With 58 Counties in California, Where Does Yours Place Financially?

Downtown Los Angeles in a file photo. John Fredricks/The Epoch Times

Commentary

The final two counties in California to release their annual comprehensive financial reports for the year ending June 30, 2022, were Mariposa (Dec. 27, 2024) and Tuolumne (April 25, 2025).

While 49 of the 58 counties stayed roughly in place, nine of them moved four or more places. Using the graph below, let’s review to see what caused the upward or downward movement.

The year ending in 2022 was a positive one for most municipalities, thanks to the Coronavirus Aid, Relief and Economic Security (CARES) Act and other federal relief funding, like the American Rescue Plan Act (ARPA).

In the top 10 of the counties, Marin jumped up five places during the year. The county with a civic center designed by the world-famous architect, Frank Lloyd Wright, enjoyed revenues in excess of expenditures of $282.1 million. This explains the improvement in its unrestricted net position of $252.6 million.

San Benito County had revenues in excess of expenditures of $39.9 million, explaining its $33.8 million reduction in its unrestricted net deficit. This allowed the county to move up four positions into 8th place.

Orange County’s revenues in excess of expenditures was $1.3 billion, which reduced its unrestricted net deficit by $1.33 billion, and made it the biggest mover, jumping eight places up to 16th place. Not bad, as its bankruptcy filing back in 1994, due to the loss of $1.67 billion in its investment pool, had placed this county in 46th place back in 2010. Modifying its retiree medical plan (other post-employment benefit) and employee pension plan contributions had a lot to do with its upward climb.

Lassen County’s revenues in excess of expenditures were $22.8 million, reducing its unrestricted net deficit by $15.7 million, moving it up six positions.

Plumas County had an amazing year, in spite of its tragic wildfires, with revenues in excess of expenditures of $34 million. It restricted assets totaling $16.8 million and reduced its unrestricted net deficit by $14.5 million, moving it up six places.

San Francisco County and City have been in the news lately, like many other California metropolitan areas, in dealing with the annual budget for the upcoming fiscal year 2025–2026. It had revenues in excess of expenditures of $1.57 billion, which reduced its unrestricted net deficit by $1.1 billion. It also set aside $219.5 million in restricted funds. With this combination, it moved up three places, moving past Los Angeles County.

Many counties improved their unrestricted net positions and still dropped in the rankings, thanks to other counties making better improvements. But a few counties had setbacks.

Although Tulare County had revenues in excess of expenditures of $38.5 million, it restricted $40.8 million and saw its pension liabilities increase by $19.8 million, causing its unrestricted net deficit to increase by $10 million. The net result dropped it four places.

Kings County had revenues in excess of expenditures of $27.8 million, but had a prior period adjustment that reduced it by $14.9 million. It also restricted $3.7 million in funds and spent $18 million on capital assets, resulting in an increase in its unrestricted net deficit of $8.7 million. It dropped six places.

Riverside County had $405.6 million in revenues in excess of expenditures, but also saw its unrestricted net deficit grow by $41 million. This was due to the restricting of $424 million in funds, mostly for “public ways and facilities.” It dropped five places.

The revenues in excess of expenditures for Tehama County was $37.4 million, but its unrestricted net deficit only declined by $3.5 million. Restricting $9.9 million explains part of it. Investing $23.9 million into capital assets may explain the remainder. It also dropped five places.

The critical goal is to improve the unrestricted net position. The other is to complete the annual audit, which is the official score sheet, within six months. Of California’s 58 counties, 14 accomplished this admirable goal. The next deadline is March 31, and 25 counties were able to meet it. This left 19 counties, or one-third, delinquent. And the county officer responsible for issuing the report holds the title of “auditor-controller.” Oh, well.

Eleven counties were able to complete the audit work by the end of 2023. I bring this up because a county’s financial management team can’t make improvements in a timely manner from the recommendations that the auditors customarily provide to correct improper internal controls. It also makes budgeting a difficult chore if the county’s supervisors don’t have a balance sheet to plan from.

If you live in these more remote counties, or if you’re visiting them on vacation, as I have and so should you, then swing by the following halls of administration that also released their annual comprehensive financial reports for 2022 in 2024: Modoc (Jan. 9), Alpine (Jan. 19), Kings (April 5), Plumas (April 9), Imperial (July 19), and Humboldt (July 22). You’re going to love the trip, and they’re going to get the hint that some of us care about timely reporting.

Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.