Open Letter to BOS: Lessons from 2010—Balancing Nevada County’s Budget Amid 2025 Federal Cutbacks
As Nevada County stares down the barrel of another difficult budget year, it’s hard not to feel a sense of déjà vu. Fifteen years ago, in the shadow of the Great Recession, the County was forced to make painful choices. Departments were consolidated, services were reduced, and creative partnerships became a lifeline. Those years were tough, but they left us with an invaluable lesson: we can weather fiscal storms—but only if we act swiftly, strategically, and with a deep respect for our community’s priorities.
Quite honestly, the Board of Supervisors and senior County staff should have acted last year, when they first learned—before Trump was elected—that key indicators of our County’s fiscal health were heading in the wrong direction, and were projected to continue heading that way according to the County’s 2024–2025 adopted budget. Instead, Supervisors doubled down, increasing salaries and benefits by 8.5%—a reckless decision, especially given the forecasts.
These key indicators—property taxes, sales tax, real estate transfer tax, and transient occupancy tax (TOT)—were already declining, again, before Donald Trump was elected. Another critical metric, pension coverage, dropped from 76% a few years ago to just 63% today—you would think this would be alarming to County staff.
Now, in 2025, we face another storm. The Trump administration’s sweeping federal cutbacks—implemented in response to a record $36 trillion national deficit—have left local governments scrambling. Key funding streams, particularly those tied to social services, infrastructure, and emergency preparedness, are shrinking fast. Nevada County staff is once again being asked to do more with far less.
This time, however, we have the scars—and the wisdom—of 2010. Back then, Nevada County survived by prioritizing core services, deferring nonessential projects, building public-private partnerships, and cutting overhead. We must apply those same principles today, but with even greater focus on long-term sustainability: improving our economic indicators, creating workforce housing, and ensuring resilient public services.
Another positive: the Assistant CEO during the last recession is now the current CEO. Hopefully, Alison Lehman can draw upon her predecessor’s experience to restore the County’s fiscally conservative approach. Rick Haffey took a reduction in his total financial compensation package when asking others to do the same. Alison Lehman is taking home nearly half $1 million annually which is nearly a quarter million dollars more than Sheriff Shannon Moon. There are approximately 30 senior employees and elected (BOS appointed) officials making more than Sheriff and Undersheriff Sam Brown according to Transparent California.
A Strategic path forward
Restructure Strategically
Across-the-board cuts may seem fair, but they often weaken the County’s strongest areas. Nevada County must adopt a zero-based budgeting (ZBB) approach, questioning every program and every dollar spent. Budgets must be justified based on measurable community outcomes—not tradition or inertia. We should stop automatically renewing contracts with built-in increases without a full review.
Invest in Technology and Efficiency
Modernizing County operations is essential. Streamlining permitting, licensing, and reporting through digitization and centralizing accounting within the Auditor-Controller’s Office will reduce overhead, allowing the County to maintain service quality even with fewer staff. Investing in technology today will save millions tomorrow.
Strengthen Public-Private Partnerships
During the last recession, nonprofits and businesses became critical partners. That model must expand. Nonprofits can bridge behavioral health gaps, while businesses can support housing and broadband initiatives. Nevada County should deepen and formalize these partnerships, seeking both financial support and service collaboration.
Protect Vulnerable Populations
Health, housing, and food assistance programs must not bear the brunt of budget cuts. These essential services protect children, seniors, and the most vulnerable among us. Cutting them is not only morally wrong—it is fiscally shortsighted, leading to higher costs in emergency services, incarceration, and homelessness.
Engage the Public Transparently
Public input is vital. In 2010, community budget workshops surfaced grassroots solutions and built trust. In 2025, supervisors must again embrace public workshops, online budget tools, and district-level forums reaching beyond the normal county stakeholders. Transparency is not optional; it is essential for credibility and effective governance. Embrace public voices who advocate for real fiscal reform.
Offer Voluntary Separation to Reduce Payroll Costs
As personnel costs remain the largest share of the County’s budget, voluntary separation incentives should be considered. Offering employees the option to resign or retire early with up to six months of severance pay can reduce long-term payroll obligations while avoiding the disruption of widespread layoffs. Structured properly, voluntary separations preserve institutional knowledge, show respect for public servants, and allow departments to plan transitions responsibly. Departments must also identify roles that can be consolidated, eliminated, or automated.
Key Recommendations
Offer senior County staff the opportunity to resign with six months’ severance.
Eliminate telecommuting for executive and senior staff to increase accountability, collaboration, and leadership.
Board of Supervisors revert back to their compensation model of 2022 with $60,000 compensation caps.
End the CEO’s authority to issue annual bonuses of up to 10% on senior staff excessive salaries, which bloats executive compensation packages.
Streamline leadership by consolidating Community Development Agency (CDA) department heads into two roles: Director and Assistant Director of CDA, eliminating several department Directors.
Merge executive office responsibilities by combining the Assistant CEO, Public Information Officer, Facilities Management, and Information & General Services functions.
Eliminate the newly created Director of OES position.
Create a voter initiative letting citizens decide if Supervisors should serve only two terms.
County revert back to CDA permitting fees prior to the great recession of 2008 to encourage healthy growth meeting the country’s current Housing Element goals.
Conclusion
Nevada County Supervisors must correct past mistakes by burdening taxpayers with excessive compensation packages and delayed fiscal reforms. We have the opportunity—and the responsibility—to rebuild our county government that is leaner, more responsive, and focused squarely on delivering essential services with transparency and fiscally conservative prudence.
The Board of Supervisors must remember: they are the firewall along with the other six elected positions at the County building. They alone have the authority to approve or reject excessive senior staff compensations and to direct the County’s future. They must act decisively to ensure the adoption of a sustainable, balanced 2025–2026 fiscal budget this June.
The residents of Nevada County are watching. This is the Supervisors’ moment to demonstrate leadership—not through false promises—but through clear-eyed fiscal stewardship while making inroads on the same ol’ priorities and objectives year after year.
