Yesterday, the Sonoma County Board of Supervisors adopted their FY 25-26 Budget. The morning’s action was swift and brutal. Acknowledging that they knew less than ever about their traditional sources of revenue, the message of the document was “hold off” until more is known.
That doesn’t mean that the 262-page governmental instructional manual doesn’t contain valuable direction, just not the final set of decisions. Because HEAPA’s mission focuses on what are often called the safety net services, I’m going to use this post to highlight what I think are clues to moving those services forward. And in the process, I’m going to advocate for strengthening our bottom up democracy.
This post is going to highlight the budgets of the Department of Health Services and the Human Services Department. Home of most of the County’s programs, and the sources of an enormous amount of contracts for community-based services, they will probably bear the brunt of the impact of anticipated federal and state cutbacks. Hearing from the County Executive that the proposed $2.71 billion budget contains $335.9 million in federal funds, and $561.8 million in state funds (much of it dependent on federal funding), the Board was told that almost $300 million from those sources could be in jeopardy. At this moment, however, it could only report that $41 million in federal grants from the Department of Agriculture and FEMA have been cancelled.
“For the most part, the County is in wait-and-prepare mode with the federal budget. Many reductions have been discussed either by the administration or by Congress, but until a budget is passed, we will not know impacts. This is particularly true for potential reductions to large programs such as Medicaid. Even if the amount of a federal cut were known, how the state would react and what level of impact would ultimately come to the County are impossible to say. As such, it does not make sense to develop specific plans. Rather, it is imperative that the County not over-commit resources and remain nimble to address changes as they come.”
The clues to moving forward in this budget can be found in the budgets of the two safety net departments. Pages 141 to 149 contain this information, and the full budget can be found through this link. The document is held on a private HEAPA drive, hopefully responsive to a link from this website. If not accessible to your pursuit, It should be downloadable to your computer from the press release issued by the County today: Sonoma County FY 25-26 Proposed Budget.
The top chart on page 145 shows the change in revenue for the four divisions of the Department of Health. It won’t surprise anyone whose programs operate in support of homeless that the Department’s expenditures for those services are are proposed to be reduced by $2,164,197 this year. It may surprise community contractors to learn that the County believes it will spend $24,320,657 on homeless programs. Recently, the Board adopted contracts for community services for next year for a little over $6 million. These contracts will soon be available on HEAPA’s drive. It has also become clear that state and federal funding for homeless programs is on the Trump chopping block, and County Homeless Continuums of Care may not exist much longer.
In contrast, the Department’s service area for behavioral health will experience a $29,835,331 increase in expenses this year, a 10.6% increase to a total of $306,809,778. Fueling this increase is the implementation of the Drug Medi-Cal Organized Delivery System (DMC-ODS), two large state grants for the Arrowood Bridge Housing Project and the Mental Health Diversion Project, a variety of Measure O expenditures for the County and City Mobile Support Teams, reestablishment of the school-based Crisis Assessment Prevention Education (CAPE), and a. wide range of contracts with providers of substance use and mental disorder outreach and counseling services for youth.
“Behavioral Health:
The biggest challenge to the Division is maintaining service capacity and delivery in our system of care-network, while at the same time working to implement considerable mandates and program changes from the state. In FY 2025-26, key areas of opportunity, as well as implementation challenges, include:
Opioid Settlement Funds (OSF) – Sonoma County has received $12.7 million in OSF and expects to receiveanother $31 million by 2038 for a total of $43 million. This funding, and the release of a Notice of FundingAvailability (NOFA) in 2025, provides the Division with the opportunity to increase much needed localservices for: harm reduction, prevention and education programs, and the expansion of substance usedisorder services and treatment facilities targeted to the needs of our local population and to addressregional service gaps.
SB 43 Implementation – SB 43 will go into effect January 1, 2026, and amends the definitions of gravelydisabled under conservatorship law. This law has the potential to greatly impact the number of individuals under conservatorship, further taxing the availability of services, staff, and treatment programs and facilities serving this population.
Mental Health Services Act (MHSA) transition to Behavioral Health Services Act (BHSA) – Preparation for the 2026 implementation of BHSA will have broad impacts on the Division, including substantial changesin funding allocations for behavioral health funds. The Division will be implementing new and robust processes for developing local spending plans.” (underline mine)
“Human Services Department
HSD is experiencing key budgetary changes driven by shifts in federal and state funding, increased program costs, and strategic use of fund balance to support critical services.
Adult and Aging Services: A $1.3 million reduction in grant revenue, with equivalent reductions in expenditures, resulting from the conclusion of one-time emergency funding from the American Rescue Plan Act (ARPA) and the Older Adults Recovery and Resilience (OARR) program accounts for the bulk of the $1.9 million reduction in Adult and Aging. The ARPA and OARR fund supported unique programs and supplemented existing programs such as Direct Transportation, Telephone Reassurance, Mobility Management (Transportation Navigation), Caregiver Respite, Legal Aid services, Home-Delivered Meals and Nutrition Infrastructure.
Economic Assistance: The $2.1 million increase is due to a significant reduction in vacancy rates. By updating salary and benefits, the Human Services Department was able to draw down additional Supplemental Nutrition Assistance Program (SNAP) funding for CalFresh.
Administrative Services: The $5.9 million increase is due to a $2.4 million increase in Country general fund and $3.6 million increase in 2011 and 1991 realignment revenue projections. The increase in General Fund is due to the increase in the cost of IHSS Maintenance of Effort (MOE). (see below).
In-Home Supportive Services (IHSS): Wages and benefits for IHSS care providers increased by $5.8 million due to the annual 4% increase to the MOE, rising provider benefit costs driven by an increase in paid IHSS hours, and the recently negotiated labor agreement with SEIU 2015. As part of the labor agreement, provider wages will increase by $2.00 per hour, bringing the total wage to $19.85 per hour as of March 1, 2026. Including benefits, the total hourly compensation will be $20.70. The costs associated with the County’s share of the IHSS wages are split between the General Fund and Realignment funding, and the increase in General Fund Contribution is thus largely tied to the increase in IHSS costs.
State, Federal, and Other Governmental Revenues: Overall revenues are projected to increase by $6.5 million, or 2.0%. Key revenue changes include but are not limited to:
•A $4.0 million increase in CalFresh funding.
•The reinstatement of the CalWORKs single allocation, restoring $2.1 million in funding.
•A projected $1.7 million increase in the IHSS Administration allocation to offset rising provider benefitcosts.
•A $3.6 million year-over-year increase in Realignment revenue forecast for both 1991 and 2011Realignment. Revenue forecasts are aligned with state projections based on the latest available resources.
Estimated revenue for next year reflect the aforementioned $1.3 million reduction in Adult and Aging emergency funding, the $2.9 million reduction in Housing and Disability Advocacy Program (HDAP) and Housing Support Program (HSP) rollover allocation funding, and the end of some grant funding in FY 2024-25.
Use of Fund Balance: Staff recommends utilizing $3.9 million in fund balance for one-time expenditures to address specific funding gaps and programmatic needs.
•$1.5 million to cover increases in insurance liability costs.
•$500,000 to support the transition plan to reduce HDAP and HSP funding in Employment and Training.
•$1.1 million in Title IV-E Waiver certainty grant funds, which must be spent by September 30, 2026, tosustain child abuse prevention services initiated under the waiver.
•$650,000 from the wraparound reinvestment fund for unanticipated startup costs related to Short-TermResidential Therapeutic Programs (STRTP) – the funds are restricted to child welfare services and noadditional revenue is expected.
•$250,000 in No Wrong Door project funding in alignment with the County Strategic Plan.
The use of fund balance is $1.7 million lower compared to the prior year. The utilization of Wraparound Reinvestment Funds and No Wrong Door project funding remains consistent with prior year levels. The use of Title IV-E waiver funds is decreasing, as the remaining available funds must be fully expended by September 30, 2026. Inthe prior year, $1.6 million from fund balance was budgeted due to uncertainty surrounding the CalWORKsAdministration Single Allocation budget. However, the Governor’s revised budget restored the proposedreductions, making the use of fund balance unnecessary. Historically, the Human Services Department has notbudgeted for the use of fund balance due to strong and reliable revenue sources.
HSD remains committed to managing these budgetary changes strategically to ensure the continued delivery of essential services while adapting to the evolving funding landscape.
Opportunities and Challenges
Staff continues to adapt to the evolving fiscal and programmatic landscape, addressing critical funding reductions while identifying opportunities to enhance service delivery and operational efficiency. As demand for services grows, HSD will remain committed to maintaining essential programs and ensuring the well-being of Sonoma County’s most vulnerable residents.
Adult & Aging
Public Conservator: Legislative changes at the state level will likely lead to an increase in conservatorships within Sonoma County. Two key unfunded legislative initiatives are expected to drive this growth:
•Community Assistance, Recovery, and Empowerment (CARE) Court went into effect in December 2024,introducing court-ordered treatment and supportive services for individuals with severe mental illness,such as schizophrenia. If individuals fail to comply with court-ordered treatment, they may be placedunder conservatorship, increasing caseloads for the Public Conservator’s office.
•Senate Bill 43, which takes effect in January 2026, expands the definition of “gravely disabled” to includeindividuals with severe substance use disorders, such as chronic alcoholism, even in the absence of a co-occurring mental health disorder. This broadened eligibility has the potential to significantly increase thenumber of individuals requiring conservatorship, further straining an already overburdened system.
Adult & Aging Information & Assistance (I&A) Program: The Program has experienced a significant surge in demand, reflecting both the ongoing demographic shift toward an aging population and the growing complexity of needs among older adults. Originally introduced in 2019, the Program has proven to be a vital resource for our community, connecting thousands of individuals to critical services. However, as demand continues to rise, our ability to sustain and scale this essential program is becoming increasingly challenging.
Key Trends & Growing Needs
•Phone calls: Over the past 12 months, I&A has handled 10,186 incoming calls, marking a 26.21% increasein the last six months alone.
•In-Home Supportive Services (IHSS) referrals: The Program facilitated 1,656 new IHSS referrals, reflectinga 29.68% increase in six months.
•Medi-Cal assistance: There were 1,535 Medi-Cal-related discussions with senior clients, which is a 37.25%rise in requests for assistance in the last six months.
The rising demand for I&A services signals an opportunity for proactive leadership and investment in aging services. By expanding funding, strengthening partnerships, and leveraging innovative solutions, the County can build a system that meets today’s needs while preparing for the demands of tomorrow. Investing in this program will not only support the County’s growing senior population but also reduce long-term costs by enabling earlier interventions and preventing costlier crisis and out-of-home care. The Department is focused on ensuring that aging residents receive the timely support they need while maintaining a system that is efficient, equitable, and scalable.
Family, Youth & Children
Family First Preventions Services Act (FFPSA): This federal legislation created a funding stream for child abuse prevention services that will become accessible to California counties in the fall of 2026. The Division continues to plan and work with the community to prepare for full implementation. To draw down federal dollars, the services provided to families must be evidenced based, approved by the federal government, and included in the California state plan. To support the community to be ready to provide these services, the division has used specifically allocated block grant dollars to support several pilot programs using evidenced based practices in the community and support training for community providers on these evidence-based practices.
Valley of the Moon Short Term Residential Therapeutic Program (STRTP): The STRTP’s doors opened for service on July 9, 2024, to start the 3-year pilot. To date, the STRTP has served 10 Sonoma County youth and enabled them to remain in their community, stay near their families and networks of support, and continue attending their schools of origin. The program population will expand to 16 youth with the hiring of a second behavioral health clinician in the near future. Thus far the Valley of the Moon STRTP has only served Sonoma County youth. However, we are working closely with our partners at Sonoma County Behavioral Health in order to establish contracts to serve youth from neighboring counties.
Employment & Training
Employment and Training General Assistance (GA) program: The Program has seen a 47% increase in caseload, reflecting both the success of efficiency-driven strategies and the growing need for economic support among the County’s most vulnerable residents. By streamlining application processing without adding staff, we have significantly improved access to assistance, ensuring that those in need receive timely support. However, this progress has come at a cost—placing substantial strain on our workforce and limiting our ability to provide high-quality, comprehensive services.
Employment and Training (E&T) is working on strengthening the GA program by ensuring sustainable case management capacity to provide individualized support, expand job training and placement efforts to help GA recipients transition to stable employment and leverage technology and partnerships to enhance service delivery within staff capacity. In addition, E&T is working on reducing GA appointment wait times, which are currently 4-5 weeks.
State and Federal Budget Impacts
Housing and Disability Advocacy Program (HDAP) & Housing Support Program (HSP): The discontinuance of HDAP and HSP rollover allocations presents a significant challenge for housing services. This funding loss will reduce the availability of housing assistance for individuals experiencing or at risk of homelessness, particularly those with disabilities. As a result, staff is implementing cost-saving measures, including the planned closure of transitional housing programs and reductions in case management, financial assistance, and community resource connections. Staffing adjustments are also underway to realign personnel with available funding. The remaining allocation will be fully dedicated to maintaining housing for existing clients as the County develops a long-term sustainability plan. HSD anticipates minimal impact on most families. However, the primary effect will be a reduced capacity to accept new cases starting in 2026.
Federal Funding: HSD receives a significant portion of its funding from federal sources. With the future direction of the federal administration uncertain, proposed reductions could potentially impact these funds. In Fiscal Year 2023-24, the County secured $101 million in federal funding. The programs most reliant on federal funding include CalWORKs, Adoptions, CalFresh, Foster Care, and Medi-Cal. “
HEAPA will be supporting regular monthly meetings of representatives of the County Advisory Commissions and Boards within the safety net departments. Collaborations and alignment of these advisors is essential in a year so full of change and critical decision-making. If the country is to continue to build a responsive system of government-funded facilities and services, it must be designed and monitored by those closest to the need.
Homeless Emergency Assistance Program Association 