May 03, 2026 04:20

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Santa Cruz County Budget 2026-27: A Bridge to Avoid Cuts, But Deficit Looms

Likely, Santa Cruz, Watsonville, politics, money, economy, health

Santa Cruz County's proposed $1.29 billion budget for 2026-27 protects core services and avoids layoffs by using $43 million in one-time funds, reducing reserves to 10.4%. - The county faces a projected $67 million deficit in FY 2027-28 without structural changes.

- Federal policy changes under H.R. 1 shift safety-net costs to counties, threatening Medi-Cal and CalFresh.

- The county supports a state funding request of $1.9 billion in 2026-27 and $4.5 billion in 2027-28. Public budget hearings begin May 5 in Santa Cruz and Watsonville.

The county urges community engagement to address long-term fiscal challenges.

This story was originally reported by lookout. Read the original article here.

Summarized by CaliforniaToday AI.

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LikelySanta CruzWatsonvillepoliticsmoneyeconomyhealth
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