SACRAMENTO, CA - California counties are bracing for severe budget shortfalls that threaten vital social services, according to a statement released today by Graham Knaus, CEO of the California State Association of Counties (CSAC), following the nonpartisan Legislative Analyst’s Office’s (LAO) annual Fiscal Outlook for the 2026-27 state budget.
Knaus warned that state and county collaboration is critical to maintaining California’s safety net programs. “The LAO’s report is grim, and county budget forecasts are even grimmer.The only way through this crisis is for the state to partner with counties to preserve California’s safety net: Medi-Cal, CalFresh, indigent care and homelessness funding.or else, the pain will hit the millions of Californians whose very survival depends on hospitals, shelters and schools,” he stated.
California’s 58 counties administer essential services for vulnerable populations, including Medi-Cal, CalFresh, child welfare, behavioral health, and homelessness services.These programs are considered lifelines for families,seniors,and individuals experiencing economic hardship.
Counties are currently grappling with individual budget deficits compounded by the impacts of HR 1. Recent examples include increased costs for CalFresh benefits, as seen in Kern County, where new requirements could affect at least 18,000 residents receiving assistance.
Further exacerbating the situation, the state has eliminated funding for the Homeless Housing, Prevention and Assistance (HHAP) program for the current FY25-26 fiscal year, ending a consistent $1 billion annual investment previously recognized as prosperous in addressing homelessness.
