RivCo Faces 'Immediate And Formidable Challenges' With Planning Budget, Supes Say

RIVERSIDE COUNTY, CA — Riverside County government's budget for the coming fiscal year would increase 4% under a tentative appropriations plan that the Board of Supervisors is slated to review Monday, requiring a draw-down of savings to cover an anticipated budget gap, though department heads may ask for more.

"We face immediate and formidable challenges," county Chief Executive Officer Jeff Van Wagenen said in an introduction to the 500-plus-page spending proposal. "Inflationary pressures, growing labor costs, unpredictable state and federal funding and necessary investments in aging infrastructure strain our financial capacity."

By law, the board must have a tentative spending blueprint in place by the start of the new fiscal year, July 1, though formal approval of appropriations can be deferred until September. Budget hearings are expected to conclude Tuesday afternoon.

Van Wagenen said unavoidable excess costs will necessitate the use of $73 million in reserves during 2025-26.

"This allows us to maintain essential services while preserving long- term financial resilience," the CEO said. "Looking forward, we are acutely aware that future budgets may require even more difficult choices. But our optimism is undiminished. Our approach involves pragmatic trade-offs, a steady hand and a clear vision."

The proposed aggregate budget for 2025-26 is $9.98 billion, compared to $9.58 billion in 2024-25.

The Executive Office is forecasting a reserve pool of $655 million for 2025-26. It had been projected to be $720 million in the third quarter of the current fiscal year.

Payrolls continue to consume almost half of outlays under the budget plan. The county employs 25,632 people on a regular or rotating temporary basis, figures showed.

The proposed spending breakdown comprises the following in General Fund costs: 39% for public safety; 29% for social services; 22% for the Riverside University Health System; 6.5% for financing and related government services; 2.3% for public works and community services; and 1.3% for internal services, which include custodial, landscaping and facilities maintenance.

Direct property taxes remains the county's largest source of discretionary income. It rose to $574 million in 2024-25, compared to $542.6 million in 2023-24, according to figures. The projection is for a $54 million, or 10%, jump in the next fiscal year. The rise in property values is part of the overall inflationary pressure that has elevated costs across a broad spectrum of goods and services since the end of the COVID lockdowns.

Public safety agencies will lead off Monday's budget hearing, beginning with the county District Attorney's Office and Sheriff's Department, followed by the Fire Department.

The D.A.'s office is seeking an appropriations plan totaling $220.8 million, while the Executive Office is recommending a budget of $219.2 million. The agency's current fiscal year budget is $212.8 million.

The sheriff's office is asking for approval of $1.28 billion in outlays, while the EO is recommending that the board authorize $1.17 billion. The current year's appropriations topped out at almost exactly the same amount EO administrators believe should be appropriated in 2025-26.

The fire department's ask for the next fiscal year is $619 million, but the EO is recommending that the board hold the line at $577 million. The 2024-25 budget was $524 million.

The Department of Public Social Services consistently requires the highest level of appropriations of any one agency. For 2025-26, DPSS, which is an umbrella for a range of social services programs, including dependent children, foster care, adult protection and welfare benefits, is seeking $1.63 billion, while the EO has said the ceiling should be $1.59 billion. The current fiscal year outlays totaled $1.56 billion.

About two-thirds of the county budget is made up of programmed spending, including federal and state earmarks for specific uses, along with grants and related external revenue. The board has little control over those dollars.

Following this week's public budget hearings, the board is slated to have a final hearing to consider last-minute requests and adjustments at the end of the month.