Santa Clara County faces $2B federal budget shortfall amid proposed layoffs

The County of Santa Clara Board of Supervisors convened on February 25, 2025, to address pressing budgetary concerns amid significant federal funding uncertainties. The meeting highlighted a potential revenue reduction of up to $2 trillion due to anticipated congressional actions, which could impact the county's funding by approximately 30%, translating to a loss of $3.5 billion to $4 billion.

During the session, officials reported a $251 million structural budget gap for the current fiscal year, marking the first time in over a decade that the county's fund balance projections fell short. This situation necessitated midyear budget cuts, signaling a tighter fiscal environment for county operations.

Public comments revealed deep concerns from county employees, particularly from the Department of Tax and Collections. Employees urged the board to reconsider proposed layoffs of senior revenue collection officer positions, emphasizing the critical role these positions play in maintaining county revenue and supporting essential services. Speakers highlighted the increased workload and the need for adequate staffing to meet community demands, especially in light of the anticipated federal funding cuts.

The board discussed the implications of these layoffs and the importance of prioritizing frontline positions that directly serve the community. Some supervisors suggested delaying specific layoffs to reassess staffing needs during the upcoming budget process.

In addition to staffing concerns, the board addressed broader fiscal strategies, including maximizing cost recovery opportunities and exploring philanthropic partnerships to bolster funding for essential services. The discussion underscored the need for innovative solutions to navigate the challenging financial landscape ahead.

As the county prepares for potential budgetary constraints, the board's decisions will have lasting implications for community services and the workforce. The next steps will involve careful consideration of staffing and funding strategies to ensure the county can continue to meet the needs of its residents amidst ongoing economic challenges.