Facts Frequently Asked Questions

There are currently 18,505 budgeted positions included in the FY 2026-27 Recommended Budget. The budgeted position count is a 2% decrease from last year and an increase of 3% from five years ago. 

The County’s financial structure includes multiple types of funds which are established based on state or federal requirements for the specific types of services being tracked. The General Fund is the primary operating fund for the County. It accounts for many departments’ operational activities and provides for the ongoing operations of the County. Each individual fund maintains a fund balance, which is the net amount remaining after all expenditures and revenues for the fiscal year are accounted for. This balance is important because it helps ensure there is sufficient funding to support the fiscal period’s planned expenditures. Not all portions of the fund balance are available to use. Some amounts may be categorized as “reserved” and set aside to meet current contractual obligations, support future capital or IT needs, or provide a contingency to cover an unforeseen or unexpected event. The remaining portion may be “unreserved” and available for budgetary planning purposes.  

The County’s policy for financial and contingency reserves outlines how reserves are established, maintained, and used to support long-term financial stability. The policy is targeted at maintaining healthy reserve levels so the County can respond effectively to unanticipated crises, events, or budget shortfalls. Consistent with guidance from the Government Finance Officers Association (GFOA), the County’s policy is to maintain a financial reserve equal to two months of General Fund operating revenue, known as the Reserve for Budget Stabilization. 

In addition, the County maintains a Catastrophic Event Contingencies reserve to address unanticipated and severe economic downturns, major emergencies, or catastrophes that cannot be covered with existing appropriations. Following GFOA recommendations, this reserve is set at 15% of ongoing annual General Purpose Revenues. These reserves are part of the reserved fund balance and maintained in the General Fund.

September – December: The County begins its budget process with the preparation of the Five-Year Strategic Financial Plan which allows for the impacts of assumed revenue increases and capital and equipment expenditures to be determined and provide an estimate of the budgetary needs for each department.   

January – March: County departments develop their annual budget for the next fiscal year and provide year-end projections for the current fiscal year to determine fund balances available.  All budgets are due to the County Budget & Finance Office on or before March 1^st.

March – June: The County Budget & Finance Office ensures all budgeted funds are balanced and works with each department to ensure all operational needs are met and clarify any requests for additional resources.  The Recommended Budget Book is compiled and released to the public a minimum of 10 days prior to the scheduled Public Budget Hearings which is typically the Board meeting falling on the second Tuesday in June. 

The Public Budget Hearings are held each year for the County Executive Office (CEO) to present the Recommended Budget for the upcoming fiscal year to the Board of Supervisors for discussion and consideration. During the hearing and before the Board takes action, the public has an opportunity to provide comments on the budget. After the CEO’s presentation, the Board provides a non-binding straw vote on the recommended budget and may also give direction for any adjustments prior to the final budget adoption.

The County’s budget is revised through planned Budget Reports that are placed on the Board Agenda in September, January, and April and require a four-fifths vote to approve.

• September: The estimates used in developing the budget are reconciled with the actual ending balances for the year and adjustments are made as required to address any fund balancing issues.
• January: This is the only opportunity where departments may submit changes to their budgets to align their estimated state or federal allocations with the known amounts or to address any critical needs that were not known at the time of budget development.
• April: Year-end projections that result in appropriation shortfalls or savings are addressed in the April Budget Report to prepare for and ensure a smooth year-end closing process.

County departments prepare and submit structurally balanced budgets that conserve financial resources, implement savings alternatives, and minimize costs consistent with the County’s mission, values, strategic initiatives, and goals.  Requests for General Fund resources are limited to items that are critical in nature and vital to the health, safety and sustainability of the County and community. 

Budget requests are reviewed and analyzed compared to prior year trends, the Five-Year Strategic Financial Plan, and the economic forecasts provided by organizations such as Chapman University or UCLA. Recommendations on the resulting budgets are then made to the Chief Financial Officer and County Executive Officer. The budget is compiled, balanced, and, upon completion of the final review, a Recommended Budget is publicly published and prepared for the Public Budget Hearings in June.

In general, approximately 88% of the County’s total appropriations are funded by restricted or dedicated revenues that must be used for specific purposes such as for John Wayne Airport, OC Waste & Recycling, Roads, Flood, Libraries, and Parks. State and federal allocations or grants to administer state and federal programs at the local government level fund a large portion of the remaining appropriations. The smallest portion of the budget is funded by discretionary funds.   

Discretionary funds are locally controlled dollars that can be used to meet mandated service requirements and address general operational needs because they are not restricted or dedicated for a specific purpose, or required to support state or federal programs. This is also referred to as General Purpose Revenue (GPR). Property taxes are the largest and most important source of GPR for the County. Notably, Orange County’s General Fund receives the lowest property tax revenue allocation share (5%) of all 58 counties in California. GPR is the primary funding source used to support Net County Cost (NCC).

Departments receive NCC allocations, approved by the Board during the budget adoption process, for programs and activities which are not funded by specific, dedicated revenue streams.  While GPR does not have the specific limitations associated with the dedicated and non-discretionary revenue sources, the County uses GPR to meet its mandated services requirements that are not fulfilled by the state and federal governments such as funding match requirements for Community Services programs and operational expenses of the Public Protection and General Government Services departments. In general, the County’s mandated services account for approximately 81% of NCC, with the remaining 19% allocated to non-mandated services. The proportion between mandated and non-mandated services may vary year to year.

Included in the County’s Five-Year Strategic Financial Plan are strategic priorities costing $1 million or more in any one year that may span over multiple fiscal periods and require planning to ensure sufficient resources to implement. Funds are typically set aside from unanticipated revenues, growth funds, or savings realized at the end of the fiscal period and reside in a reserved fund balance account.

The Public Protection program is the third largest program in the County and includes OC District Attorney, Office of Independent Review, Probation, Public Defender, and OC Sheriff Department. Public Protection is a mandated function that the County is legally required to provide and is generally funded with General Purpose Revenue, as state and federal contributions are minimal.  In contrast, the Community Services program, which is the County’s largest program in appropriations and staffing, is generally responsible for carrying out programs on behalf of the state and federal governments and therefore receives state and federal funding to operate those programs.   

All departments may submit requests to adjust their budgets to address critical needs not known during budget development time or to align estimated state or federal allocations with the finalized amounts.   These budget adjustments are included in the January Mid-Year Budget Report, which is placed on the Board’s agenda for the last meeting in January. Additional Budget Reports are prepared in September to reconcile to the prior fiscal year’s year-end closing process, and in April to prepare for the current fiscal year’s year-end closing addressing any appropriation issues identified through departments’ year-end projections. 

All budget and strategic planning documents are available on the County’s website at the links noted below.  In addition, the Citizens’ Guides to the Strategic Financial Plan, the Budget at a Glance, and Budget are prepared annually and provide an overview of the County’s organization, budget process, and current initiatives.

Please subscribe to our distribution list to receive the most up to date information on the budget and strategic financial plan process. To subscribe please visit https://cfo.oc.gov/  and scroll to the bottom of the page or visit the County Budget & Finance Office subscribe page directly at https://service.govdelivery.com/accounts/CAORANGE/subscriber/new?topic_id=CAORANGE_21.

Further details, including economic assumptions and department details can be found in the Recommended Budget Book, the Annual Budget Book or Strategic Financial Plan.

Budget and Budget at a Glance:  https://cfo.oc.gov/budget

Strategic Financial Plan: https://cfo.oc.gov/budget/strategic-financial-plan

A listing of Key Budget Terms is maintained and posted each year on the County’s website along with the budget documents. 

Budget:  https://cfo.oc.gov/budget

The most efficient manner to get a specific question answered is to submit it directly to the Budget and Finance Office through the website at https://cfo.oc.gov/public-feedback.