LAKEPORT—A Senior Legislative analyst from a Sacramento consultancy, with 20 years as an advocate for public agencies that include the California State Association of Counties (CSAC) and the California Special Districts, informed the Board of Supervisors Tuesday of the need to appeal to state government to preserve services cut by H. R. 1 legislation (The ‘Big Beautiful Bill”) passed by the U.S. Congress in July 2025.
Geoff Neill, lobbyist at Nielsen Merksamer, appeared at the BOS Chambers by Zoom to provide an overview of legislation pending in Sacramento. “There is a wave of bills introduced and bills coming up are to be heard in Policy Committees,” Neill said. After spring recess, we’ll have Committee hearings in April and May with lots of issues of substance. Your Board adopted a set of priorities earlier this year. The two of the priorities with most relevance are the response to H.R. 1 and the significant shift of funding responsibility.”
He went to explain; there will be higher costs for the state and the counties. Other priorities are preparing for wildfires and property insurance. “Bills of significant consequence for Lake County are not directly related to the Board’s priorities but are Bills that have a critical financial impact on Lake County,” he said. “So, as we get ready for the Bill hearings, everybody is preparing for Gov. Newsom’s May budget revision that was proposed in January.”
Neil heard from a number of sources that Newsom intends not to deal with the current year, but the upcoming budget year. “At least for now revenues are solid and we’re coming in above the estimates of the January proposal,” Neill said.
But in the years 2027-2028 the state is looking at serious deficits in a range of $20 to $25 billion. The Governor intends to make proposals that will balance not only the budget year, but the budget year plus one. So, he will not be leaving his successor with a serious problem to deal with during the first year as governor.
It is the Appropriations Committee that stores up all the Bills that comes to them and votes on all Bills at once. This year, it just so happens on that day, May 14, the Governor will make his revision to the Bill when first proposed in January. And any new proposals from the Appropriations Committee can be updated as well, and at that point they will have a good idea of what the new Bills will cost.
Rachael Dillman Parsons is director of Lake County Social Services, and she indicated staff knows what a game changer the passage of H.R. 1 was. “But we have to wait until the state budget is revised before we can get more specific of how it will impact the Social Services Department,” she said. “But I can tell you this, 50% of Lake County residents receive Medical and 25% receive CalFresh and based on estimates 2,000 to 2,500 are at risk of losing Medical, and so, with federal cuts, Lake County residents who receive CalFresh will be reduced by 1,000 to 1,200. But we have some mitigation strategies to reduce impacts to keep everyone enrolled.”
Neill then narrowed the 1,000 plus Bills introduced to a couple of hundred and focused on those with a relevant priority for the Lake County Board namely H.R. 1 cuts and the shifting funding responsibility to the that of the state and especially the county for Medical and CalFresh. The other priority is preparing for wildfires and sustaining adequate fire insurance.
Currently, revenues look solid and California is trending above January estimates, but the years 2027-28, are looking at serious deficits estimated at $20 to $25 billion Yet Gov. Newsom is reportedly looking at the budget year plus one, in order to avoid leaving his successor without serious problems during the new governor’s first year in office.
“We have to wait for the budget is revised before we get more specific how it will impact the Social Services Department,” Dillman Parsons said. “But I can tell you, 50% of residents receive Medical and 25% receive CalFresh. So, the federal cuts (to the Big Beautifull Bill) will reduce the number of county residents who receive CalFresh by 1,000 to 1,200. Loss to the Lake County economy could equal about $3 million annually if all CalFresh recipients lost benefits. The next big thing for CalFresh is implementation of work requirements for the able-bodied without children, which arrives on June 1.”
Following up on October 1, H.R. 1 requires a shift of funding of CalFresh by 20% from the federal government to California and likely passed through to the counties. “We’re engaging an advocacy to ensure that doesn’t happen,” Dillman Parsons said. “If not, we’re looking at running through our reserves within two years.”
Also on October 1, H.R. 1 restricts medical care to documented immigrants when costs transfer from the state government to the counties. Meanwhile, on Oct, 1, 2027, work requirements begin for medical coverage.
District 2 Supervisor Bruno Sabatier noted, the discussion is not about the merits of H.R. 1, but it is about the shifts of costs coming to the counties. “I think staff should submit whatever letters they can, to communicate to whomever they can contact, that this is a financial impact we cannot shoulder,” he said. “I like to see Mr. Neill and others talking to those who matter … this is going to be a difficult year (financially). Los Angeles delayed H.R. 1 because it costs $425 million to implement. San Diego has already made public programs they’ll be cancelling, because of H.R. 1 impacts.”
Chair Brad Rasmussen asked for further public and Board comment, and receiving none, urged the Board to include support for a letter to the state legislature regarding uncertain impacts of federal cuts, be included on the Board’s agenda at the next meeting, April 7.