Shasta County HHSA reports $2.7 million negative cash position in Social Services Fund

Shasta County’s Health and Human Services Agency reported a $2.7 million negative cash position in its Social Services Fund as of Oct. 12 and asked the Board of Supervisors to approve a package of reserve use, budget amendments and temporary General Fund support.

According to the HHSA staff report, the proposed actions included retroactive approval of $6,078,761 in additional Social Services Fund balance use for fiscal year 2025-26 and an extension of a General Fund loan that could temporarily affect General Fund cash by no more than $10 million. The report says the loan would be repaid with interest at the county treasurer’s pool rate.

An HHSA budget presentation asked the board to extend the loan through Feb. 28, 2027, and to provide direction on additional cost-saving measures. The staff report says Social Services is expected to remain in negative cash flow into fiscal year 2026-27 and identifies reimbursements and state realignment as sources for repayment.

The requested budget changes included a $190,796 reduction in Welfare and Cash Aid Payments appropriations, a $150,000 revenue increase in that budget, and a $1,080,155 transfer from Public Health to Social Services through a 10% realignment transfer, according to the budget-amendment memorandum. The package also called for a $150,000 increase in General Revenue and Transfers appropriations, offset by unassigned general-purpose fund balance.

HHSA told supervisors it had already used a soft hiring freeze agencywide and a hard hiring freeze in Social Services Administration, while reducing travel and office expenses and evaluating professional-services costs. The presentation proposed more targeted reductions in non-mandated programs, along with possible staffing changes and reorganizations to improve access to funding.

The materials reviewed for this story document the recommendations presented for the Oct. 27 board meeting but do not establish whether supervisors approved the reserve use, budget amendments, loan extension or additional cost-saving direction, or how they voted.