Board hears pleas as Health Services Agency outlines proposed cuts; staff to return June 10

Santa Cruz County officials presented the Health Services Agency(HSA) proposed budget on June 3, saying mandatory programs and declining grant and federal reimbursements drove an overall reduction that will require program changes. The board heard more than an hour of public testimony from providers and clients urging the county to maintain services, and supervisors deferred final action on the HSA budget to the June 10 hearing.

The proposed spending plan, presented by HSA Director Monica Morales and Assistant Director Jen Herrera, shifts revenue and staffing priorities and would reduce about 74.4 full‑time equivalent positions (many vacant) while trimming some community contracts. Morales said the package was a sober attempt to balance required services and the department—s declining revenue: "We have to do our job and bring you a balanced budget," Morales said.

Herrera described the financial drivers behind the cuts: "The factors driving our budget deficit include loss of grant funding, lower clinical revenue, low…