The Santa Clara County Board of Supervisors this week adopted a fiscal year 2024-25 budget that closes a $250 million revenue shortfall while maintaining key public services, according to county officials.
The adopted $12.5 billion budget—approved by the board on June 11—also prevents any of the current shortfalls from carrying over into next year.
“We are facing trickle-down impacts from the state and federal levels, along with a private sector actor that is pushing its social responsibilities to the local government,” County Executive James R. Williams said. “But, unlike a for-profit business, we must find a way to operate that maintains our commitment and support for the residents who need us most. During difficult times like these, organizations like ours have to show perseverance and ingenuity so we can protect the safety net services that hold our community together.”
Over the next year, the county is bracing for a number of continuing challenges, including state cuts to county programs in the face of its multi-billion-dollar structural deficit, according to county staff. Additionally, the county expects to absorb impacts from the proposed closure of trauma and downgrading of stroke and STEMI (heart attack) services at Regional Medical Center in East San José in August.
For the fiscal year that begins July 1, county staff said the budget maintains critical core services and public programs, and in some cases, expands services in key areas aligning with board priorities that include expanding behavioral and medical care access and quality; increasing access to housing; and strengthening community safety and reforming criminal justice.
“Despite very serious budget challenges this year, I’m proud that our budget makes critical investments in improving services for our most vulnerable children and families,” District 1 Supervisor Sylvia Arenas said. “Funding the expansion of the Child Advocacy Center to Morgan Hill in particular will ensure that children who have been abused in South San Jose and South County receive health care, support, protection, and justice under one roof and in their own community.”
A variety of capital projects are also included in the 2024-25 budget, including $40 million for seismic improvements to Santa Clara Valley Medical Center and $60 million for Valley Health Center San José, which will provide a variety of health care services to the community.
Additional notable investments in the 2024-25 budget, according to county staff, include:
- Expanding access to mental health services by reallocating general fund resources and staff and leveraging federal and state funding in a more effective manner.
- Funding positions in Santa Clara Valley Healthcare and the Office of the District Attorney to expand certain services, including in Morgan Hill, which will also be home to the South County Child Advocacy Center.
- Continuing to build new permanent housing projects, invest in rapid rehousing programs, and play a critical regional leadership role addressing homelessness under the leadership of the Office of Supportive Housing, which is now becoming a standalone department.
- Allocating new funding for priorities such as agricultural worker housing.
- Targeting investments to expand sustainability projects and programs that will yield long-term fiscal savings to the County, while fulfilling civic duty to address the global climate change crisis.
- Proactively advancing equity and inclusion across all operations, policy, and budget decisions.
- Laying the foundation for longer-term, transformational strategies currently in development, such as the design and implementation of a Countywide Racial Equity Strategic Roadmap.
“While I am relieved that we have been able to deliver a balanced budget that maintains our service levels for the most vulnerable residents, secure our core budget priorities and protect the jobs of county employees, I don’t believe we are out of the woods,” Board President and District 4 Susan Ellenberg said. “The real test will be in the coming years, so our continued prudence and collaboration in how we steward our residents’ tax dollars will be critical.”
