County’s 2026-27 budget workshop balances strategic investments with economic uncertainty

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*The county’s recommended fiscal year 2026-27 budget was presented during a workshop at the Board of Supervisors meeting.*

The San Bernardino County Board of Supervisors received a financial update during its May 5 budget workshop, outlining the county’s proposed fiscal strategy, long-term financial forecast and targeted investments ahead of the fiscal year 2026-27 budget hearing and adoption scheduled for June 9.

County CEO Luther Snoke and County Chief Financial Officer Matthew Erickson led the presentation, highlighting the county’s continued focus on prudent budgeting, maintaining stable public services and preparing for a slower-growth economic environment.

“When we budget prudently and position ourselves appropriately for the environment, we’re able to provide stable and consistent community services,” said Snoke.

Preparing for economic headwinds

County leadership outlined several emerging financial pressures facing local governments, including slower assessed property value growth, federal and state funding uncertainty, geopolitical risks, litigation costs, and increasing law enforcement liability exposure.

After nearly a decade of annual assessed valuation growth averaging 6.8 percent, the county is projecting significantly slower property tax growth of approximately 2.23 percent in 2026-27 — the lowest projected growth rate since 2012.

The county is also monitoring the potential impacts of federal H.R. 1 legislation, including an estimated $10.7 million ongoing-cost increase associated with CalFresh administration and an additional $10 million set aside for future federal funding uncertainties.

At the same time, the county continues preparing for rising workforce and human services costs:

Up to $228 million ongoing projected for future labor agreements through 2030-31
Up to $52.5 million ongoing for mandated human services programs, including foster care, adoptions and In-Home Supportive Services
Continued set-aside of $8.7 million ongoing for potential law enforcement and detention needs tied to Proposition 36 impacts

Five-year forecast shows measured growth

Erickson presented the county’s five-year general fund forecast, noting that while the county is projecting a $32 million ongoing surplus in 2026-27, future years may present operating deficits if revenue growth continues to slow.

County leadership explained that the forecast is intentionally designed to identify potential future challenges early while maintaining flexibility to adjust spending priorities as economic conditions evolve.

“Although we are facing some challenges going into the next several fiscal years, we’ve positioned ourselves through prudent budgeting to address those challenges,” said Erickson.

Proposed targeted investments

Even amid slower growth projections, the county is proposing approximately $273.7 million in targeted investments for 2026-27, most of which are one-time expenditures.

Proposed investments include:

$22.3 million to support underserved and vulnerable populations
$77.2 million for county facility and operational capital improvements
$57.5 million for technology modernization and county system upgrades
$27.8 million to address public safety and community concerns
$43.7 million toward financial security reserves and contingency funding, which includes the law enforcement liability reserve reallocation
$7.9 million to support land use permitting and advanced planning services
$5.5 million for community improvement and infrastructure projects
$26.5 million for various department needs and mandates
$4.2 million for community services including animal care, emergency services, and the Etiwanda Preserve
$1.0 million for economic development including tourism and regional airport enhancements

Among the highlighted initiatives are:

A proposed $5 million investment toward a reentry-focused “New Beginnings Campus” near Glen Helen aimed at reducing homelessness and recidivism among formerly incarcerated individuals
Ongoing funding support for the future Animal Care Center in Bloomington
Funding for sheriff and district attorney facility improvements in the High Desert and mountain communities
Creation of a new enterprise system replacement reserve to support future countywide technology modernization efforts

“Despite some of the challenges ahead, we still have an extraordinary amount of targeted investments planned for next fiscal year,” Erickson said.

The board also discussed how the county can continue leveraging state and federal partnerships, one-time funding opportunities, and strategic reserves to support long-term priorities while preparing for slower revenue growth in future years.

Addressing increased law enforcement liability costs

In addition, the workshop focused on addressing increasing law enforcement liability costs facing both the county and its contract cities. County leadership explained that rising litigation costs and claims statewide have created growing pressure on the county’s liability reserves.

To address the issue, county leadership recommended:

Allocating $20 million from the County General Fund Liability Reserve to strengthen the county’s law enforcement liability funding levels
Providing a $5 million one-time subsidy from the County General Fund Liability Reserve to help offset approximately 50 percent of premium increases faced by the county’s 14 contract cities for Sheriff’s Department services

The board unanimously approved the recommendation for staff to include the liability reserve allocations in the Recommended 2026-27 Budget, which will return for formal adoption at the June 9 meeting.

By prioritizing fiscally responsible stewardship and strategic investments in public services, the county’s upcoming 2026-27 budget furthers its goal of achieving the Countywide Vision of a complete county that capitalizes on the diversity of its people, geography and economy to create opportunities for residents to live, work and play.

Additional County Update News – May 7, 2026