County Executive James R. Williams Issues Statement on 2025-26 Recommended Budget

James R. Williams, County Executive for the County of Santa Clara, issued a statement on Tuesday, May 1, regarding the Fiscal Year 2025-2026 Recommended Budget:

“Today, I issued a Recommended Budget to the Board of Supervisors that is balanced, fiscally responsible, and safeguards essential services for our community. 

"The proposed $13.6 billion budget prioritizes critical safety-net services and strategic investments, including the expansion of behavioral health services, preservation of public health and supportive housing programs, and the delivery of critical care through our public hospital system, the largest in Northern California. 

"While this proposed budget reflects what we know today, the County is facing extraordinary and unprecedented financial uncertainty due to the sweeping federal funding cuts being proposed by the new federal administration. This presents very real challenges for the County and our community, because 30% of our budget today is federally derived.

"The County is already experiencing cuts to revenues and grants at the hands of the federal administration. In the coming weeks, Congress is expected to make drastic reductions to Medicaid and social services programs to pay for large-scale tax cuts. If adopted, these cuts will have a profound impact on County services – not to mention the one in four residents of our County who rely on Medicaid for healthcare coverage. 

"In addition to these threats, we face significant budget risk from potential actions taken by the State of California. The Governor may be considering funding cuts to safety net programs, including Medi-Cal, regardless of what federal actions may occur. While we will know more when the Governor releases his May Budget Revision in mid-May, we continue to urge the State to mitigate and not exacerbate these cuts.

"Amid so much uncertainty, it is critical that we make budget decisions on our own terms. Kicking the can down the road only leaves our organization and community more exposed, and vulnerable, to the whims of these changing tides at the federal and state level. We must chart a proactive, balanced path forward now. 

"The Recommended Budget I have submitted to the Board proposes a realignment of some discretionary funding in the next fiscal year to backfill anticipated federal funding losses. While we can’t mitigate all impacts that we will face, this is our best planning tool for preserving high-quality service delivery and jobs across the County organization. 

"In these challenging times, we are being called upon as a safety-net service provider to remain steady, resilient and rooted despite rapid changes. While we do not know exactly what will unfold in the months and years ahead, we must continue to remain flexible and nimble while holding firm to the values that define us. 

"I am confident we will navigate these headwinds as we always have — with resolve, collaboration, and thoughtful consideration for the interests and wellbeing of the people we serve and the people who serve our County every day.” 

You can view the County Executive’s Fiscal Year 2025-2026 Recommended Budget on the County's Budget and Finance webpage.