Santa Clara County tackles $470M budget shortfall - San Jose Spotlight
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Santa Clara County tackles $470M budget shortfall - San Jose Spotlight
"The Board of Supervisors voted unanimously Tuesday to reshuffle 60 employees - mostly out of the public hospital system - to other county roles without laying them off. County leaders in total eliminated 365 full time positions, of which 305 are unfilled across several departments. Officials have also found $60 million in additional revenue projections to help cut down the budget shortfall for fiscal year 2026-27."
"That still leaves a remaining - and difficult - gap of roughly $270 million to address in the upcoming budget process. "These are very tough cuts," Board President Otto Lee, who represents District 3, said to county employees at the meeting. "You've gone through all these (departments) to find places for those who have been affected and fill positions so that no one in this county is being laid off.""
"This significant shortfall comes even as county leaders successfully campaigned for a voter-approved, five-eighths cent sales tax increase, known as Measure A, which is expected to bring $330 million in extra revenue per year until it expires in 2031. The measure was introduced to offset the impacts of unprecedented federal spending cuts under H.R. 1, President Donald Trump's "One Big Beautiful Bill.""
Santa Clara County faces a $470 million deficit in the upcoming fiscal year, prompting the largest midyear budget adjustment in more than a decade and efforts to close $200 million of the gap. The Board of Supervisors reshuffled 60 employees—mostly from the public hospital system—to other county roles without layoffs and eliminated 365 full-time positions, of which 305 are unfilled. Officials identified $60 million in additional revenue projections for fiscal year 2026-27, leaving an estimated remaining gap of roughly $270 million. Voter-approved Measure A is expected to add $330 million annually until 2031 to help offset federal spending cuts.
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