Santa Clara County supervisors took their first step toward adopting a $14 billion budget that weighs the region’s critical services against federal funding losses under President Donald Trump.
After weeks of workshops and hearings, supervisors tried to close their budget talks on a high note. But their unanimous vote Thursday – with the final one expected June 17 – comes as Congress advances budget proposals that could cost the county up to $70 million.
Supervisors couldn’t avoid mentioning how the deployment of U.S. military to crack down on escalating nationwide immigration protests, and the handcuffing of a U.S. Senator, have cast a pall over their efforts to protect the region’s social safety net. Supervisor Susan Ellenberg described this year’s budget process as “difficult and at times just deeply depressing.”
“I remember in past years feeling a little bit more elated and energized when we approved the budget. This is really a tough year. Part of the reason today it’s so hard is that I feel we are not providing the safety, stability and healing at the full level that I … want to,” Ellenberg said.
The approved budget would cut nearly 273 full time positions, 51 of which were filled in May. But now only 37 are filled and could be laid off to absorb the federal cuts and county budget shortfall, which is estimated to swell to $476 million over the next five year
A majority of the cuts will happen in the health and hospital system, which is 30% of the county’s budget. Supervisors didn’t stray too far from Williams’ formal recommendations in May – aside from a few changes. Those changes include $18 million in one-time fund transfers for capital improvement projects, as well as a $2.5 million increase for gender-based violence services.
The budget doesn’t reflect what county leaders fear to be “potentially devastating” cuts by federal and state officials to a range of social services, such as Temporary Assistance for Needy Families (TANF) and the Supplemental Nutrition Assistance Program (SNAP). The board of supervisors will likely tackle those cuts over the next fiscal year once state and federal budget processes are finished.
The county’s $175 million purchase of Regional Medical Center largely drove up this year’s budget increase. The county purchased the hospital after its previous for-profit owner, HCA Healthcare, slashed life-saving trauma, heart attack and stroke services serving East San Jose residents who are largely on public health plans.
Supervisors also approved a total of $7 million in one-time community grants and sponsorships – known as “inventory items” – to 376 local nonprofits and community organizations. Over the years, supervisors have decreased individual grant amounts in favor of expanding the number of awardees. The recipients range from immigration legal defense groups to homelessness resource networks.
“Let’s not confuse it – it’s definitely Latinos and Mexicans, specifically, that are targeted in this country as scapegoats,” Supervisor Sylvia Arenas said at the meeting.
The county’s financial worries didn’t just come from Trump.
Gov. Gavin Newsom has pushed additional state cuts to Medi-Cal in a mid-May budget revision for fiscal year 2025-26 — independent of the cuts the Trump administration might make. One of Newsom’s most striking proposals was to end Medi-Cal for undocumented residents and re-establish an asset cap of $2,000 to quality. The asset cap was eliminated in 2024. But state lawmakers in Sacramento have pushed back in a recent legislative proposal.
The county will propose using taxpayer dollars out of the general fund, its largest source of discretionary spending, to keep its most critical but federally reliant services running at a baseline level.
Most of the backfilling will go to supportive housing services, which will see the steepest federal reduction hit at $24 million in losses, followed by the Public Health Department at $19 million. The Social Services Agency, Behavioral Health Services and District Attorney office will also see hits to their budgets and rely on general fund support.
“This was a hard budget to cut into. After a decade of unprecedented growth at the county organization, we find ourselves passing a balanced budget with shallow cuts across the board, focused on the north star of adhering to our values and the mission of this county,” Supervisor Betty Duong said at what was her – and Supervisor Margaret Abe-Koga’s – first ever budget vote. “It is not a normal time.”
Contact Brandon Pho at [email protected] or @brandonphooo on X.
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