FOR IMMEDIATE RELEASE
DATE: July 9, 2026
CONTACT: Kimberly Ross, Supervising Community Education Specialist, (530) 225-5040 or CR [at] shastacounty.gov (CR[at]shastacounty[dot]gov)
Health and Human Services Agency Increases Cost-cutting Measures to Balance Financial Demands with Community Needs
SHASTA COUNTY – Counties throughout California, including Shasta County, are facing significant budget challenges driven by rising service demands, increasing costs, and State and Federal revenue streams that fail to meet the demand of increasing costs.
These are not challenges unique to Shasta County, but they require thoughtful, deliberate action at the local level, Shasta County Health and Human Services Agency (HHSA) Director Christy Coleman said.
“This financial uncertainty presents a challenging time for our community,” Coleman said. “Although difficult choices must be made, we want to reassure residents that the health agency is striving to preserve and maintain the services they rely on most.”
Over the past year, HHSA has provided the Shasta County Board of Supervisors with five separate budget updates, outlining the agency's financial status, cost-saving measures already implemented, and additional options for reducing expenses while maintaining critical services. These include CalFresh, CalWORKs, Medi-Cal, Child Welfare Services, Adult Protective Services, In-Home Supportive Services, Housing, Behavioral Health, and Substance Use Treatment programs, as well as prevention programs. HHSA is not considering cutting state-mandated programs.
Since receiving the authority to implement organizational and fiscal changes in May 2025, HHSA leadership has undertaken a comprehensive review of every budget and every budget line. Each expenditure has been evaluated by reviewing historical spending, assessing operational necessity, and identifying opportunities for cost reductions without compromising essential public services.
Strengthening fiscal accountability is a major priority. Fiscal training has been expanded for staff to improve budget oversight. HHSA has also strengthened its partnership with both the County Administrative Office and the County Auditor's Office through monthly financial meetings and regular information sharing to promote transparency, accountability, and open communication.
Regarding recent personnel changes, HHSA Director Christy Coleman clarified that the chief fiscal officer position, added in 2024, was eliminated as part of a necessary organizational restructuring to improve efficiencies by eliminating duplicative roles. Administration Branch Director Erinn Watts, who holds a Master of Public Administration with a concentration in Public Financial Management, absorbed the chief fiscal officer’s responsibilities.
Beginning in 2025, HHSA engaged experienced outside professionals to assist with evaluating both the agency's budget and Social Services fiscal operations. Two former HHSA branch directors, Leanne Link and Tracy Tedder, have worked alongside current administrative and fiscal staff to support development of the annual budget, review Social Services claiming processes, and provide fiscal training. In addition, an extra-help retiree with decades of experience in Social Services County Expense Claim (CEC) has been assisting the fiscal team to ensure HHSA is maximizing all eligible state and federal reimbursement opportunities.
California counties continue to face unprecedented fiscal pressures. Meanwhile, county associations across the state are actively advocating for increased state and federal funding because existing funding levels are no longer sufficient to sustain the growing demand for essential health and human services.
HHSA has responded to an increasingly bleak fiscal outlook by aggressively reducing costs while continuing to deliver essential services to the community. Over the past nine months, the agency has:
- Reduced Social Services expenditures by an average of approximately $1.28 million per month between October 2025 and May 2026
- Implemented hiring freezes
- Re-negotiated contracts with vendors to reduce contract expenses
- Downsized the HHSA vehicle fleet
- Asked all staff for cost-saving ideas
- Reduced office supply expenditures
- Reduced travel and training costs
- Initiated the process of reducing leased space and consolidating offices
- Initiated the use of the County’s Voluntary Time Off Without Pay program
Hiring freezes, deleting and holding high-level positions vacant, reducing lease costs, contract reductions, as well as overall office-related expenditure reductions, will continue into the current fiscal year, with additional cost-saving measures already planned.
HHSA remains committed to responsible stewardship of public resources, transparency with the Board of Supervisors and the community, and continuous improvement of its financial operations. HHSA will return to the Board of Supervisors in August 2026 for a presentation on changes related to HR 1, or the “Big Beautiful Bill,” and later in 2026 to give an update on expenditure reductions.
While the fiscal challenges are significant, the agency has already implemented meaningful reforms and will continue pursuing every opportunity to strengthen its financial position while protecting services for Shasta County residents.
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