Nevada County’s unfunded pension liability nearly doubled from $117 million in 2015 to $223.6 million in 2024, with no reduction plan despite warnings. Consequently, the Grand Jury criticize County leadership passivity amid rising compensation and calls for urgent structural reforms.

Nevada County’s $470M FY 2026–27 budget balances on paper but masks structural problems: reliance on one-time reserves, rising compensation, a quarter-billion-dollar unfunded pension liability, and new debt, reducing future fiscal flexibility.

In Nevada County, public employee compensation has roughly doubled to $160,000–$170,000 per worker while median household income stagnates near $79,000. Meanwhile, the county pension system’s funding has dropped sharply to 63%, ballooning unfunded liabilities and straining future budgets.