County of Monterey Budget Workshop Develops Priorities and Plans to Address Anticipated Shortfall; Priorities include retaining employees, reducing service impacts; Cost saving strategies remain in place

The County of Monterey is facing a projected $39.7 million deficit in the coming fiscal year due to a

combination of factors, including rising labor and operational costs, ongoing impacts from multiple natural

disasters, and the loss of one-time and federal funding. Fiscal forecasts also predict additional shortfalls in the

next several years.

On Tuesday, March 25, 2025, the County of Monterey Board of Supervisors (Board) held a Budget Workshop

to delve into its current $2.25 billion fiscal plan, consider options to manage the anticipated shortfall along with listening

to elected officials and department heads whose operations are impacted and requesting budget augmentations.

The Budget Workshop is a key part of the overall county budget process. The direction given by the Board

included identifying ways to retain filled positions and mitigating operational impacts. In preparation for the

Budget Hearings on May 28 and May 29 (if needed), countywide finance staff will work with elected officials and

department heads to identify options to address shortfalls. This work will produce the County Administrative

Officer’s FY 2025-26 Recommended Budget.

Residents are encouraged to review the workshop, which is now available online at:

https://www.facebook.com/MontereyCoInfo/

https://www.youtube.com/c/MontereyCountyTV

The Board and County Administrative Officer remain committed to remedying financial challenges.

To address the anticipated shortfall, the County has implemented responsible cost-saving strategies, including a

hiring freeze, not filling vacant positions, eliminating long-term unfunded positions, and exploring opportunities

to implement technology into county processes where appropriate. While every effort is being made to avoid

layoffs and draconian service reductions, the focus is to deliberately right-size the organization.

The Board and County Administrative Officer remain committed to ensuring the County’s fiscal stability in the

long term. They will continue to assess the financial landscape and adjust accordingly to best serve and in the best

interest of the community.

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