In a yr of bleak financial forecasts, the Santa Clara County Board of Supervisors this week approved a $12.5 billion budget, eliminating a previously projected $250 million deficit.
The 2024-25 budget faced challenges from the beginning as labor costs continued to exceed revenues. Salaries and advantages costs were expected to extend by $488 million within the 2024-25 budget in comparison with last yr. But county officials were in a position to close the $250 million gap through quite a lot of recent revenue sources and savings.
Still, the county faces challenges because it faces cuts in state funding as a result of its own billion-dollar deficit. The county's health care system can also be bracing for the impact of the closure of the Regional Medical Center's trauma center and the downgrading of other life-saving programs.
“We are faced with impacts at the state and federal levels, as well as a private sector actor that is pushing its social responsibility onto local government,” County Executive James Williams said in a news release. “But unlike a for-profit company, we must find a way to do business that maintains our commitment and support to the residents who need us most.”
Among the various priorities outlined within the budget is a major amount for fundamental improvements within the county's health care system: $40 million for the Santa Clara Valley Medical Center and $60 million for the Valley Health Center San Jose.
The budget also expands access to mental health services, provides recent funding for housing for farmworkers, and increases investment in sustainability projects and programs, amongst other priorities.
Although Special Olympics Northern California was getting ready to collapse last month, the organization still managed to boost the vital funds for its activities in Santa Clara County.
Board Chair Susan Ellenberg said in an announcement that while she was “relieved” that the county had been in a position to balance its budget and “maintain levels of service to our most vulnerable citizens, ensure our key budget priorities and protect county employee jobs, she does not believe we are out of the woods yet.”
“The real test will be the coming years. It will therefore be crucial that we continue to be prudent and cooperative with our citizens' tax dollars,” Ellenberg said.
The county has projected a deficit of $158 million for the 2026-27 fiscal yr.
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