Orange County proposes a .5 billion budget for discussion by the Board of Supervisors on Tuesday.
Orange County has unveiled a proposed budget for the 2026-27 fiscal year totaling .5 billion, with approximately half allocated to support daily operational expenses through the general fund. This budget, which is scheduled for discussion by the Orange County Board of Supervisors on June 9, represents a decrease of around 0 million compared to the previous fiscal year. This reduction is attributed, in part, to the resolution of numerous claims related to the recent Airport fire, which concluded during the current fiscal cycle.
In the prior fiscal year, nearly 0 million was appropriated by the county to address potential payouts for claims submitted by victims of the Airport fire. As of late May, the county had settled over 1,200 claims, disbursing a total of 3 million. The proposed budget reflects a 5% reduction in expenditures across departments funded by the general fund, amounting to roughly million. This strategic cut aims to balance departmental budgets with available financial resources.
Budgetary constraints have been influenced by federal and state policy changes, particularly affecting significant safety net programs. The county remains determined to meet essential responsibilities, focusing on core services including community support, infrastructure, and public safety. An anticipated .3 billion in general-purpose revenue is projected to cover operational costs, signifying an increase of about million over the previous fiscal year. This boost largely stems from a million rise in property tax revenue, which constitutes 92% of the general-purpose budget.
Moreover, sales tax revenue is expected to improve, benefitting from an million uplift linked to a half-cent state sales tax dedicated to public safety initiatives. Despite this, most general-purpose funds are earmarked for state-mandated programs such as law enforcement and health services. Only 19% of revenue is available for discretionary purposes, like capital projects.
In the budget introduction, county CEO Michelle Aguirre underscored ongoing budgetary pressures stemming from fluctuating economic conditions, limited revenue growth, and escalating operational costs. Nonetheless, the Board of Supervisors is committed to sustaining high-quality services while ensuring adequate reserve levels.
As in previous years, community services comprise the largest portion of the budget, contributing to about 36% of operating costs. This category encompasses health and social services, parks, libraries, and child support initiatives. Meanwhile, funding for infrastructure and environmental resources, which includes public works and waste management, is projected to increase significantly, guided by major infrastructure project funding needs.
Public protection, including the Sheriff’s Department and District Attorney’s Office, accounts for 19% of the budget, with proposed expenditures rising by million due to increased costs. However, the county anticipates a million decline in “realignment revenues,” affecting juvenile justice and mental health services.
The Board of Supervisors is slated to conduct a budget hearing during its meeting on June 9, with final adoption expected at the subsequent session on June 23. This proposed budget reflects the county’s strategic efforts to address ongoing challenges while continuing to prioritize essential services to the community.
