Santa Clara County Adopts Fiscal Year 2021-2022 Budget

SAN JOSE, CA—Santa Clara County adopted its Fiscal Year 2021-2022 Budget on Thursday, which leaders called a sensible and strategic investment to lift up a pandemic-fatigued workforce and build an equitable and sustainable post-pandemic future.

In a release, the county said the $9.2 billion budget struck an optimistic tone, though leaders said they remain cautious because of the uncertainty left in the wake of the pandemic.

"This is a budget that brings back stability and sets the foundation for rebuilding efficiently," said Greg Iturria, the county budget director.

According to leaders, the county is making a better-than-expected financial and economic recovery due to a number of factors, including federal pandemic relief funds from the American Rescue Plan. While the funds can help stabilize and meet local needs, the county leaders say they recognize these are one-time resources.

That's why leaders say the budget is built around long-term revenue, which it can invest in "government that works for all community members - regardless of race, neighborhood or socioeconomic status."

Some notable investments from the approved budget include:

• $20 million annually for loan payments to develop the Adolescent Psychiatric Facility/ Behavioral Health Services Center, which can support important, currently unmet needs for youth.
• $2.4 million increase to supplement operations for the Vietnamese American Services Center, which will offer accessible and culturally responsive services to the local community.
• $5.3 million for new cadet academies for sheriff's deputies and correctional officers, who can fill vacant positions and reduce reliance on overtime.
• $35.8 million to build stronger and more robust information technology.
• $249 million to improve hospitals and clinics to deliver better care for diverse community members.
• $19 million for a small business loan program, which can support small businesses that have been among the hardest hit by the pandemic.

Though signs point to a financial recovery, leaders say it will take time to get back to pre-pandemic economic levels.

Jobs in Santa Clara County have not fully recovered and are not expected to reach pre-pandemic levels before 2022, and the growth of property tax revenues has slowed and is projected to flatten.

Working within these constraints, leaders say the government must find a way to function smarter and more efficiently, while always keeping equity top of mind.

"This budget really focuses on important initiatives for rebuilding our community, while recognizing that we must be prudent because uncertainty remains," said Mike Wasserman, Board of Supervisors president. "The pandemic has taught us many lessons, and we'll use them to make our government and community stronger, sustainable and more effective for everyone."

According to the release, the county has published the FY 2021-22 Recommended Budget, along with details of a 10-year capital improvement program, an IT strategy plan, and an open data portal on its website. In the fall, the county will publish the FY 2021-22 Adopted Budget that was approved on Thursday.