Supervisors acknowledged the emotional and financial difficulty of this year’s budget cycle. One supervisor described the process as exhausting and even depressing, stating that the county’s ability to provide true safety and stability has been compromised by forces outside their control. The frustration was intensified by recent national events involving the deployment of military force during civil unrest and what some see as growing hostility toward vulnerable populations.
The budget includes the elimination of approximately 273 full-time positions, with 37 of them currently filled and at risk of layoffs. Most of the job reductions are concentrated in the county’s Health and Hospital System, which makes up nearly one-third of the overall budget. These cuts are part of the county’s plan to manage a projected $476 million shortfall over the next five years. Despite the constraints, the board approved $18 million in one-time transfers for capital improvements and added $2.5 million in support for gender-based violence services.
A large portion of this year’s budget growth is tied to the county’s $175 million acquisition of Regional Medical Center. The hospital’s prior owner had significantly reduced trauma, cardiac, and stroke care services, prompting the county to intervene and maintain access to emergency care for communities heavily reliant on public health coverage.
Supervisors also approved $7 million in community grants distributed among 376 nonprofit and grassroots organizations. These “inventory items” are intended to support a range of community services, from immigration legal aid to homelessness prevention and family support. In recent years, the board has shifted toward awarding smaller amounts to a broader array of recipients to ensure greater outreach.
Yet, the most pressing challenges are still to come. The current budget does not yet reflect possible sweeping reductions in federal and state social programs. County officials fear significant cuts to key safety net programs, including the Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF). Congress is advancing proposals that could result in the loss of up to $70 million in federal funding, which would directly impact the county’s ability to maintain its core services.
The state is also introducing new pressures. Recent budget proposals include reinstating a $2,000 asset cap for Medi-Cal eligibility and ending coverage for undocumented residents—measures that would reverse recent expansions aimed at improving healthcare access. Although some lawmakers are resisting these rollbacks, the uncertainty has placed county leadership in a difficult position as they attempt to plan for the next fiscal year.
To counter these projected losses, Santa Clara County plans to rely more heavily on its general fund—the county’s main source of flexible revenue. That money will be used to backfill critical programs expected to lose external support. Supportive housing services, facing the largest potential federal cut of $24 million, will receive priority funding, followed by the Public Health Department with an anticipated $19 million loss. Behavioral health programs, the Social Services Agency, and the District Attorney’s Office are also preparing for budget shortfalls and will rely on local support to continue operations.
Supervisors described the process as one of cutting shallowly but broadly, aiming to preserve the county’s values and mission without causing irreversible harm to any one department. The budget approval marked a first for two new supervisors, both of whom expressed concern about the long-term financial outlook. They emphasized the county’s commitment to equity and public service but warned that current conditions are far from normal.
The road ahead remains uncertain. While the $14 billion plan aims to shield essential services from the brunt of external funding cuts, much depends on final decisions from federal and state governments. Until then, the county will continue navigating a complex financial landscape, using its limited resources to preserve the programs that residents depend on most.
