Santa Clara County updates budget amid federal funding risks and proposed cuts

The County of Santa Clara Board of Supervisors is grappling with significant budget challenges as they prepare for the upcoming fiscal year. During the budget hearing on June 9, 2025, County Executive James Williams outlined a strategic approach to address the county's financial landscape, which is heavily influenced by potential federal and state funding cuts.

Williams emphasized that the recommended budget reflects a careful balancing act amid declining general fund resources and looming federal risks. He highlighted that approximately 30% of the county's revenue relies on federal funding, primarily from healthcare programs like Medi-Cal, which faces potential cuts from a recently passed reconciliation bill in the House of Representatives. These cuts could severely impact the county's ability to provide essential safety net services, including healthcare and food assistance programs.

Budget Director Ezekiel Vega presented updates indicating that despite the challenges, the proposed budget remains structurally balanced. However, he noted that the county anticipates a significant structural deficit of around $280 million for the next fiscal year, driven by inflation and rising service costs. The budget also includes a recommendation to bolster the county's rainy day fund, recognizing the need for resilience in the face of uncertain state and federal financial support.

The board is expected to adopt the budget by June 12, 2025, but the discussions highlighted the urgent need for ongoing advocacy and strategic planning to mitigate the anticipated impacts of funding cuts. As the county navigates these financial hurdles, the focus remains on preserving critical services for the community's most vulnerable populations. The board's commitment to addressing these challenges will be crucial in the coming months as they work to balance fiscal responsibility with the needs of their constituents.