El Dorado County’s budget drama is heating up, and locals are feeling the squeeze. With a whopping $1.04 billion budget slated for 2025-2026, county officials are making cuts that could seriously impact Tahoe’s tourism-dependent communities.

The Tourism Tax Tug of War

Supervisor Brooke Laine isn’t holding back her frustration. For years, the Lake Tahoe Basin has been generating massive tourism occupancy tax (TOT) revenue, but seeing pennies on the dollar return to local services. Last year’s budget saw $11 million collected, with only $7.2 million redistributed, and now they’re predicting a 23 percent reduction.

“What we generate, we should get back in services,” Laine told local media, highlighting the real impact tourism has on infrastructure and community resources. Her analysis reveals a stark reality: the Basin has historically received just 25-28 cents back for every dollar collected.

Cutting to the Chase

The county’s recommended budget includes significant cuts ranging from $12-$15 million. Third-party agencies like local chambers of commerce, which have driven tourism outreach for two decades, have been completely defunded, a move Laine criticized as abrupt and short-sighted.

Chief Administrative Officer Tiffany Schmid maintains the budget remains balanced, fully funding emergency reserves and contingency funds. However, the budget falls short on key policy goals, including road maintenance and capital project investments.

Fighting for Local Control

Laine isn’t backing down. She’s throwing her hat in for re-election with a clear mission: “I want us to take back some power and control”. Her strategy involves redirecting TOT revenues to directly address tourism’s local impacts.

With the Board already directing staff to develop 5 and 10 percent budget reduction scenarios for the next fiscal year, the future of Tahoe’s local services hangs in the balance. One thing’s certain: this budget battle is just getting started.

For the full budget details, check out the original budget presentation