Budget Hearings Begin This Week: Share Your Priorities

Dear District 5 Resident,

This week, the County will begin hearings for the Fiscal Year (FY) 2026-27 Proposed Budget, where important decisions will be made about how public resources will be invested in the year ahead.

The FY 2026-27 Proposed Budget—a $1.29 billion spending plan, including an $844 million General Fund, was developed under one of the most difficult fiscal environments the County has faced in more than a decade. The single largest fiscal pressure is the accelerating impacts of federal policy changes, particularly H.R. 1, on County health and human service programs.

These unprecedented federal changes are reducing funding while increasing costs for essential, life-sustaining services, including health care and food assistance, that thousands of families and individuals in Santa Cruz County rely on every day. In addition to these drastic cuts, stricter eligibility requirements will further limit access to these programs.

Unfortunately, this is only the beginning. These restrictions will deepen in the years ahead with deficits expected to exceed $67 million without correction, leaving the County with less resources to meet increasing community needs.

The County cannot absorb these federal cuts all on its own. We must work with community partners, residents, and the State to identify creative and sustainable long-term solutions while maintaining fiscal stability.

Despite all these pressures, the FY 2026-27 Proposed Budget makes genuine progress while also taking difficult and necessary steps to address fiscal challenges. The balanced budget includes targeted investments to modernize County operations and advance key priorities in the areas of roads, parks, fire resiliency, and housing and economic development in District Five and across the County. It also includes $43 million in one-time funding from department trust funds and reserves, helping to protect the workforce and preserve life-sustaining essential services.

During these budget hearings, I will work to fully understand the impacts of the proposed budget and the difficult choices that lie ahead. I will focus on safeguarding access to health care, food assistance, jobs, housing and economic opportunity, while also making sure the needs of District Five residents are represented throughout the County budget.

Read on to learn more about key budget impacts and how you can share your input. As we make these important decisions, your feedback is critical. I encourage you to share your priorities and let me know what matters most to you as we finalize the budget for the year ahead.

In community,

[officialname]

Santa Cruz County Supervisor, District 5

District 5: Key Highlights

The proposed budget maintains funding for key initiatives in our district, including investments in roads, parks, wildfire resiliency, and other community improvement projects.

Investing in Roads

Given predictions that we are facing a record-breaking El Niño winter, I am pleased to see that $2 million of Measure K funds is proposed for road improvements in the unincorporated areas, especially since nearly 24% of all County maintained roads are in District Five.
Even though the County faces a significant debt due to previous storm damage repairs, the investment in this area remains a central priority.

Community Improvement Projects

$200,000 in Measure K discretionary funds is proposed for community improvement projects in District Five.
This past fiscal year, I used these funds to support the following initiatives in our district:
- Green Waste Disposal Program at the Ben Lomond Transfer Station;
- Infrastructure and accessibility improvements at Ben Lomond County Park, with repairs to Wilder Hall beginning this summer;
- Resources to develop trails, parking, and picnic areas at Miller Property County Park in Boulder Creek; and
- Alba Schoolhouse Park, honoring the historic site lost in the CZU fire.

Protecting and Enhancing Natural Resources (Wildfire Resiliency)

$100,000 in Measure Q funds is allocated to each District to implement projects in areas such as water conversation and quality, wildfire risk reduction, and wildlife and habitat protection.
Countywide, a total of $2.7 million in Measure Q funding is allocated for long-term resilience, environmental health, and access to parks and open spaces.

Advancing Infrastructure and Affordable Housing

The proposed budget advances the City of Scotts Valley Enhanced Infrastructure Financing District (EIFD), a financing tool that supports public infrastructure such as roads, water lines, affordable housing, and others. Read more in my recent newsletter.
Led by my direction, the EIFD would not only benefit Scotts Valley, but also the broader region—bringing jobs, housing, fire resiliency and other resources to the San Lorenzo Valley and the County.

Other Key Highlights

Below are other key highlights to preserve life-sustaining essential services, protect jobs, and modernize and improve permitting processes to foster housing and economic development.

Use of One-Time Funds to Sustain Safety Net Services

To preserve safety net services, a one-time fund of $43 million would be drawn from department trust funds and reserves.
Although this is not a long-term solution, it does buy us time to grapple with the ongoing increasing impacts of federal cuts on County health and social services.

Protecting County Jobs

At this time, no layoffs are proposed in the budget. To help protect jobs, 58 vacant jobs would be eliminated, and a countywide hiring freeze would be implemented.

Permitting Process Improvements

Ongoing efforts to improve and streamline the permitting process are included in the proposed budget, including a major update to the County Code to make the permitting process more efficient and user friendly.
These improvements will benefit residents Countywide and are especially important for individuals and families who are still struggling to rebuild their homes after the CZU fire.

How You Can Get Involved

As we consider the FY 2026-27 Proposed Budget, I want to hear what matters most to you. Community input is especially important when we are faced with difficult decisions and competing priorities.

I encourage you to share your thoughts on the programs, services, and community investments that are most important to you. Below are several ways you can participate in the budget process and share your input:

Attend a budget hearing:
- Hearings will be held on June 10 and 11 beginning at 9am. An additional hearing will be held on June 24 when the budget will be adopted by the Board.
- You can participate in-person or watch the live stream.
Provide public comment:
- You have the opportunity to provide a two-minute public comment during the meeting. For those providing public comment remotely, a zoom login and dial in number is provided at the top of the agenda, which is posted on the public portal.
- You can also provide written public comments by:
  - Sending an email to: BoardOfSupervisors@santacruzcountyca.gov
  - Visiting the Board Meeting portal and using the “Add a Comment” tool.
  - Mailing your public comment to:
    Santa Cruz County Board of Supervisors
    701 Ocean Street, Room 500
    Santa Cruz, CA 95060

Next Steps

June 24: The FY 2026-27 Proposed Budget is scheduled for approval on this day at the final budget hearing.
September 29: The final FY 2026-27 Budget will be presented at the Board of Supervisors meeting on this day.
- Any impacts from the FY 2026-27 State Budget, which will be finalized by the Legislature and signed by the Governor no later than June 30, will be shared at this time.

More Information

Check out the County’s budget website to access a range of easy to use tools to help you understand the proposed budget.
Board Memo and slides from the May 5 Board Meeting provide a high-level summary of the FY 2026-27 Proposed Budget (you can also watch the video of the budget presentation).