Santa Cruz Board of Supervisors 08/04/2026

The Santa Cruz County Board of Supervisors held a special meeting on August 4, 2026, focused on addressing the county's fiscal distress due to significant federal and state funding cuts impacting local safety net services. The board considered adopting a resolution declaring a state of fiscal distress and placing a temporary half-cent countywide sales tax measure on the November 2026 ballot to raise approximately $27 million annually for five years. The funds would support critical services including emergency medical services, mental health, substance use services, food security, housing stability, and homelessness response. The board discussed the fiscal challenges, the impact of federal legislation HR1 on local healthcare and social services, and the need for local revenue to triage these losses. Public comments reflected both support for the measure to preserve essential services and concerns about the regressive nature of sales taxes. The board amended the resolution to strengthen language around addressing chronic homelessness and protecting recent community progress. The motion to place the measure on the ballot was supported as a necessary, though partial, response to a worsening fiscal situation.