Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Subject: Fiscal Year 2025-26 Budget for Measure K Funds
RECOMMENDATION:
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Measure K: Approve Measure K budget allocations in preparation for the Fiscal Year 2025-26 Recommended Budget, as set forth in Attachment A.
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BACKGROUND:
In 2012, County voters approved a ballot initiative, Measure A, to levy a countywide half-cent sales tax to financially support critical County services and facilities. In November 2016, Measure K was passed by County voters to extend the sales tax for 20 years, until March 31, 2043.
In preparation for the upcoming Fiscal Year (FY) 2025-27 budget cycle, the Board of Supervisors ("Board") ad-hoc Measure K subcommittee, consisting of Supervisors Speier and Canepa, worked with staff to review the anticipated Measure K revenue for FY 2025-26 and planned a Board retreat, which was held on March 4, 2025 for the full Board to consider Board categories, including options for Measure K expenditures.
DISCUSSION:
Mid-year estimates for Measure K revenue for FY 2025-26 were initially anticipated to total approximately $117 million. Since the release of those estimates, political and economic factors have led to market instability, raising concerns about a potential economic downturn that would negatively impact the County's revenue sources. As a result of the continued uncertainty, Measure K revenue estimates have been adjusted downward to $114 million.
Given the rapidly evolving fiscal landscape, ongoing concerns regarding potential shortfalls in the County's Vehicle License Fee Adjustment Amount (VLFAA), and rising costs for shelter services, at the retreat, both staff and the Board expressed concerns that Measure K funds may need to be shifted in the future to prioritize the most critical County services. The Board directed staff to work with department heads and the Measu...
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