The Budget
in 5 Minutes

Santa Cruz County
Published April 30, 2023
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Budget Message

I am pleased to present the Fiscal Year 2023-24 Proposed Budget, which assures continuity of public services during uncertain economic times. We face significant challenges from climate change and natural disasters, aging infrastructure and facilities, and major changes to State behavioral healthcare systems. To meet those challenges, we continue to invest in County staff, bring services closer to those that need them, and make targeted investments that allow all our residents to thrive.

Carlos J. Palacios
County Administrative Officer

Carlos J. Palacios

Read the complete CAO Budget Message here:

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What the
County Does

01

Santa Cruz County is located on land indigenous to the Ohlone people. It's 270,000 current residents enjoy over 29 miles of beaches and large open spaces for recreation and conservation. The local economy is driven by tourism, agriculture, and education, including the University of California Santa Cruz, and Cabrillo College. Santa Cruz County has a rich art and film history, which contribute to a unique local culture.

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02

Unlike other counties, more than half the population lives in the unincorporated area. Places like the San Lorenzo Valley, Live Oak, Aptos, Corralitos and more rely on the County for road maintenance, law enforcement, parks, and building permits.

Countywide services for all residents include public health insurance and safety net support, district attorney and public defender services, and conducting elections.

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03

Even though we serve so many people, we only get about $550 per resident in taxes (Santa Clara County gets almost $11,000). That makes it really challenging to tackle our biggest issues, like adapting to climate change, building affordable housing, and making sure that our younger residents (over 50% of people 24 and under are Hispanic/Latin) have the same opportunities as our older residents (almost 80% of people 55 and older are white) to create and improve communities and neighborhoods.

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04

Despite funding challenges the County, led by the Board of Supervisors, has made unprecedented progress in addressing critical community needs. Last year we saved Watsonville Community Hospital, won the biggest ever active transportation grant to invest $115 million to build the Rail Trail, finalized project plans and financing of a Child Crisis Stabilization Center, and began construction on dozens of permanent supportive, farmworker, and very low income housing units.

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Economic Outlook
and Financial Summary

01

The local economy is entering uncertain times. National economic output is projected to stop growing early this year in response to last year's sharp rise in interest rates. Inflation is expected to continue above the long-term goal of 2%. The State is facing a deficit over $20 billion from revenue losses. Locally unemployment is projected to remain low, due to modest job growth and a shrinking labor force. Local governments are inadequately funded for road, parks, facilities and other capital needs.

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02

The 2023-24 County budget of $1.1 billion reflects Board priorities around climate adaptation, housing, and financial sustainability. The General Fund budget of $731.2 million is in balance but relies on $12.2 million from fund balance. While funding some facility needs, it falls short of the over $400 million in unfunded capital projects and county facility needs. It includes nearly $12 million in salary and benefits increases, collecting $14.5 million of the $67 million in outstanding disaster reimbursements. The County is still facing an on-going structural deficit and reserves are inadequate given our economic, disaster, and aging infrastructure.

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03

Increasing the County's funding disparity is State policy on sales tax, which diverts local sales taxes paid in the unincorporated area to other governments, increasingly to governments outside Santa Cruz County. The County normally receives 19% of sales tax, but when an item is purchased online from Felton or Corralitos only 5% of that sales tax comes back to support local services, instead flowing to other cities in the County or, in some cases the County's share is redistributed entirely to the government where the shipping warehouse is located.

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04

County staff are our most important asset. They make incredible, normal things work, like sewers, health clinics, and parks. During the COVID-19 pandemic the County significantly increased its Health and Human services staffing. Only 21.2 positions are added or funded, largely from external funding sources reflecting the County's caution in increasing base costs during this economically uncertain time.

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Department
Budgets

01

Health and Human Services are the largest part of the County budget at $434 million, requiring $38 million in County contributions. In 2023-24 those departments will make targeted investments to:

  • Start construction on a Children's Crisis Center
  • Increase access for substance use disorder treatment countywide
  • Start construction on 150 units of permanent supportive housing
  • Ensure over 90,000 (over 33%) County residents maintain benefits they are entitled to
02

Public Safety and Justice departments utilize over 50% of the County's discretionary revenues. In 2023-24 those departments total $198 million requiring $116 million in County contributions. They will make targeted investments to:

  • Increase community awareness during disasters
  • Improve access to medical and mental health care in detention facilities
  • Expand Public Defender early representation to clients
  • Link 90 youth and families to community services to help as they transition from detention
03

Land Use and Community Development departments rely primarily on State and Federal funding ($99M) to fix potholes, collect garbage, and maintain parks. In 2023-24 those departments total $298 million requiring $32 million in County contributions. They will make targeted investments to:

  • Increase housing options through an approved Housing Element
  • Help recovery efforts following natural disasters
  • Create a more sustainable energy future by reducing the County's dependence on oil and gas
  • Improve groundwater management and increase water efficiency of local berry growers
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General Government departments provide the backbone of County services, and ensure an accessible and transparent government. In 2023-24 those departments total $122 million requiring $58 million in County contributions. They will make targeted investments to:

  • Green the County fleet through replacement of vehicles with new EVs
  • Work towards diverse, equitable representation on County commissions and advisory bodies
  • Improve online access to County services and increase broadband access through a Master Plan
  • Create career pathways for county youth into family-wage jobs
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Transparency Portal

You can search and filter the entire budget using the OpenGov Transparency Portal by clicking the link below:

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Board of Supervisors

Manu Koenig Photo
Manu Koenig 1st District
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Zach Friend Photo
Zach Friend 2nd District
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Justin Cummings 3rd District
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Felipe Hernandez
Felipe Hernandez 4th District
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Bruce McPherson Photo
Bruce McPherson 5th District
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The Board of Supervisors governs the Santa Cruz County unincorporated area and is the executive and legislative governing body of the County of Santa Cruz. The Board directs overall operations of the various County departments and districts by establishing policies and approving the budgets and financing for all of County government and certain special districts.  The current Chair of the Board of Supervisors is Zach Friend (2nd District), who serves beside Manu Koenig (1st District), Justin Cummings (3rd District), Felipe Hernandez (4th District) and Bruce McPherson (5th District).

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The Budget in 5 Minutes
What the County Does?
Economic Outlook & Financial Summary
Department Budgets
Budget Policies & Resources
Transparency Portal
Board of Supervisors
Feedback Form
Budget Archive