Funding to Significantly Reduce Legacy Debt Burden on County Services

SACRAMENTO – On July 1, 2022 Assemblywoman Megan Dahle (R-Bieber) announced her successful procurement of $5 million to significantly reduce a longstanding legacy debt inherited by Modoc County which has disproportionately impacted its residents for decades. 

Modoc County had a longstanding hospital that operated under county control until a little over a decade ago, when it was transitioned into a special district. With the formation of a special district, Modoc County was left with the hospital legacy debt. To meet the objectives of paying back this debt, the county sustained 20-25% cuts to general fund departments, consolidating operations and reducing staff in multiple departments. The county has paid back nearly 30% of this debt over the last 12 years, but it was not without severe hardship. The legacy debt payback has had a negative effect on schools, public safety, and roads in the county.

“It is vital that all counties in the 1st Assembly District are prosperous. Rural and frontier counties in California are just as important as urban counties. As your Assemblywoman, it is my duty to advocate on your behalf,” said Dahle. “I want the residents of Modoc County and the communities I represent to know I hear you, see you and fight for you, which is why my staff and I pursued the opportunity to reduce Modoc County’s legacy debt to a manageable level. I am excited for the opportunities this will create to improve public service like public safety and education. I am deeply grateful to all who helped make this possible and to the current administration for recognizing the importance this money will have on the constituents of the 1st Assembly District.”

“The Modoc County Board of Supervisors, staff, and community are sincerely appreciative to Assemblymember Megan Dahle, members of the state legislature, and Governor Newsom for approving this funding allocation,” said Geri Byrne, Chair of the Board for Modoc County. “We especially thank Megan Dahle for recognizing the perseverance of our local public agency staff who have worked to maintain essential services over the last 12 years in context of this overwhelming hospital debt. This financial assistance is very timely as it will prevent even deeper cuts in services to the public we all serve in the face of rapidly rising interest rates and inflation which were leading to an unsustainable situation.”

The $5 million allocated to Modoc County, authorized by the Newsom Administration, will assist with the resiliency already demonstrated by the county and its leadership working faithfully for years to pay down the legacy debt and help restore important programs and services for its hard working citizens.

Assemblywoman Megan Dahle represents the 1st Assembly District in the California Legislature, which includes portions of Butte and Placer counties, along with Lassen, Modoc, Nevada, Plumas, Shasta, Sierra, and Siskiyou counties.