Tuolumne County’s Wallet:  Budget Basics for Residents Part 1

We have heard a great deal about Tuolumne County’s budget amid decisive changes in departments and personnel this past year. For those unfamiliar with the budget process, it can be hard to interpret the volume of news about the state of county finances. Let’s review the basics of a budget and the county’s revenue sources.

The budget is essentially a financial plan that translates policy priorities into action. It should reflect the interests and concerns of the public through our elected Board of Supervisors (BOS) and address essential services, infrastructure needs, and state-mandated programs. It is developed over the months preceding each fiscal year, which begins July 1 and ends June 30.

Consider the “Roadmap to the Fiscal Year 2026 Adopted Budget.” 

• July/August – Close out previous (FY 2025) budget ending June 30
• August – Departments submit budget changes based on prior year actual expenditures; review/adjust recommended projections 
• September 8 – Recommended budget available to the public for review 
• September 23 – FY 2026 Adopted Budget hearing 
• October 2 – Board of Supervisors must adopt the budget. 

This process is structured to allow time for public comment and promote transparency. It is worth noting that the adopted budget is not a static financial plan – it is adjusted throughout the year depending on deviations from projected revenues and expenditures (1).

At a glance, the county’s fiscal year 2026 budget seems sizable. Total projected revenues amount to $304,476,939, but laws and constraints significantly impact how these revenues are administered and managed. The Board of Supervisors has discretion only over General Fund revenues ($71,815,672 in 2026). Ninety-five percent of these revenues come from property tax, sales tax, lodging tax, allocations of federal grant indirect costs for shared administrative services, and federal payments for non-taxable public lands. Other revenues are dedicated for specific services such as state and federal grants and fees for services.

The following are broad descriptions of revenue fund categories.

Governmental – General Fund. The county’s main operating fund, covering most daily services and expenses supported by general tax and fee revenues.

Governmental – Special Revenue Funds. Used to manage revenues legally restricted or designated for specific functions or services, for example funding of the Sheriff’s Department and the Department of Social Services.

Governmental – Capital Funds. Used to account for resources set aside for the construction, improvement, or acquisition of major county facilities and infrastructure.

Enterprise Funds –Self-supporting services financed primarily through user charges, ensuring revenues cover related operating and capital expenses.

Internal Service Funds – Allocated funds to assign internal county services such as IT, insurance, and telecommunications by department.

The Tuolumne County Auditor/Controller is responsible for examining and reporting on the county’s financial information annually. General purpose local governments must publish a complete set of financial statements presented in conformity with Generally Accepted Accounting Principles (GAAP) in the United States and audited in accordance with Generally Accepted Auditing Standards (GAAS) by a firm of licensed certified public accountants. The most recent Annual Comprehensive Financial Report available on the county website is for Fiscal Year 2022 (2).

NOTES

1. “Fiscal Year 2025-2026 Recommended Budget,” p. 17.
2. “Comprehensive Annual Financial Report,” Tuolumne County Auditor/Controller, Financial Data.