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Santa Clara County Outlines Cuts to Close $787 Million Budget Shortfall

The plan channels new sales‑tax revenue to the public hospital system to cushion federal cuts.

Overview

  • County Executive James R. Williams proposed a FY 2026–27 budget that tackles a $787 million gap in a roughly $15 billion plan with staffing cuts and service changes.
  • The proposal deletes 655 positions for a net reduction of 464 after some additions, and about 265 of the targeted jobs are filled with reassignment promised to limit layoffs.
  • All $337 million from last year’s Measure A sales tax would go to Santa Clara Valley Healthcare to blunt expected Medi‑Cal losses under H.R. 1.
  • The Behavioral Health Department, facing a $100 million shortfall, would lose 110 jobs and close the Narvaez Adult Mental Health Clinic, the Central Wellness and Benefits Center, and the Alexian Adult Narcotic Treatment Program.
  • District Attorney Jeff Rosen criticized the draft after 42 positions in his office were marked for deletion, and supervisors will test these choices in budget workshops before a mid‑June vote.