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The Santa Clara County Board of Supervisors is dealing with a $470 million budget shortfall due to federal cuts and minimal state support. San Jose Spotlight file photo.<\/p>\nThe Santa Clara County Board of Supervisors is dealing with a $470 million budget shortfall due to federal cuts and minimal state support. San Jose Spotlight file photo.<\/p>\n
Santa Clara County leaders are looking at a $470 million deficit in the upcoming fiscal year \u2014 forcing the largest midyear budget adjustment in more than a decade as they look to close $200 million of the gap.<\/p>\n
The Board of Supervisors voted unanimously Tuesday to reshuffle 60 employees \u2014 mostly out of the public hospital system \u2014 to other county roles without laying them off. County leaders in total eliminated 365 full time positions, of which 305 are unfilled across several departments. Officials have also found $60 million in additional revenue projections to help cut down the budget shortfall for fiscal year 2026-27.<\/p>\n
That still leaves a remaining \u2014 and difficult \u2014 gap of roughly $270 million to address in the upcoming budget process.<\/p>\n
\u201cThese are very tough cuts,\u201d Board President Otto Lee,\u00a0 who represents District 3, said to county employees at the meeting. \u201cYou\u2019ve gone through all these (departments) to find places for those who have been affected and fill positions so that no one in this county is being laid off.\u201d<\/p>\n
This significant shortfall comes even as county leaders\u00a0successfully campaigned for a voter-approved<\/a>, five-eighths cent sales tax increase, known as Measure A, which is expected to bring $330 million in extra revenue per year until it expires in 2031. The measure was introduced to offset the impacts of unprecedented\u00a0federal spending cuts<\/a>\u00a0under H.R. 1, President Donald Trump\u2019s \u201cOne Big Beautiful Bill.\u201d<\/p>\n \u201cOnce we were able to recognize the overwhelming magnitude of these unprecedented federal cuts and impact they would have, we put forward a three-part strategy to bridge this extraordinary gap,\u201d County Executive James Williams told San Jos\u00e9 Spotlight.<\/p>\n Measure A was one part of that strategy. But even with the cushion of the voter-approved revenue, county leaders expect their structural deficit to\u00a0balloon over the next several years<\/a>. The 2027-28 fiscal year is projected to pose even more pain, with another\u00a0$500 million in funding losses<\/a>\u00a0expected. Salary and benefits for county employees are also going up due to future pension obligations, contributions for retiree health and substantial increased costs for health insurance.<\/p>\n District 4 Supervisor Susan Ellenberg said the numbers would be worse if the county didn\u2019t have the foresight to \u201cdial back\u201d certain expenses several years ago.<\/p>\n \u201cWe saw the economy turning. We saw those years of enormous and exponential growth in property tax revenue slowing down and, frankly, as dire as the situation is right now, I think without the choices we made over the last couple years it would be exponentially worse,\u201d Ellenberg said at the meeting. \u201cI know that\u2019s not very comforting for most folks, but as we move through this process, it will be important to keep all stakeholders \u2014 patients, clients, service program recipients, community partners, county employees and the public \u2014 clearly and consistently informed about any changes that could affect them.\u201d<\/p>\n District 5 Supervisor Margaret Abe-Koga questioned why the county\u2019s lobbying team,\u00a0the Office of Intergovernmental Relations,<\/a>\u00a0would see a $1 million spending increase while other departments face cuts.<\/p>\n \u201cIn light of the cuts we\u2019re looking at, it\u2019s hard for me to support adding money into something like (the lobbying office),\u201d Abe-Koga said at the meeting. \u201cAs elected officials, I found the most effective advocacy going to Sacramento is using us. I know we\u2019re all busy, but I think we have relationships with our legislators so I would look (for it) to be more utilized.\u201d \u201cIt is a one-time investment and an effort we believe has the potential to pay significant dividends,\u201d Williams said.<\/p>\n Williams said lobbying the state is one of the county\u2019s most vital strategies.<\/p>\n \u201cWe need to make sure the state steps up and does its part to ensure the 6% of hospitals in California that are public \u2014 and which provide more than 50% of the burn and trauma care in the state and form the backbone of health care for all Californians \u2014 is able to continue to deliver that service,\u201d Williams told San Jos\u00e9 Spotlight.<\/p>\n
<\/a>Williams said he\u2019s reached out to each supervisor\u2019s office to schedule strategy briefings along those lines. He said the spending increase is to ramp up efforts to help\u00a0state lawmakers<\/a>\u00a0realize the importance of Northern California\u2019s largest public hospital system \u2014 and push for more funding to offset the county\u2019s fiscal woes.<\/p>\n