In a year with bleak financial projections, the Santa Clara County Board of Supervisors this week gave their stamp of approval on the $12.5 billion budget, closing the previously projected $250 million deficit.
The 2024-25 fiscal year budget faced challenges from the start as labor costs continued to outpace revenues. The cost of salaries and benefits were expected to rise by $488 million from last year to the 2024-25 budget. But county officials were able to close the $250 million gap through a series of new revenue sources and reductions.
Still, challenges lie ahead as the county expects the state to cut funding due to its own multi-billion deficit. The county’s healthcare system is also bracing for the impact of Regional Medical Center closing its trauma center and downgrading other life-saving programs.
“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 Williams said in a news release. “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.”
Among the many priorities outlined in the budget are a sizable chunk for seismic improvements in the county’s healthcare system — $40 million at Santa Clara Valley Medical Center and $60 million at Valley Health Center San Jose.
The budget also expands access to mental health services, adds new funding for agricultural worker housing and increases investments in sustainability projects and programs, among other priorities.
Despite it being on the chopping block last month, Special Olympics Northern California was also able to obtain the necessary funding for its operations in Santa Clara County.
Board Presidents Susan Ellenberg said in a statement while she’s “relieved” that the county was able to balance its budget and maintain “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.”
“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,” Ellenberg said.
The county has projected a $158 million deficit for the 2026-27 fiscal year.