Santa Cruz County Board of Supervisors has voted to place a temporary half-cent transactions and use tax measure on the Nov. 3 General Election ballot and declared a state of fiscal distress due to significant federal and state funding reductions affecting county safety-net services.
If approved by a majority of voters, the measure would generate an estimated $27 million annually for five years to help offset reduced federal support for healthcare, emergency medical services, nutrition assistance, behavioral health and other essential services.
County officials estimate recent federal and state actions will result in more than $150 million in increased costs and reduced revenues for the county and its community partners over the next five years.
According to the county, state officials estimate 1.1 million Californians will lose Medi-Cal coverage, while some researchers project that number could approach 3 million by 2028. The Central California Alliance for Health projects a 27% decline in Medi-Cal enrollment across its five-county service area, and resulting losses in Santa Cruz County’s provider network could eventually exceed $200 million annually.
“Communities across the country are facing the consequences of significant changes in federal funding,” said Board Chair Monica Martinez in a news release Aug. 4. “Today’s action gives the people of Santa Cruz County the opportunity to decide whether they want to be part of a local response that lifts up and protects their fellow County residents.”
The board identified healthcare and emergency medical services, behavioral health, food security, housing stability and other essential community services as priorities for potential funding. Any future appropriations would be determined through the county’s regular budget process, including public hearings and community input.
The ballot measure is contingent on Senate Bill 762, which would authorize the local tax. The bill was approved by the California Senate on Aug. 3 and is awaiting action by Gov. Gavin Newsom.
