Santa Clara County Executive James R. Williams released a recommended fiscal year 2026-27 budget on May 1 that proposes $14.7 billion in spending while confronting unprecedented federal funding cuts, according to county staff. The recommended budget aims to prioritize essential services and protect the county’s most vulnerable residents.
The budget proposal addresses a nearly $800 million starting deficit—a shortfall that is projected to grow to more than $1 billion at the beginning of next year, says a press release from the county.
Despite these challenges, county officials said the recommended budget maintains a focus on preserving essential services—including healthcare access, public safety, housing and homelessness solutions, and behavioral health—while advancing balance and discipline in spending that ensures the county can continue to deliver vital services to the community.
“This recommended budget responds to one of the most difficult fiscal challenges our county has ever faced,” Williams said. “We are managing unprecedented federal cuts while safeguarding the essential services that thousands of Santa Clara County families rely on. We are responding with urgency, fiscal responsibility and a steadfast commitment to the people we serve.”
County officials said the local fiscal crisis is driven primarily by federal funding losses in healthcare and food assistance revenues, compounded by slower property tax growth and rising operational costs.
To close the budget deficit, the recommended budget includes “targeted cost containment, operational efficiencies and strategic revenue enhancements.” These efforts include workforce adjustments that mostly affect vacant positions, service and supply reductions and program realignments designed to preserve critical services while improving long-term sustainability, says the press release.
The county said it continues to implement a coordinated, three-part strategy to address the growing loss of federal funding, with a focus on responsible use of 2025 Measure A sales tax funds; continued operational efficiencies to reduce costs; and a strengthened partnership with the State of California.
In November 2025, local voters passed Measure A, a five-eighths of a cent (0.625%) general sales tax that is expected to generate approximately $337 million annually.
The county executive’s recommended budget allocates the full amount of 2025 Measure A revenue to support Santa Clara Valley Healthcare and offset federal reductions to Medi-Cal funding, helping to sustain hospital and clinic operations across the county.
“Our community made a clear statement about the importance of protecting access to essential healthcare when they approved Measure A,” Williams said. “The recommended budget honors that commitment and ensures that these voter-approved resources are being used to safeguard our public hospital system and maintain access to care.
“While Measure A is only able to address a portion of the federal funding gap, it provides critical local stability to help sustain the life-saving services our community relies on.”
In addition to local action, the county continues to advocate for stronger partnership with the state to help mitigate the impacts of federal cuts in order to preserve access to care, support public hospital systems and help manage the rising costs of caring for those who lose coverage, says the press release. The governor’s revised budget is expected in mid-May, and the county said it will continue to call upon the governor and State Legislature to ensure adequate funding that keeps essential services open and accessible to everyone who needs them.
“We continue to urge the state to do everything it can to mitigate the significant impacts of federal cuts to counties and public hospital systems across California,” Williams added. “Public hospitals only make up 6% of all hospitals in the state, but deliver nearly half of all trauma and burn care in California. Our public hospitals are the backbone of healthcare for all Californians, and they are lifelines the state and our region cannot afford to lose.”
The board of supervisors plays a central oversight role in shaping and approving the county’s annual budget. Each May and June, the board reviews the recommended budget through public workshops and hearings.
As part of this annual process, the board will hold budget workshops on May 11, 12 and 13. After the budget hearings conclude in June, the board will adopt a final budget.
Imagine how different Santa Clara County would be now, if Prop 187 had not been stolen after having passed.
Blaming Trump for cutting spending on illegal aliens who do not have a right to be here while California is breaking the law (8 U.S. Code § 1324). Peak Narcissistic Personality Disorder.