May 29 Letter to delegation - Budget Priorities Amid Deficit Environment

May 29, 2025

The Honorable Senator Mike McGuire
President pro Tempore
1021 O Street, Suite 8610
Sacramento, CA 95814

The Honorable Assemblymember Damon Connolly
1021 O Street Ste. 5240
Sacramento, CA 95814

RE: Marin County Budget Priorities Amid Deficit Environment

Dear Senator McGuire and Assemblymember Connolly,

On behalf of the Marin County Board of Supervisors, thank you for your continued partnership and for your steadfast leadership during these difficult budget years. We recognize and respect that California is facing a significant fiscal challenge with a $12 billion deficit. We know that difficult decisions must be made, and we appreciate the balancing act you are undertaking to protect core services and programs.

As you and your colleagues finalize the state budget, we write to respectfully share some of Marin County's most urgent priorities and urge you to protect the programs that serve our most vulnerable residents.

Marin County Budget Priorities

Homelessness and housing
Marin County has fully embraced a Housing First model and has made demonstrable progress in reducing homelessness thanks to state investments, particularly through HHAP and Encampment Resolution Funding. Since 2017, chronic homelessness among individuals in Marin has declined by 41%, and the number of sheltered individuals increased by 16.4% since 2022. We have successfully transitioned 887 chronically homeless individuals into permanent supportive housing and an additional 1,423 individuals to a permanent housing destination through Rapid Rehousing since 2017, including those previously living in precarious, unsafe housing and encampments. These results are directly tied to your support and to targeted state funding.

We urge you to restore $1 billion to HHAP and another round of ERF in the final Budget. These are not theoretical investments in Marin — they are actively resolving encampments and reducing unsheltered homelessness. Additionally, while our Board was proud to be the first in the state to endorse Proposition 1, we did so knowing it would stretch limited behavioral health resources across a broader population. We cannot simultaneously reduce homelessness funding without severely jeopardizing overall progress on housing and behavioral health.

We also appreciate the one-time $500 million in Low-Income Housing Tax Credits (LIHTC) retained for this year, but are concerned about the lack of new funding for core housing programs, including the Multifamily Housing Program and Infill Infrastructure Grant Program. We support ongoing appropriations for these essential programs, and steps taken towards a future statewide housing bond. Together these are critical to developing more affordable homes and preventing homelessness. 

Health access and Medi-Cal equity
We understand the extraordinary uncertainty California faces from potential federal changes in Medicaid, but we know that local governments will ultimately absorb the cost of care if Medi-Cal is restricted at the federal and state level. In the May Revise, we are especially concerned about:

• Freezing enrollment for full-scope Medi-Cal expansion to undocumented adults 19+ in January 2026
• Introducing Medi-Cal premiums for undocumented adults starting January 2027
• Eliminating long-term care and dental benefits for undocumented adults
• Reinstating asset tests for all Medi-Cal seniors and people with disabilities
• Removing IHSS as a Medi-Cal benefit for undocumented adults

These changes would push uninsured residents back onto local health systems, increase emergency room use, and compromise community public health. In Marin, nearly 13,000 children, adults, and older adults are enrolled in Medi-Cal with “un-satisfactory immigration status”. Of that, more than 8,000 are adults (19-49) that only recently became eligible for coverage under the Medi-Cal for All expansion. We know that residents in our communities are using this critical program and need the essential healthcare services it provides.

Maternal and early childhood behavioral health
Finally, we are deeply concerned about the proposed elimination of $20 million in Mental Health Wellness Act funding, which jeopardizes local grants including Marin's $3 million award through the Maternal Behavioral Health Initiative (MBHI). This funding supports a cross-sector coalition led by North Marin Community Services and includes First 5 Marin, the Postpartum Support Center, Jewish Family and Children’s Services, and others.

These partners are building an integrated and bilingual care network that addresses prenatal and postpartum mental health, early childhood development, and family well-being. In Marin, more than 25% of parents experience mood or anxiety disorders, and 75% go untreated, especially in low-income and BIPOC communities. This grant is helping us close care gaps in treatment and access, reduce stigma, and create seamless systems of support. We respectfully urge you to ensure this investment is protected.

Other concerning cuts
We recognize that not every priority can be shielded, but we respectfully flag the following cuts as additional concerns for Marin County:

• IHSS: Proposed late penalties for counties related to the Community First Choice Option; changes to residual program timing; capping overtime/travel at 50 hours.
• Child Welfare: Reductions to the Emergency Child Care Bridge and Family Urgency Response System.

We thank you for your tireless advocacy on behalf of Marin County residents and your collaborative partnership with our Board. We remain committed to being strong and proactive partners with the State and hope these reflections are helpful as you approach the final days of budget negotiations.

Sincerely, 

Mary Sackett, President
Marin County Board of Supervisors

CC:       Marin County Board of Supervisors