Title
Sacramento Employment and Training Agency (SETA) Operating Budget for Fiscal Year 2026/27
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FileID
File ID: 2026-01682
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Location
Location: Citywide
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Recommendation
Recommendation: Adopt a Resolution approving the Fiscal Year (FY) 2026/27 Sacramento Employment and Training Agency (SETA) Operating Budget in the amount of $137,574,447.
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Contact
Contact: Mario Maslac, Fiscal Chief, (916) 263-4020, mario.maslac@seta.net; Anita Maldonado, Ph. D., Executive Director, (916) 263-3810, anita.maldonado@seta.net; Sacramento Employment and Training Agency; Aubree J. Taylor, Development Project Manager, (916) 808-7191, ajtaylor@cityofsacramento.org, Economic Development Department
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-SETA Overview
3-Resolution
4-Exhibit A - Final Operating Budget SETA FY 2026/27
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Description/Analysis
IssueDetail
Issue Detail: In 1978, the City of Sacramento and the County of Sacramento executed a Joint Exercise of Powers Agreement (JPA) establishing the Sacramento Employment and Training Agency (SETA). Under Paragraph 21 of the JPA, the City and County must review and approve SETA’s annual operating budget before it is considered final and authorized. SETA’s proposed operating budget for fiscal year (FY) 2026/27 totals $137,574,447. This reflects a net budget Increase of $673,874 from the prior fiscal year.
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PolicyConsiderations
Policy Considerations: SETA has been a key partner on workforce initiatives with the City for delivering workforce development programs, providing employer services, community services, and childcare through the Head Start program.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act (CEQA); National Environmental Policy Act (NEPA): The proposed action is not a project under CEQA because it relates to government fiscal activities that do not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment. (Cal. Code Regs., tit. 14, §§ 15060(c)(3), 15378(b)(4)). The proposed action involves activities that are exempt from NEPA under title 24, section 58.34, of the Code of Federal Regulations.
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: The City Council must review and approve SETA’s annual
Operating budget before it is considered final and authorized. On August 3, 2026, SETA’s Governing Board reviewed and approved the FY2026/27 Final Budget
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FinancialConsiderations
Financial Considerations: SETA’s FY2026/27 operating budget of $137,574,447 will be financed by federal grants ($111,315,168), state grants ($25,278,933), and miscellaneous revenues ($980,346). Approval of SETA’s final budget will have no fiscal impact on the City’s General Fund.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable
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Background
Background SETA provides: health and education services to young children; job training and employment opportunities for adults, youth and other special populations; and delivers services by funding community-based organizations that provide programs and services to low-income communities to help combat poverty, including employment, acculturation, and social services for refugees and other immigrant populations. Additional background on SETA can be found in Attachment 2.
Approximately 80.9% of SETA’s funding is from Federal grants, 18.4% from State grants, and .7% from other local grant sources. The Federal Head Start, Federal Early Head Start, California Department of Education, and California Department of Social Services grants represent approximately 67.3% of SETA’s budget. Workforce development funds provided under the Federal Workforce Innovation and Opportunity Act (WIOA) represent another 14.4% of the agency budget. Other workforce development services are funded from the Federal Refugee Support Services (RSS), Federal Community Services Block Grant (CSBG), State Bord of State and Community Corrections (BSCC) of State CalWORKs, State High Road Training Partnership, and Federal Ticket-to-Work programs which account for 17.4% of SETA’s budget. The remaining .9% of the agency budget is from additional funding sources including Valley Vision, James Irvine Foundation, Sacramento County Next Gen funds, the California Workforce Development Board, Sacramento Municipal Utility District (SMUD), California Department of Rehabilitation (DOR), EAH Housing, and Gap, Inc.
SETA’s budget for Fiscal Year 2026/27 totals $137,574,447. This reflects a net increase in Agency funding of $673,874 from the Fiscal Year 2025/26 budget. The changes from the prior year include a net decrease of $7,408,237 from the prior year, primarily due to the completion of various Head Start-related construction projects. Head Start and Early Head Start received a 0.635% cost-of-living adjustment (COLA), resulting in an additional $455,229 in funding. SETA also received additional funding of $566,371 from the California Department of Education (CDE) and $35,890 from the California Department of Social Services (CDSS) to expand state-funded preschool and general childcare services throughout the County. Additionally, year-over-year reductions totaling $962,520 in American Rescue Plan and Coronavirus Response and Relief Supplemental Appropriations funding reflect the expiration of these one-time funding sources during or before FY 2025/26.
The Workforce Development Department budget reflects a net increase of $8,082,111 from the prior year. Workforce Innovation and Opportunity Act (WIOA) funding increased by $3,635,672, primarily due to the carryover of prior-year funding. SETA also received $8,000,000 in new funding from the Board of State and Community Corrections, along with $50,000 from EAH and $140,000 from DOR AJCC. Additional increases include $177,600 in Community Services Block Grant (CSBG) funding and $288,005 from the California Workforce Development Board’s (CWDB) High Road Training Partnership Program.
These increases were partially offset by several funding reductions, including $3,232,838 in Refugee Support Services, $42,258 from the James Irvine Foundation multi-year contract, $1,543 from Sacramento County’s Next Gen program, $54,212 from DOR for the STEPS program, $196,322 from Valley Vision TPT, $103,610 in CWDB RERP funding, and $178,730 from SMUD.
Funding for GAP, CalWORKs One-Stop Share of Costs, and Ticket to Work remained unchanged from the prior year. The limited-term Prison to Employment and Los Rios Strong Workforce grants have expired, and all associated funding has been fully expended.
SETA’s personnel budget has increased by 19 positions from the Fiscal Year 2025-2026 budget to a total of 611 regular positions for the Fiscal Year 2026/27, brought on by programmatic personnel adjustments. SETA’s personnel budget has increased by $816,754 year over year due to the addition of new positions and automatic annual step increases in staff salaries.
Head Start serves 4,136 children from zero to five years old countywide in a family focused
early learning program. Funding is provided through the Head Start, Early Head Start and the
California Department of Education and California Department of Social Services programs. Health, nutrition, and mental health screenings and follow-up are also provided to children.
The Workforce Development Department operates 13 America’s Job Centers, known as Sacramento Works throughout the county. These centers integrate employment, education, and training resources to over 30,000 customers per year. This is accomplished through grants provided by the Workforce Innovation and Opportunity Act (WIOA) in collaboration with the Employment Development Department, the County Department of Human Assistance and various nonprofit service organizations.
SETA is the designated Community Action Agency for the provision of Community Services Block Grant (CSBG) funding in Sacramento County. Programs funded through CSBG provide case management, emergency shelter, transportation, emergency food, and counseling services for at-risk youth, frail elderly, disabled persons, low-income families, and the homeless. In addition to providing resources and services through neighborhood-based organizations to the community, a portion of CSBG funds are utilized to partner with the County of Sacramento Department of Human Assistance to fund the Sacramento Call 2-1-1 information system, which provides the Sacramento region with a database of services and resources for the community, and is available twenty-four hours a day, seven days a week. Only Sacramento County residents that meet federal poverty income guidelines are eligible for CSBG services.
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