Government: County budget of $11.3 billion invests heavily in mental health
New budget closes a $120 million funding gap
By Staff Report
The budget for Santa Clara County for the fiscal year starting July 1 was approved at $11.3 billion at the June 15 Board of Supervisors meeting.
The budget is designed to enhance 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. It also addresses access to housing and criminal justice reform.
The FY 2023-24 budget closes a $120 million funding gap by eliminating about 600 vacant positions and using 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 and 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,” Smith said. “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,” Williams said. “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, Supervisor Cindy Chavez said.
“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,” she said.
The approved budget highlights our continued focus on expanding behavioral health services to the community. The county added hundreds of new beds for mental health care and detox, said Supervisor Otto Lee.
“Our biggest challenge remains — the inability to fill numerous vacancies throughout our county from nurses, social workers and 911 dispatchers to sheriff’s deputies,” he said. “We balanced the budget on paper but still have to fix our chronic understaffing. We must fill these critical positions ASAP.”
The board and the county executive have developed and adopted a balanced budget with contributions from county departments and various 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,” he said.
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.
This story was rewritten from a press release sent June 16 from the county.
