TO: Board of Supervisors
FROM: Jennifer Yasumoto, Director of Health and Human Services Agency
REPORT BY: Jennifer Yasumoto, Director of Health and Human Services Agency
SUBJECT: Resolution Authorizing the Director of Health and Human Services Agency to Enter into a Contract with Napa Valley Community Foundation for the Provision of Emergency Food Assistance
RECOMMENDATION
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Adopt a Resolution to temporarily suspend the County’s approved Budget Policy Guidelines and allow for a partial backfill of a food assistance program for qualified CalFresh recipients; authorize Director of Health and Human Services Agency to sign an agreement with Napa Valley Community Foundation to provide emergency food assistance for up to $500,000 per month for two months through December 31, 2025 unless State or Federal funding is restored; and approve a related Budget Amendment. (Fiscal Impact: $1,000,000 Expense; General Fund-Tobacco Settlement; Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
States have been notified of impending disruption to Supplemental Nutrition Assistance Program (SNAP) benefits - known as CalFresh in California - effective, Saturday November 1. This crisis stands to impact millions of Americans and over 5.5 million low-income Californians who will be cut off from these benefits. Each month California issues approximately $1.1 billion in federal CalFresh benefits to eligible residents to purchase food. The CalFresh program is one of California’s largest social safety net programs and is regarded as one of the most effective tools to combat poverty and food insecurity.
In Napa County, approximately 6,600 households and 10,700 residents rely upon CalFresh benefits to feed themselves and their families and the total monthly distribution amounts to approximately $1.9 million. Being cut off from these benefits leaves Napa County households and residents - over 60% of whom are children and older adults - without the ability to purchase food. Put another way, CalFresh benefits are a lifeline for 1 in every 12.5 residents in Napa County.
When access to food benefits is cut off, there is a direct negative impact on the lives of our residents that worsens hunger and physical health, increases financial hardship, and causes undue stress. More broadly, there is a ripple effect on the local economy through revenue losses, an increase in food insecurity, higher demand placed on the emergency food system, and a negative impact on community health.
That background in mind, the request before the Board for approval is to utilize Tobacco Master Settlement Agreement (MSA) funds to mitigate the detrimental impacts to residents who rely upon these essential benefits. The funds will be used to provide a concrete resource to CalFresh households so they can purchase food for themselves and their families through grocery store gift cards that approximate the experience of using CalFresh EBT cards. Napa Valley Community Foundation (NVCF) has agreed to provide the backbone support necessary to operationalize a distribution of this magnitude through a network of community-based providers who are trusted messengers, and who have deep partnerships with HHSA who will work in tandem to support this rollout and needed program verifications.
The County receives proceeds annually from the National Tobacco Master Settlement Agreement and designates the monies for community health assistance grants. The reserves totaled $7.8 million on July 1, 2025 and are projected to total $6.6 million at the end of the fiscal year per the adopted budget. Additional draws will reduce the reserves to an amount ranging from $5.6-$6.6 million.
The County has an over two decades long history of designating MSA funds specifically for community health. Using MSA funds for this purpose also builds upon the connection strategically made between MSA funds and our Community Health Improvement Plan (CHIP) in the current grant cycle that runs from Fiscal Year 24/25 through 26/27. Specifically, this planed one-time use of MSA funds for emergency food assistance furthers our CHIP priority area of “Economic Stability” and the strategy to “Increase access to fresh, nutritious, and culturally and/or medically appropriate food for low-income and Latine residents.”
Additionally, using MSA funds to support our residents who are lower-income and have qualified and rely upon CalFresh benefits aligns with goals in the County’s Strategic Initiatives 2025-2030 recently approved by the Board. Specifically, under Build Healthy, Connected Communities:
“We will foster inclusive, connected, and responsive communities by advancing liability, mobility, and accessibility - creating welcoming, opportunity-rich places that adapt to the evolving needs of all people, especially those most vulnerable.”
“Strengthen equitable access to core services and opportunities that protect health, safety and wellbeing.”
The Resolution before the Board aims to address the evolving needs of our most vulnerable residents by adapting the County’s budget policy guideline to work for CalFresh recipients who will suddenly find themselves cut off from a lifeline. These are households and individuals who have done everything that the government asked of them to qualify for these benefits. They remain eligible for them. They simply cannot access them at this time. As this is a fluid situation that has quickly emerged and information may change at any point, the attached Resolution provides the necessary flexibility and time to finalize the execution of a contract within parameters approved by the Board.
Requested Actions:
1. Adopt a Resolution to temporarily suspend the County’s approved Budget Policy Guidelines and allow for partial backfill of a food assistance program for qualified CalFresh recipients and to authorize Director of Health and Human Services Agency to sign an agreement with Napa Valley Community Foundation to fund the assistance for $500,000 per month for two months through December 31, 2025 unless State or Federal funding is restored; and
2. Approve a Budget Amendment to increase General Fund-Tobacco Settlement Support and Care of Persons Expense (1055000-53500) totaling $1,000,000 from Assigned Fund Balance.
FISCAL IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Where is it budgeted? |
Revenue and expenses from the National Tobacco Master Settlement Agreement are budgeted within the General Fund Tobacco Settlement subdivision 10550. |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Federal funding interruptions to SNAP will leave residents without the ability to purchase groceries; these actions will mitigate the harm caused by the disruption. |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
None |
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Consequences if not approved: |
1 in 12.5 residents who are CalFresh recipients will not have access to a concrete resource that mitigates the cut-off of benefits to purchase food for themselves and their families. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.