken up by the Board.