Stanislaus County supervisors have approved the final budget for the upcoming fiscal year while addressing concerns about funding for Modesto’s Access Center Emergency Shelter (ACES). The 182-bed shelter, operated by The Salvation Army, faces uncertainty after state Homeless Housing Assistance and Prevention (HHAP) funds were excluded from California’s 2025-26 budget.
County Chief Executive Officer Jody Hayes stated that officials believe they can close the current fiscal year’s funding gap to keep the shelter open through June. However, questions remain about securing resources for ACES in the 2026-27 budget cycle, which begins July 1. “I wish BHRS could be more embedded in that facility,” Supervisor Terry Withrow said, referring to Behavioral Health and Recovery Services as a potential source of support.
The county recently issued a 180-day termination notice to The Salvation Army to allow time to explore solutions. Since opening in 2019 at D and South Ninth streets, the shelter has relied on over 20 sources of funding. According to Assistant County Executive Officer Raul Mendez, ACES currently meets one of six required performance metrics for HHAP grants, and efforts are underway to meet additional measures.
Christine Huber, director of the Community Services Agency, informed supervisors that by combining previous HHAP grant funds with $600,000 from the Community System of Care and another $930,000 in available money, operations could continue through April 2026. Without new HHAP grants in this year’s state budget, local governments will not receive those funds during the next fiscal year. The annual cost to run ACES is nearly $3.3 million. While HHAP funding may return statewide in 2026-27, it is expected to be half its previous amount.
County officials are considering converting ACES into an overnight emergency-only shelter as a cost-saving measure. Currently, ACES provides not only overnight beds but also connections to mental health services, substance abuse programs, employment assistance, and housing transitions.
Talks between county officials and Modesto city representatives are ongoing regarding future funding options. Supervisors approved a county budget reflecting flat revenue projections. Hayes noted that stagnant revenues follow years of growth and that fund balances have been reduced due to one-time expenses and workforce investments. He did not recommend spending increases for 2025-26.
Supervisor Withrow suggested increased involvement from Behavioral Health and Recovery Services at ACES could provide additional support: “I wish BHRS could be more embedded in that facility,” he said.
