Board accepts proposed FY25‑26 budget; public and staff press to preserve HSA labs, suicide‑prevention post and programs for women

Board accepts proposed FY25‑26 budget; public and staff press to preserve HSA labs, suicide‑prevention post and programs for women

The Santa Cruz County Board of Supervisors on April 29 accepted and filed the proposed fiscal year 2025–26 budget and asked staff to return with options to preserve several county health and social‑service programs after hours of public comment and departmental testimony. The boardvoted unanimously to accept the budget and to direct staff to identify ways to maintain X‑ray/lab services, the suicide‑prevention coordinator position, and community contracts that support programs such as Gemma and MH CAN (Mental Health Client Action Network).

Why it matters

The proposed budget would reduce staffing and services in the countyHealth Services Agency (HSA), which provides clinics, behavioral health and other health programs for residents who often cannot get care elsewhere. HSA leaders and unions warned the cuts would hurt access to urgent diagnostic services and mental‑health supports; frontline workers and former clients told supervisors they feared increased suffering and more pressure on emergency rooms and law enforcement.

What the board received and decided

Carlos Palacios, county executive officer, and Assistant CEO Nicole Coburn presented budget highlights. The proposal is a $1.23 billion countywide spending plan with a general‑fund component of about $793 million. Staff summarized major constraints: $90 million in unresolved FEMA/disaster reimbursements, declines in some state and federal health revenues and uncertainty at the federal level that could produce further cuts. The plan allocates about $6.9 million to general‑fund contingency and proposes a reduction in HSA of about $8.98 million and 74.4 full‑time equivalent (FTE) positions. Staff said most of the HSA reductions reflect programmatic revenue declines, changes to Medi‑Cal/CalAIM reimbursement, and other grant reductions; HSA warned it may need layoffs effective June 30 if alternate funding is not found.

Board action: The board voted unanimously to accept and file the proposed FY25‑26 budget and directed staff to return with options to preserve X‑ray/lab services, the countysuicide‑prevention coordinator, and community contracts supporting the Gemma program, MH CAN and the Justice & Gender Commission. (Vote: 5–0.)

Key details from staff and unions

- Total budget: $1,230,000,000 (countywide). General fund budget ~ $793,000,000. - HSA proposed reduction: ~$8,980,000 and 74.4 FTEs (staff said about 63.6 of those are currently vacant; roughly 11.6 are filled positions that could be affected). Staff noted HSA revenue shortfalls including an $11.1 million reduction in Medi‑Cal reimbursements and a 34% reduction in some behavioral‑health revenues. - Contingency and reserves: Proposed general‑fund contingency $6.9 million; general‑fund reserves ~$98.1 million (about 12.7% of general fund, below peer average noted in staff materials). - Capital / debt: Staff noted nearly $90 million in outstanding FEMA/Caltrans reimbursements from prior disasters that continue to drive debt costs.

Public comment and front‑line testimony

More than fifty speakers addressed the board during the extended public‑comment period. A large portion of testimony focused on proposed HSA service reductions: - MH CAN (Mental Health Client Action Network), Gemma House (womentransitional housing) and the Justice & Gender Commission (JAG) drew repeated appeals from staff, clients and community organizations to restore or find replacement funding. Former clients and employees described the programs as lifelines for people returning from incarceration or experiencing homelessness. - Clinic and lab staff said ending county lab and X‑ray services would delay diagnoses for patients who cannot reach commercial draw sites and would shift costs and infections into local emergency departments.

Representative excerpts (transcript): - Blair Boracious (MH CAN client): "Cutting that is gonna destroy so many people's lives...I'm somebody who is off the street today because of MH CAN." - Max (SEIU chapter president): "Personnel is…