CSAC Statement on LAO’s 2026-27 Fiscal Outlook

Sacramento, CA —California State Association of Counties (CSAC) CEO Graham Knaus issued the following statement after the nonpartisan Legislative Analyst’s Office issued its annual Fiscal Outlook for the 2026-27 state budget:

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. Otherwise, the pain will hit the millions of Californians whose very survival depends on hospitals, shelters and schools.

Background:

• California’s 58 counties are the frontline administrators of essential services that safeguard vulnerable Californians — including Medi-Cal, CalFresh, child welfare, behavioral health, and homelessness services.
• These services are not optional. They are lifelines for families, seniors, and individuals facing economic hardship.
• Each county faces its own budget deficit and impacts from HR 1. (Latest example: Kern County CalFresh costs)
• The state zeroed out the successful Homeless Housing, Prevention and Assistance (HHAP) program for the current FY25-26 fiscal year, after consistent past funding of $1 billion/year.

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