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Santa Cruz County Puts Half‑Cent Sales Tax on November Ballot

County leaders say recent federal and state funding shifts threaten Medi‑Cal coverage to such an extent that a voter-approved tax would temporarily raise about $27 million a year to preserve local safety‑net services.

Overview

  • The Board of Supervisors voted Tuesday to declare a state of fiscal distress and place a temporary half‑cent sales tax on the Nov. 3 ballot conditional on the passage of state bill SB 762.
  • If voters approve, the measure would raise an estimated $27 million a year for five years to fund emergency medical care, behavioral health, homelessness response, food security and other safety‑net programs.
  • The county cites recent federal and state policy changes that it says will shrink Medi‑Cal enrollment and federal funding, and officials estimate more than $150 million in higher costs and lost revenue over five years with potential provider losses exceeding $200 million a year.
  • Supporters call the tax a stopgap to preserve existing services and prevent clinic and clinician departures, while some residents argue the sales tax is regressive and would disproportionately burden low‑income households and retirees.
  • Next steps require Gov. Gavin Newsom to sign SB 762 to authorize the local vote and, if the measure passes, the county would allocate funds through its regular budget process with public hearings and specified exemptions for basic items.