Fresno County budget outlook strained by fuel costs, federal cuts

FRESNO COUNTY, Calif. (KFSN) -- Fresno County officials are facing increasing fiscal unit arsenic rising substance costs and imaginable national backing cuts compound an already projected multimillion-dollar fund shortfall.

The region is forecasting a $17.5 cardinal shortage for the adjacent fiscal year, and officials accidental unexpected spikes successful substance prices are already straining the existent budget.

Fresno County Supervisor Nathan Magsig said substance costs person surged acold beyond what planners anticipated.

"The existent fund twelvemonth that we were in, we did not expect substance outgo to spell up much than 50%, which we were seeing close now," Magsig said.

Fuel prices person climbed rapidly successful caller months. In January, Fresno County paid $2.99 per gallon. By March 4, instantly pursuing the archetypal strikes connected Iran, the terms roseate to $3.52 per gallon. Just 5 days later, connected March 9, costs jumped again to $4.58 per gallon.

Magsig said the concern could worsen if substance prices proceed to rise.

"Where I bash person concerns is if we spot state prices staying astatine these higher levels and adjacent moving to $8 to $9 a gallon, you're looking astatine astir a tripling and outgo from what we are paying successful January 2026," helium said.

As fund deadlines approach, the region is besides preparing for the effects of HR1, besides known arsenic President Trump's "Big Beautiful Bill." The authorities is expected to marque important cuts to national programs specified arsenic SNAP and Medicaid.

Over the adjacent 2 to 3 years, region officials estimation those changes could outgo Fresno County betwixt $70 cardinal and $300 cardinal successful mislaid funding.

"The region cannot instrumentality a $300 cardinal hit. We don't person $300 cardinal other that are sitting around," Magsig said.

In response, region leaders person placed 20 antithetic departments connected alert and asked them to hole for a worst-case fiscal scenario.

"We've asked for them to commencement modeling what it would look similar arsenic we attack the adjacent fund twelvemonth if determination were nary increases close present to their budget. We've besides asked them to model, what if we had to chopped 5%, what would that look similar arsenic acold arsenic unit and workload," Magsig said.

County leaders are besides exploring imaginable caller gross options, including a transient occupancy taxation that would use to tourism-related lodging, specified arsenic hotels and abrogation rentals.

Magsig said that the measurement could look connected the ballot arsenic aboriginal arsenic November.

The region does person reserves acceptable speech for unexpected expenses, specified arsenic rising substance costs, and officials are considering tapping into those funds.

The county's adjacent fund is acceptable to instrumentality effect connected October 1.

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