The $9.5 billion budget is slightly more than the current fiscal year, with county leaders projecting $1.1 billion in general purpose revenue coming in the next fiscal year to fund day-to-day operations costs – about $90 million more than the current year.
Property taxes are the largest source of revenue for the county, accounting for 93% of revenue. Officials are forecasting a steady rise in property tax revenue, increasing to $1.22 billion by 2028-29. Sales and other local taxes are also expected to continue on an upward trend.
About $4.8 billion in incoming revenue will be restricted to specific uses, such as for John Wayne Airport, OC Waste & Recycling, OC Public Libraries and OC Parks.
The OC Board of Supervisors is expected to finalize the budget at its June 25 meeting.
At 38.6% of the general operating budget, community services programs would be receiving the largest portion of county funding under the current proposal. This sector includes the Social Services Agency, Health Care Agency, OC Community Resources and Child Support Services.
The second largest category of spending goes toward public safety departments, which includes the OC District Attorney’s Office, probation and the OC Sheriff’s Department. Compared to the current fiscal year’s budget, public safety is looking at an estimated $7 million boost in funding.
Late last year, the OC Board of Supervisors approved an immediate 8% raise for sheriff’s deputies, with additional pay increases over the next three years under a new contract estimated to cost the county $150 million. The raises are going to 2,100 deputies and staff covered by the contract. The department’s managers also negotiated a new contract with similar raises for the same timeframe.
Unknown is if financial deficits at the state-level will have implications for the county, OC officials said. California Gov. Gavin Newsom’s latest $288 billion budget revision proposes cuts across 260 state programs, including those funding measures to address homelessness, child care and public health. State leaders have a June 15 deadline to work out final details of their budget, looking at a deficit of approximately $45 billion to content with.
“While adoption of a final state budget is pending, the governor’s January proposed budget and May revise reflect revenue shortfalls and reductions in funding to counties,” County CEO Frank Kim said in a letter to the OC Board of Supervisors. “Specific impacts of the state’s budget on the county are to be determined and will be reconciled in the mid-year budget report process, but are expected to reflect reductions or delays in funding related to public health, homelessness and housing, CalFresh and CalWORKs administration, and climate-related initiatives.”
Also affecting the way money will be distributed is the passage of Proposition 1.
Prop. 1, approved by voters in March, will direct $4.4 billion toward the creation of mental health beds and $2 billion for homeless housing projects – in his letter, Kim said the county will continue to evaluate how the proposition will impact the county’s mental health programs and services before it goes into effect in July 2026.
He said funding may be redirected from “existing county mental health outpatient services and supports and programs for early intervention, including children and youth, to prioritize housing subsidies and intensive outpatient services, competitive grants to develop supportive housing and treatment facilities for individuals, including veterans, experiencing or at risk of homelessness with behavioral health challenges.”
Also in the works for the next fiscal year, county leaders will create a Master Plan for Aging to better address the needs of the senior community, officials said.
Funding is also being set aside for several infrastructure projects including updating bridges, roads and flood control channels, as well as at least $78 million for continuing improvements at John Wayne Airport.
Staff writer Hanna Kang contributed to this article.