The adopted loss consumes more than one-quarter of the opening position
Kern County begins its adopted 2025–26 Unemployment Compensation Internal Service Fund budget with $3,697,842 in net position and ends at $2,626,185. The $1,071,657 planned decline equals 29.0% of the opening amount.
Operating revenue falls from $1,008,916 in the latest actual year to $938,890, down 6.9%. Operating expenses rise from $1,708,224 to $2,010,547, up 17.7%. Together, those shifts deepen the operating loss from $699,308 to $1,071,657, a 53.2% increase.
What’s the Scoop With Broach calculated the percentages from printed pages 330–331 of the adopted budget. The fund reimburses unemployment costs and is intended to absorb changing claims. Drawing down a balance can be a deliberate financing choice; the question is how quickly the budget uses that cushion and whether actual claims support the assumption.
| Measure | 2024–25 actual | 2025–26 adopted | Change |
|---|---|---|---|
| Operating revenue | $1,008,916 | $938,890 | −6.9% |
| Operating expenses | $1,708,224 | $2,010,547 | +17.7% |
| Operating loss | $699,308 | $1,071,657 | +53.2% |
| Ending net position | — | $2,626,185 | 29.0% below opening |
Benefit-related charges dominate the plan
Other charges rise from $1,683,499 to $1,979,083, a 17.6% increase, and account for 98.4% of adopted operating expenses. Services and supplies rise from $24,725 to $31,464. The statement contains no salaries-and-benefits line for the fund itself.
The adopted revenue consists of $893,329 in charges for services and $45,561 in use of money and property. The service charges decline even as the expense authorization rises, creating the wider planned gap.
The budget does not state the number of claims, average duration, former departments of claimants or expected reimbursement schedule. It also does not state a minimum reserve policy on these pages. That prevents a conclusion that the remaining $2.6 million is either excessive or inadequate.
The next year decides whether the draw was temporary
The record establishes a planned one-year draw equal to nearly three-tenths of the starting position. It does not establish a continuing multi-year trend. One lower-claim year or a rate adjustment could reverse the decline; higher-than-budgeted claims could accelerate it.
The appropriate accountability check is a claim-and-rate reconciliation after year-end: actual benefits paid, actual departmental assessments and the remaining net position. Repeating the same draw for three years, for example, would be very different from a single deliberate use of accumulated resources.
This investigation’s distinct finding is the 29.0% drawdown calculation paired with the opposing revenue and expense trends. It does not identify any individual former employee or allege an improper benefit payment. No interviews were conducted.
Sources and further reading
Kern County budget and finance portal ↗
Photograph source, National Archives record and federal public-domain notice ↗