Santa Clara County is proposing a five-eighths cent sales tax increase to safeguard its public hospital system from impending federal spending cuts. The increase would raise the sales tax from 9.125% to 9.75% and generate an estimated $330 million annually, although this falls short of the projected $1.4 billion losses by 2030. The proposal will be included on the Nov. 4 special election ballot. County leaders are also considering forming an oversight committee for tax spending accountability, indicating that there will be additional county spending cuts to address funding shortfalls.
"Whether it's on a monthly basis or quarterly - it would be great to hear (updates) on a continuous basis so we can make sure we continue to build confidence in our community," District 1 Supervisor Sylvia Arenas said.
"The magnitude here is extraordinary and it's going to call upon this county organization to do extraordinary things, which we've done before in the past but cannot do alone," County Executive James Williams said at the meeting.
"There is no way around that reality," Williams said.
If voters approve the increase, the sales tax rate would go from 9.125% to 9.75%. The draft proposal shows the tax would end April 1, 2031.
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