The Santa Cruz County Board of Supervisors recently approved the fiscal year 2026-27 proposed budget, completing months of public review and deliberations.
According to the county, the $1.29 billion budget maintains public safety, health and human services, and other county operations while continuing a strategy of fiscal restraint intended to address a structural budget imbalance that county officials say has been worsened by inflation, rising operating costs and reductions in federal support for safety-net programs.
“The Board and County staff were faced with extraordinarily difficult choices,” County Executive Officer Nicole Coburn said. “The FY 2026-27 Budget maintains the discipline necessary to protect essential services today while preparing for even greater fiscal challenges ahead. These choices were made with an eye toward preserving the County’s long-term operational and financial sustainability.”
During the budget process, the board considered public testimony and made several adjustments to the proposed budget, including maintaining the county’s current conflict public defense model while directing staff to return later this year with recommendations for the long-term delivery of conflict defense services. Final decisions on funding for county parks, including preserving Sunday hours at Simpkins Family Swim Center and restoring arts grant funding, were delayed until June 30.
County officials said federal changes enacted through H.R. 1 are expected to increase costs and reduce funding for programs serving Santa Cruz County residents, placing additional pressure on local governments. They also said counties throughout California face uncertainty surrounding health care, behavioral health, food and nutrition assistance, housing, homelessness response and other safety-net services.
Although the FY 2026-27 budget is balanced, county officials said significant uncertainty remains. The full fiscal impact of H.R. 1 will depend largely on how California implements the law and responds to costs shifted from the federal government to states and counties.
County staff said they expect to return to the Board of Supervisors this fall with updated fiscal projections and, if necessary, recommendations to address budget impacts.
The county also plans to continue working with the board on long-term fiscal strategies, including evaluating funding options to help meet community needs.
The approved budget continues funding for several county priorities, including:
- Completion of the county’s next Strategic Plan to guide long-term priorities and fiscal investments.
- Continued implementation of Streamline Santa Cruz County and the AI Elevation and Standardization Workplan.
- Continued local investments through Measure K for roads, the environment, parks, housing and homelessness programs in unincorporated Santa Cruz County.
- Continued implementation of Measure Q for parks, wildfire risk reduction and environmental stewardship.
- Progress on affordable and permanent supportive housing projects, including Veterans Village, Park Haven Plaza, and future development at Seventh Avenue and Brommer Street.
County officials said the FY 2026-27 budget relies on one-time funding that cannot sustain ongoing operations indefinitely and does not resolve the county’s long-term fiscal challenges.
Current projections indicate the county will continue facing structural deficits in future years, requiring continued fiscal discipline, operational efficiencies, advocacy for state and federal support, and evaluation of county programs and services.
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The FY 2026-27 budget and supporting documents are available at sccbudget.us.