One of the major outcomes of the budget proposal is the elimination of 279 full-time positions across county departments. However, only about 80 of those positions are currently filled. Most have remained vacant even though funds were set aside to support them. County leadership has stated that through a combination of hiring freezes, retirements, and departmental transfers, the number of actual layoffs could be further reduced before the new fiscal year begins in July.
Officials emphasize that the budget was crafted with precision to avoid significant disruptions. According to one county supervisor, the goal was to preserve as many active roles as possible, acknowledging that if service demand increases, the county would need to unfreeze positions and find funding to refill them.
The largest concentration of job cuts — 119 positions — is in the county’s health and hospital system, which consumes nearly 30% of the proposed $13 billion budget. These reductions are expected to impact patient care by limiting capacity and services. For example, the elimination of a psychiatrist position within Custody Health Services may weaken the county’s ability to support incarcerated individuals transitioning back into the community. This concern is amplified by the rising number of in-custody deaths, which reached a two-decade high last year.
Still, the budget also includes new investments in specific areas. The county is planning to create 31 new custody health positions to enhance mental health and pharmacy services during overnight hours, from 11 p.m. to 7 a.m. This step is intended to close gaps in care and improve safety in correctional settings.
Another key change is the proposed elimination of the Psychiatric Emergency Response Team (PERT), which currently pairs mental health clinicians with law enforcement officers to respond to psychiatric crises via 911 calls. This move has been welcomed by several mental health reform advocates who believe law enforcement should not be involved in crisis interventions, as their presence can escalate situations and increase the risk of harm.
Instead, the county is redirecting resources toward the Trusted Response Urgent Support Team (TRUST), a non-police alternative developed in collaboration with community activists. TRUST is designed to deliver compassionate, trauma-informed responses without the involvement of armed officers. Advocates for the program have praised the decision to expand it, although some have expressed concerns that it remains too invisible to the public and needs broader awareness and outreach to achieve its full potential.
Beyond mental health services, the county’s housing support systems are also under pressure. A reduction of approximately $4.7 million in state welfare grant funding is expected to severely limit the CalWORKS housing support program, which helps homeless or at-risk families and disabled individuals secure stable housing. While the program currently supports about 110 families, the loss in funding means new applicants will be turned away.
This comes on top of a projected $70 million reduction in federal funds, which the county must offset using general fund dollars — its main pool of discretionary taxpayer revenue. The Office of Supportive Housing, expected to lose about $29 million in federal aid, will be fully backfilled by general fund allocations to prevent service disruptions.
County leaders have voiced frustration about what they view as diminishing support from federal and state governments. One supervisor described the shift in funding priorities as an abandonment of local needs, forcing the county to absorb costs once covered by national programs. This has put additional strain on local decision-making as officials try to preserve core services while building reserves for future uncertainties.
Despite these challenges, county officials remain cautious about making changes to the delicate budget structure. Some supervisors noted that although they are concerned about specific cuts, they are hesitant to propose adjustments without clearly identified funding sources. The balancing act between fiscal responsibility and service preservation remains the central tension heading into the final adoption of the budget.
As Santa Clara County prepares to navigate another year of financial instability, the decisions made today will shape how healthcare, housing, and crisis response services are delivered in the future. Leaders hope to adapt without sacrificing the programs that provide safety, dignity, and opportunity to those who need them most.
