SANTA CLARA COUNTY’S top executive is recommending layoffs to keep core social safety net services alive in the face of two threats: a steep budget deficit and proposed federal spending cuts under President Donald Trump.
County Executive James Williams’ recommended budget would cut 279 positions — about 80 of which are filled and could be laid off — to absorb the federal cuts and county budget shortfall, which is estimated to swell to $476 million over the next five years. A majority of the cuts will happen in the health and hospital system, which is 30% of the county’s proposed $13 billion budget.
“By July 1 the number of filled positions may be smaller,” Williams told San José Spotlight. “We do have places where those employees can move — sometimes in the same department, maybe a slightly different role. We’re working very hard to make sure there’s a landing spot.”
The budget anticipates a nearly $70 million hit to county revenue in the upcoming fiscal year as a result of federal spending cut proposals under the Trump administration. Federal dollars make up 30% of the county’s total money. Yet Williams, in his Thursday budget message to the Board of Supervisors, said the actual number is likely to be larger and require further cuts once known.
The problems aren’t just coming from Trump.
Santa Clara County also faces threats from Gov. Gavin Newsom, as signs indicate he’ll propose additional state cuts to Medi-Cal in a mid-May budget revision for fiscal year 2025-26 — independent of the cuts the Trump administration might make.
Williams said Newsom could exacerbate, rather than reduce, the harm from the federal government.
“It could be really catastrophic for these programs and services because it becomes this cumulative and compounding impact,” Williams said. “We need the state to be thoughtful — don’t make cuts to the same services that the federal government is trying to decimate.”
The county will propose using taxpayer dollars out of the general fund, its largest source of discretionary spending, to keep its most critical but federally reliant services running at a baseline level.
Most of the backfilling will go to supportive housing services, which will see the steepest federal reduction hit at $24 million in losses, followed by the Public Health Department at $19 million. The Social Services Agency, Behavioral Health Services and District Attorney Jeff Rosen’s office will also see hits to their budgets and rely on general fund support.
But Sheriff Bob Jonsen’s office will see no general fund support, as his office stands to be least affected by proposed spending cuts under the Trump administration.
“We don’t have the resources to backfill everything,” Williams said.
Still, the recommended budget adds 30 positions to Custody Health Services to improve mental health services for people in the county jails.
Santa Clara County’s federal revenues fall into three main categories. The largest category, approximately $3 billion, comes from Medicaid — the U.S. government insurance program managed locally as Medi-Cal in California — and Medicare, the insurance plan for people with disabilities and older adults. Next is money that comes in for social services from a variety of state and federal programs administered by the county, including food stamps and foster care programs.
Both of these categories haven’t yet been factored into Williams’ budget message. He said while federal lawmakers are proposing steep cuts to these programs, it’s unclear how those cuts will take shape.
The third and smallest category in the budget is money from federal grant programs established by Congress.
“We’ve already seen cuts and impacts,” Williams said. “The programs themselves are being radically transformed and all sorts of conditions are being imposed on them.”
Budgeted revenues will increase from $11.4 billion last year to $12.6 billion this year, and net spending is expected to increase from $12 billion last year to $13 billion this year. Net spending is usually larger than revenue because the county still has leftover dollars from the prior year to spend.
County supervisors will hash out Williams’ proposals at a series of budget workshops this month, from May 12 through May 14.
“We’re doing the things we can — with the things we can control — so that to the greatest extent possible, we are determining our own future,” Williams told San José Spotlight.
Contact Brandon Pho at brandon@sanjosespotlight.com or @brandonphooo on X.
This story originally appeared in San José Spotlight.