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Board directs staff to explore state legislation to enable local revenue options amid looming federal and state cuts
Summary
Facing possible deep federal and state funding reductions, the Board instructed county staff to work with the Sacramento delegation and other stakeholders to identify state legislative changes that would permit new local revenue mechanisms to support critical county services.
The Board of Supervisors voted Tuesday to direct county staff to work with Santa Clara County’s Sacramento delegation and local stakeholders to identify state legislative changes that would permit the county to consider new local revenue sources to support essential services.
President Lee opened the discussion noting the county faces “potentially devastating” cuts from federal and state proposals affecting Medicaid and other safety‑net funding. County staff earlier briefed the Board on a U.S. Senate proposal that would sharply limit federal Medicaid supplemental payments and provider tax mechanisms, creating significant risk for county health revenues.
Supervisor Leila Young (as recorded) moved that staff work with the county’s Sacramento delegation to identify what state statute changes the county would need to enable locally raised revenue for critical services; that motion was broadened and approved with a friendly amendment to direct staff to also consult city, state and community partners and bring back viable revenue options likely to gain support. The motion passed unanimously.
Board members stressed that exploring new revenue options does not supplant efforts to find operational efficiencies. Several supervisors urged staff to combine cost‑savings reviews with revenue exploration and to prioritize options that target wealthier taxpayers and large corporations rather than broadly raising the tax burden for working families. Public commenters offered mixed reactions: some urged an emphasis on internal efficiencies and program cuts before tax increases; several advocates asked the county to consider targeted taxes on ultra‑high net‑worth individuals and multinational corporations.
County executive staff said the direction is an initial, time‑sensitive step: with the state legislative calendar moving quickly during summer recess, the county risks missing a window to seek enabling legislation in the current session. Staff will report back to the board with a menu of legislative vehicles and stakeholder feedback, and will identify potential legal and implementation constraints for each option.
