San Joaquin County Faces Fiscal Challenges Ahead

Midyear budget report shows solid current finances, but revenue losses loom from state and federal cuts

Mar. 20, 2026 at 8:23am

Got story updates? Submit your updates here. ›

San Joaquin County's midyear budget report shows the county is in solid financial shape currently, with $23.7 million in general fund savings projected by the end of the fiscal year and $10.1 million more in local tax revenue than budgeted. However, the report also warns of tough times ahead due to expected cuts in state and federal funding for services the county is mandated to provide.

Why it matters

San Joaquin County's financial health is crucial for maintaining essential services for residents. The potential revenue losses from state and federal budget cuts could force the county to make difficult decisions about prioritizing programs and services, potentially impacting vulnerable populations who rely on the county's health and human services.

The details

The county's property tax, sales tax, and Proposition 172 public safety sales tax revenues are all performing better than budgeted for the current fiscal year. However, the county assessor is projecting only 2% property tax growth for 2026-2027, a significant slowdown from the current year's 7% growth. Additionally, the county faces potential revenue losses of $5 million to $9 million annually for its health centers, $22.5 million by 2029 for behavioral health services, and $10 million to $25 million through 2028-2029 for the county hospital, due to proposed federal Medicaid (Medi-Cal) reductions. The Human Services Agency is also facing a $12.4 million Net County Cost deficit.

  • The county projects $23.7 million in general fund savings by the end of the current fiscal year.
  • The county expects to bring in $10.1 million more in local tax revenue than budgeted by June 2026.
  • The county assessor preliminarily projects 2% property tax growth for 2026-2027, down from 7% growth in the current year.

The players

Sonny Dhaliwal

Board Chair of the San Joaquin County Board of Supervisors.

Sandy Regalo

San Joaquin County Administrator.

San Joaquin Health Centers

A county-run health center that serves over 33,000 patients annually, with approximately 85% covered by Medi-Cal.

San Joaquin General Hospital

The county-run hospital that faces potential revenue reductions of $10 million to $25 million through 2028-2029.

Human Services Agency

The county agency facing a projected $12.4 million Net County Cost deficit, driven largely by revenue shortfalls as rising program costs have outpaced funding.

Got photos? Submit your photos here. ›

What they’re saying

“This midyear report reflects the discipline and leadership of the Board of Supervisors, coupled with the hard work and discipline of our County departments. But it also sounds a warning we cannot ignore.”

— Sonny Dhaliwal, Board Chair, San Joaquin County Board of Supervisors

“Today's numbers are the result of careful planning and spending discipline, and projections for the coming year demand fiscal prudence.”

— Sandy Regalo, San Joaquin County Administrator

What’s next

The county will continue to look for lower cost health insurance options, and multiple labor groups are currently in negotiations, which will likely result in further cost increases. The proposed budget presentation will be on the board agenda on June 2, and the final budget hearing will be held on June 16.

The takeaway

San Joaquin County's midyear budget report highlights the delicate balance the county must strike between maintaining essential services and preparing for potential revenue losses from state and federal budget cuts. The county's financial discipline has allowed it to weather the current fiscal year, but the road ahead appears challenging as it navigates the impacts of broader economic and political forces beyond its control.