Santa Clara County officials have strongly criticized Governor Gavin Newsom's May budget revision, calling it a 'massive leadership failure' that adds $231 million in losses to public hospitals and threatens mental health services. - The revision adds $231 million in losses to public hospitals in the upcoming fiscal year, increasing to $322 million the following year.
- The TRUST mental health crisis response program faces reduced Medi-Cal reimbursements, with state funding expiring in November. - County leaders have already made $200 million in cuts and approved a sales tax increase to address a $787 million shortfall.
- State officials argue the revision provides additional assistance, including $262 million for Medi-Cal changes and a new digital software sales tax. Despite this, county leaders are urging the Legislature to reject the proposal and find alternative solutions to protect critical services.