{"id":480624,"date":"2026-09-30T16:52:09","date_gmt":"2026-09-30T16:52:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/480624\/"},"modified":"2026-09-30T16:52:09","modified_gmt":"2026-09-30T16:52:09","slug":"santa-clara-county-fends-off-legal-challenge-to-sales-tax-increase","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/480624\/","title":{"rendered":"Santa Clara County fends off legal challenge to sales tax increase"},"content":{"rendered":"<p>A court ruling invalidates a lawsuit that claimed Santa Clara County incorrectly applied an emergency clause to Measure A that allowed the county to put the sales tax increase on the ballot as a general tax.<\/p>\n<p>California\u2019s Sixth District Court of Appeal on Sept. 23 affirmed the county Board of Supervisors\u2019 declaration that the county was in an emergency due to <a href=\"https:\/\/sanjosespotlight.com\/santa-clara-county-projects-1b-in-medi-cal-cuts\/\" rel=\"nofollow noopener\" target=\"_blank\">federal budget cuts<\/a>, enabling supervisors to put a measure on last November\u2019s ballot to increase the <a href=\"https:\/\/sanjosespotlight.com\/santa-clara-county-puts-sales-tax-measure-on-november-ballot\/\" rel=\"nofollow noopener\" target=\"_blank\">sales tax by five-eighths of a cent<\/a>. County leaders warned that without the tax increase, federal budget cuts would devastate California\u2019s second largest public hospital system.<\/p>\n<p>The ruling might signal the beginning of the end to a legal battle brought on by conservative and libertarian groups that have argued federal spending cuts don\u2019t constitute an emergency, which allows for a sales tax vote during a non-general election year.<\/p>\n<p>\u201cThis is a major victory for the county of Santa Clara, for the residents who rely on the county for healthcare and other essential safety\u2011net services and for the voters who overwhelmingly supported Measure A,\u201d County Counsel Tony LoPresti said in a statement. \u201cWith this core legal question answered, the county is one step closer to ending meritless challenges that threaten the lifesaving services our communities depend on.\u201d<\/p>\n<p>Measure A is a general tax where spending is not restricted to a specific use. The county opted not to author Measure A as a special tax, which would have legally restricted funds to hospitals. Special taxes require 66.7% voter approval \u2014 a <a href=\"https:\/\/sanjosespotlight.com\/state-prop-43-aims-to-raise-tax-measure-threshold\/\" rel=\"nofollow noopener\" target=\"_blank\">more difficult threshold<\/a> to win \u2014 whereas a general tax needs a simple majority. Measure A was passed by <a href=\"https:\/\/sanjosespotlight.com\/santa-clara-county-sales-tax-measure-ahead-in-early-results\/\" rel=\"nofollow noopener\" target=\"_blank\">57% of voters<\/a>. County leaders have <a href=\"https:\/\/sanjosespotlight.com\/santa-clara-county-faces-heat-for-political-mailers\/\" rel=\"nofollow noopener\" target=\"_blank\">characterized<\/a> Measure A as a lifeline for their massive public hospital system.<\/p>\n<p>Brian Holtz, lead plaintiff on the lawsuit and Santa Clara County Libertarian Party secretary, said the appellate court decision was expected, since the <a href=\"https:\/\/sanjosespotlight.com\/santa-clara-county-tax-measure-wins-lawsuit-stays-on-ballot\/\" rel=\"nofollow noopener\" target=\"_blank\">lawsuit<\/a> was already rejected by a Santa Clara County Superior Court judge.<\/p>\n<p>He said he plans to consult with his lawyer to see if he wants to take it further, but for now will lay low.<\/p>\n<p>\u201cI wouldn\u2019t want to be someone who develops that kind of track record of clogging up the courts with stuff that you know is not going to get through,\u201d Holtz told San Jos\u00e9 Spotlight.<\/p>\n<p>The appellate court judges said the conservative groups did not provide substantial evidence that the county wasn\u2019t facing an emergency due to federal cuts.<\/p>\n<p>\u201cAppellants offer no persuasive reason for this court to depart from these authorities,\u201d the judges wrote. \u201cOn this record, we conclude that the Board\u2019s determination of emergency was reasonable, and the resolution to place Measure A on the (Nov. 4, 2025) special election ballot was not invalid.\u201d<\/p>\n<p>The federal spending bill passed last summer stripped Medicaid funding, known as Medi-Cal in California, by $1 trillion over the next decade \u2014 the largest cut in the program\u2019s history. The cuts have caused Santa Clara County to <a href=\"https:\/\/sanjosespotlight.com\/silicon-valley-health-care-leaders-say-federal-cuts-truly-devastating\/\" rel=\"nofollow noopener\" target=\"_blank\">lose $1 billion a year<\/a>, requiring leaders to <a href=\"https:\/\/sanjosespotlight.com\/santa-clara-county-balances-budget-without-severe-service-cuts\/\" rel=\"nofollow noopener\" target=\"_blank\">reduce services and shrink programs<\/a>.<\/p>\n<p>Half of the patients in the county\u2019s hospital system pay through Medi-Cal, and one in four of the county\u2019s nearly 2 million residents are Medi-Cal enrollees.<\/p>\n<p>Holtz said he doesn\u2019t believe the county is in a state of emergency.<\/p>\n<p>\u201cThis is a very wealthy part of the country. We\u2019re in an economic upswing. The pandemic is over,\u201d Holtz said. \u201cI really don\u2019t have any sympathy for the idea of we got too dependent on federal dollars and now the federal dollars are drying up and so it\u2019s an emergency. Well, you shouldn\u2019t have been dependent on those dollars in the first place.\u201d<\/p>\n<p>The tax measure still <a href=\"https:\/\/sanjosespotlight.com\/lawsuit-challenges-santa-clara-county-sales-tax-measure\/\" rel=\"nofollow noopener\" target=\"_blank\">faces opposition<\/a> from the Silicon Valley Taxpayers Association in a second lawsuit to be heard Oct. 16 in Santa Clara County Superior Court. That lawsuit alleges Measure A is invalid because it was placed on the special election ballot last November instead of the general election this November.<\/p>\n<p>Revenue from Measure A \u2014 an estimated $330 million annually \u2014 is tied up until both lawsuits are resolved.<\/p>\n<p>The county\u2019s public hospital system is California\u2019s <a href=\"https:\/\/sanjosespotlight.com\/santa-clara-county-leaders-secure-purchase-of-east-san-jose-hospital-regional-medical-center\/\" rel=\"nofollow noopener\" target=\"_blank\">second largest<\/a>. It\u2019s a <a href=\"https:\/\/sanjosespotlight.com\/silicon-valley-health-care-leaders-say-federal-cuts-truly-devastating\/\" rel=\"nofollow noopener\" target=\"_blank\">critical safety net service<\/a> for the region\u2019s publicly-insured and uninsured patients. But county doctors have warned that hospital cuts would <a href=\"https:\/\/sanjosespotlight.com\/san-jose-mayor-signals-doubt-on-county-sales-tax-measure\/\" rel=\"nofollow noopener\" target=\"_blank\">impact everyone<\/a>, as people who lose coverage will turn to emergency departments, delaying critical care and ambulance transports at hospitals across the Bay Area.<\/p>\n<p><a href=\"https:\/\/cta-na2.hubspot.com\/web-interactives\/public\/v1\/track\/redirect?encryptedPayload=AVxigLLpG94agKIRKh43RT9zHzDdhm5RE9S0UfmUoKu2g41I464ysR6ItJM2dnlYbhYli6FiL%2F%2BDwRP6ky7NwbDQRZuxLg6MnZHAwxwxqFIHzB7utss%3D&amp;webInteractiveContentId=321838904008&amp;portalId=44356355\" target=\"_blank\" rel=\"noopener nofollow\"><img decoding=\"async\" class=\"aligncenter\" style=\"height: 100%; width: 100%; object-fit: fill;\" src=\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/09\/1790787129_298_interactive-321838904008.png\" alt=\"In-line Donation CTA 2026 (950 x 287 px)\"\/><\/a><\/p>\n<p>Santa Clara County hospitals <a href=\"https:\/\/sanjosespotlight.com\/east-san-jose-regional-medical-trauma-center-closure-could-break-santa-clara-county-hospital-system\/\" rel=\"nofollow noopener\" target=\"_blank\">routinely reach capacity<\/a>, dragging out wait times for care and appointments. At the same time, the health and hospital system has become the county\u2019s biggest focus and budget expense.<\/p>\n<p>\u201cThe voters of Santa Clara County already stepped up and said yes to protecting the health and well-being of our community,\u201d Darcie Green, executive director of nonprofit Latinas Contra Cancer, told San Jos\u00e9 Spotlight. \u201cThis decision affirms that the county was right to treat the threat to our healthcare and safety net with the urgency it deserved. That urgency is real for the patients and families we serve every day.\u201d<\/p>\n<p>Contact Joyce Chu at <a href=\"https:\/\/sanjosespotlight.com\/cdn-cgi\/l\/email-protection\" class=\"__cf_email__\" data-cfemail=\"c2a8adbba1a782b1a3aca8adb1a7b1b2adb6aeaba5aab6eca1adaf\" rel=\"nofollow noopener\" target=\"_blank\">[email\u00a0protected]<\/a> or @joyce_speaks on X.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"A court ruling invalidates a lawsuit that claimed Santa Clara County incorrectly applied an emergency clause to Measure&hellip;\n","protected":false},"author":2,"featured_media":480625,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[712,88,90,89,14533],"class_list":["post-480624","post","type-post","status-publish","format-standard","has-post-thumbnail","category-san-jose","tag-centerpiece","tag-san-jose","tag-san-jose-headlines","tag-san-jose-news","tag-santa-clara-county-board-of-supervisors"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/480624","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=480624"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/480624\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/480625"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=480624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=480624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=480624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}