Santa Clara County Board of Supervisors Approves 2023-24 Budget
The $11.3 billion budget addresses a growing structural deficit while funding key County priorities, including behavioral health, access to housing, and criminal justice reform
SANTA CLARA COUNTY, CALIF. — The Santa Clara County Board of Supervisors on Thursday approved an $11.3 billion budget for the coming fiscal year (FY) that enhances behavioral health and other core services while beginning to tackle a structural deficit that is expected to grow over the next several years amid a faltering economy.
The FY 2023-24 budget closes a $120 million funding gap by eliminating roughly 600 vacant positions and utilizing a combination of one-time solutions, such as the use of reserves and delaying projects. Despite these reductions, the budget advances the Board’s five strategic priorities:
- Expanding access to behavioral health services
- Increasing access to housing
- Strengthening community safety and reforming the criminal justice system
- Enhancing support for children and families
- Promoting sustainability
“Santa Clara County is investing heavily in mental health and substance use treatment facilities, services and workforce, in part stemming from the local emergency the Board declared in these areas 18 months ago,” said Supervisor and Board President Susan Ellenberg. “I am pleased with the increased budget for behavioral health and substance abuse disorder services in FY 2023-24 to provide expanded support and demonstrate Santa Clara County’s continued leadership in this area, as well as our commitment to all our residents.”
The budget marks a transition for the County, with the retirement of longtime County Executive Jeffrey V. Smith, M.D., J.D., at the end of June. He will be succeeded by County Counsel James Williams, who was also involved in the development of the budget.
“The FY 2023-24 budget continues the County’s important work to support our most vulnerable residents, while taking the first steps to resolve a structural deficit caused by the economic slowdown, inflation and high interest rates,” said Dr. Smith. “I am proud of all we have accomplished to improve behavioral health and medical care, create affordable housing, and provide many other vital services to individuals and families in Santa Clara County. I have great faith in James and the County’s executive team to lead us through the challenges that lie ahead and am confident that our skilled and passionate County staff will continue to provide excellent services to the community.”
The County projects the structural deficit will increase to $158 million by fiscal year 2024-25, with growth in the cost of providing services expected to outpace revenue growth in the short term. The regional economy has cooled since rebounding dramatically in the wake of the COVID-19 pandemic. High interest rates are slowing the growth of property tax revenues, the County’s largest source of funding, while inflation is raising the cost of supplies and contract services.
To eliminate the structural deficit, the County will focus in part on improving efficiency, seeking out new revenue sources, and redirecting resources to the highest priorities.
“The next few years will bring challenges but also incredible opportunities. We will work hard in the months ahead to ensure we maintain a balanced budget over the next few years,” said Williams. “There will be difficult choices. But we will continue to show the resiliency and creativity that have characterized Dr. Smith’s leadership, expand access to key services, and concentrate on our mission to plan for the needs of our residents, provide high-quality services, and maintain a healthy, safe and prosperous community.”
“Santa Clara County is committed to preventing our residents from becoming homeless and permanently housing those who are already without a home during this budget year. We are making Santa Clara County’s Homeless Prevention Division pilot program permanent, adding staff, and poised to contract with more nonprofits to provide rental assistance to those on the verge of becoming homeless,” said Supervisor Cindy Chavez.
“It was critical for me that this budget would make major new investments in our most disadvantaged and underserved communities,” said Supervisor Sylvia Arenas. “This budget does just that: It expands mental health, substance abuse and homelessness interventions, while making major new investments in public safety and youth intervention – particularly in struggling communities in South County. This balanced budget will move the needle for the health and well-being of our families.”
“The approved budget highlights our continued focus on expanding behavioral health services to the community. We added hundreds of new beds for mental health care and detox," said Supervisor Otto Lee. "Yet our biggest challenge remains — the inability to fill numerous vacancies throughout our County from nurses, social workers and 911 dispatchers to sheriff's deputies. We balanced the budget on paper but still have to fix our chronic understaffing. We must fill these critical positions ASAP.”
“The Board of Supervisors and the County Executive have developed and adopted a balanced budget with contributions from County departments and our community-based partners,” said Greg Iturria, the County’s Budget Director. “Together, we have allocated the necessary funds to enhance the County’s safety net and maintain services that improve the lives of nearly 2 million residents in Santa Clara County.”
More information on the FY 2023-24 budget is available on the open data portal on the County’s budget and finance webpage. The County will publish the Fiscal Year 2023-24 Adopted Budget in the fall.
ABOUT THE COUNTY OF SANTA CLARA, CALIFORNIA
The County of Santa Clara government serves a diverse, multicultural population of 1.9 million residents in Santa Clara County, Calif., making it more populous than 14 states in the United States. The County provides essential services to its residents, including public health protection, environmental stewardship, medical services through the County of Santa Clara Health System, child and adult protection services, homelessness prevention and solutions, roads, park services, libraries, emergency response to disasters, protection of minority communities and those under threat, access to a fair criminal justice system, and many other public benefits.
Visit the County of Santa Clara at: www.sccgov.org
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Media Contact: María Leticia Gómez / Aaron Kinney, Office of Communications and Public Affairs, (408) 299-5119, [email protected]
Posted: June 15, 2023