Alameda County's budget shortfall is the largest since the pandemic

Alameda County Election Commission call for Board of Supervisors to consider splitting the registrar's fiefdom, Registrar argues past errors are not unique to the county

☕️MORNING BUZZ

—Alameda County’s budget shortfall is $105.7 million, its largest deficit since the pandemic.

The specific reasons for the “funding gap,” a term the county prefers to use, are not yet clear. But rising labor and pension costs typically drives the county’s annual deficit.

The Fiscal Year 2020-21 budget included a pandemic-inflated funding gap of $128 million. Prior to that, the last time the county’s shortfall was this large was Fiscal Year 2017-18, which reached $108.5 million.

Last year’s funding gap was, by county standards, a modest $68 million.

Alameda County Administrator Susan Muranishi said work on balancing the budget has begun with county department heads. She added, “We’re are in midst of reviewing funded and unfunded positions.”

This year’s budget process is fraught with much uncertainty. Two-thirds of the county’s general fund is derived from state and federal funding sources.

The state is reporting a $12 billion budget shortfall for the next fiscal year. In addition, the Trump administration and House Republicans are setting the stage for potentially devastating cuts to safety net services.

The uncertainty will likely lead the county to adjust the budget after its adoption some time in mid-June, Muranishi said.

The county still maintains a sterling AAA credit rating and a countywide 4.3 percent unemployment rate. Conversely, the county has $1.5 billion in unfunded capital costs over the next five years, and $1.4 billion in unfunded actuarial accrued pension liabilities.

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