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County adopts foundational budget principles as staff begins work to close a multiyear structural gap
Summary
Facing a projected FY2026 shortfall of about $23 million (not counting potential HR 1 impacts), the board endorsed principles prioritizing legal mandates and the safety net, shifting costs from general fund, and building long-term fiscal capacity while staff pursues short-, medium- and long-term options including freezes, fee studies, and revenue measures.
Santa Cruz County officials presented foundational budgeting principles on March 10 to guide development of the FY 2026-27 proposed budget amid a projected multiyear structural shortfall. Staff outlined short-term actions already taken—such as a hiring and travel freeze—and medium- and long-term strategies including fee and cost-recovery studies, revenue measures (including a state-level emergency sales-tax authorization bill), strengthened advocacy on HR 1…
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