The gap shrinks 96.7%, but the revenue side does most of the work
Kern County’s Public Works Internal Service Fund recorded a $6,235,804 operating loss in 2024–25. The adopted 2025–26 budget pares that planned loss to $203,055—a 96.7% reduction—by increasing operating revenue more quickly than operating expenses.
Operating revenue rises from $74,267,623 in the latest actual year to $94,903,492 in the adopted plan, a $20.6 million or 27.8% increase. Expenses rise from $80,503,427 to $95,106,547, a $14.6 million or 18.1% increase. The $6.0 million improvement in the gap is therefore a pricing-and-volume assumption as much as a spending plan.
What’s the Scoop With Broach derived those changes from printed pages 322–323 of the adopted county budget. Internal-service funds bill other public departments. A higher charge here can appear as a higher cost elsewhere in the county ledger, so the fund cannot be evaluated as if its service-charge revenue were outside money.
| Measure | 2024–25 actual | 2025–26 adopted | Change |
|---|---|---|---|
| Operating revenue | $74,267,623 | $94,903,492 | +27.8% |
| Operating expenses | $80,503,427 | $95,106,547 | +18.1% |
| Operating loss | $6,235,804 | $203,055 | 96.7% smaller |
Nearly every adopted revenue dollar is a service charge
The county budgets $94,743,392 in charges for services, 99.8% of the fund’s operating revenue. Use of money and property contributes $160,000 and miscellaneous revenue $100. That makes the forecast unusually sensitive to the volume and rates charged to county customers.
On the expense side, salaries and employee benefits rise from $67,738,255 to $79,485,168, or 17.3%. Services and supplies rise from $11,997,083 to $13,567,161, or 13.1%. Other charges increase from $768,089 to $1,272,218, while the adopted plan adds a $782,000 contingency.
After $215,000 of nonoperating revenue, the budget shows just $11,945 of income before capital assets and transfers. It also includes $925,000 in capital assets and $1,780,327 in transfers in, ending with planned net assets of $9,479,474. The tiny pre-capital surplus underscores how closely the operating plan is balanced.
A balanced forecast is not evidence of service performance
The figures establish that the county adopted a large increase in interdepartmental service revenue and expects it to nearly eliminate the prior operating gap. They do not show whether customers will receive more road maintenance, more engineering hours or simply higher allocated rates.
The budget table does not publish workload units, rate schedules or a reconciliation of services billed by department. Without those records, the revenue increase cannot be separated into price, activity and accounting-allocation effects. Nor does the document prove that the 2024–25 loss will recur; it is the latest actual comparison point.
A responsible follow-up is to match the internal rates and workload report to year-end billings. This investigation contributes the gap-reduction calculation and identifies the revenue assumption carrying it. It does not characterize the higher charge as waste or savings. No interviews were conducted.
Sources and further reading
Kern County FY2025–26 Adopted Budget — Public Works Internal Service Fund, printed pp322–323 ↗