Packed Board Meeting Next Tuesday and Budget Hearings Next Wednesday and Thursday

It's one of the busiest times of the year for the County as we race to adopt a budget and get through business before the July break from public meetings. On Tuesday the Board of Supervisors will have a packed agenda that includes many zoning related items. The meeting will take place in the newly remodeled Board Chambers at 701 Ocean St.

On Wednesday, we'll head down to the South County Government Center to begin hearings on the County's proposed $1.29 billion budget for the coming fiscal year. Hearings will be held on Wednesday, June 10 in Watsonville, and on Thursday, June 11 back in Santa Cruz. They will conclude on June 24 when the Board is scheduled to adopt the final budget.

The proposed budget keeps county services largely intact and avoids layoffs, but it also highlights some growing financial challenges that the County will need to address in the years ahead.

The budget balances this year, but only by using about $43 million in reserves and other one-time funding sources. Those funds will not be available next year. At the same time, employee compensation costs continue to rise, with salary, health insurance, and retirement costs increasing by nearly $33 million. Insurance and liability costs are also climbing. County staff project that if those trends continue, the gap between ongoing revenues and expenses could grow significantly over the next few years.

Budget hearings provide an opportunity to learn more about where county dollars are going and give you a chance to share your thoughts and views before the budget is finalized. I encourage all county residents to review the proposed budget and participate in the discussion.

Wednesday, June 10 – South County Government Center, Watsonville

• CEO overview
• Health Services Agency
• Human Services Department
• Public Defender

Thursday, June 11 – 701 Ocean Street

• Probation
• Sheriff-Coroner
• Parks, Open Spaces & Cultural Services
• Measure Q
• Capital Improvements: 2026-2031
• CDI: Public Works
• CDI:  Planning & Housing

Highlights from Next Tuesday's Board of Supervisors Meeting

Item 7. Planning for the Future of Behavioral Health Services

Next week, the Board will consider approval of Santa Cruz County's Behavioral Health Services Act (BHSA) Integrated Plan for Fiscal Years 2026–2029. The plan outlines how the County will provide and fund behavioral health services over the next three years as California transitions from the former Mental Health Services Act framework to the new Behavioral Health Services Act established by Proposition 1.

Approval by the Board will allow the County to submit the plan to the California Department of Health Care Services before the June 30 state deadline.

Item 9: Accept Coastal Commission Action on Housing Element Rezoning Program

The Board will consider accepting modifications required by the California Coastal Commission to several coastal-zone rezonings. These rezonings were originally adopted by the Board in 2025 to help implement the County's state-certified Housing Element. 

The rezonings include seven parcels, which can generally be described as the vacant lot at 7th & Brommer, the El Rancho Shopping Center and the adjacent lot on the corner of 35th, and the Seascape Golf Club. The parcels include APNs: 026-261-13, 026-261-16, 032-041-44, 032-041-67, 032-041-68, 053-011-01, and 053-011-09.

Much of the discussion at the Coastal Commission focused on the County-owned site at 7th and Brommer in Live Oak, where plans include affordable housing, public open space and visitor-serving uses. The modifications are intended to ensure that future housing development remains concentrated in a defined portion of the property while preserving coastal resources and opportunities for other community uses.

Acceptance of these modifications is the final step needed to complete the Coastal Commission certification process. The action does not approve a specific development project but establishes the land use framework that will guide future planning and development at these sites.

Also during next week’s meeting, the Board will hold a public hearing on proposed updates to accessory dwelling unit (ADU) regulations. The ordinance is designed to align local rules with recent changes in California law, incorporate guidance from the California Department of Housing and Community Development, and address comments received from state agencies and the California Coastal Commission.

The County's ADU regulations were last substantially updated in 2021, but additional state legislation adopted in recent years has required local governments to revise their ordinances. The proposed amendments include changes intended to clarify permitting requirements, streamline the review process, update references to state law, and resolve conflicts between local regulations and state housing mandates.

Accessory dwelling units continue to play an important role in expanding housing opportunities throughout the county. The proposed ordinance is intended to provide greater certainty for homeowners while ensuring the County remains in compliance with state requirements governing ADU development.

The Board will consider updating the rules for County skateparks, pump tracks, and bike jump areas to better reflect how these facilities are used today. Current rules focus mostly on skateboards, but many riders now use bicycles, scooters, and other wheeled devices. The proposed changes would create a single set of rules for all County action sports facilities, clarify what equipment is allowed, and update helmet and safety gear requirements. If approved, the changes would mainly require updating signs at County parks. 

The Board will consider placing a measure on the November 2026 ballot that would update Santa Cruz County's voter-approved restrictions on facilities that support offshore oil and gas development. The proposal would amend Chapter 16.55 of the County Code, which began as Measure A, approved by voters in 1986. Measure A requires voter approval before certain onshore facilities tied to offshore oil development can be built in the county.

The proposed update comes as federal policymakers revisit offshore oil and gas leasing and as companies explore commercial deep-sea mining. Earlier this year, the Board adopted resolutions opposing expanded offshore oil and gas development and raising concerns about the potential impacts of deep-sea mining. Those concerns include effects on marine life, local fisheries, coastal communities, and Monterey Bay.

The measure would extend existing voter protections to cover onshore facilities that support deep-sea mining, in addition to those connected to offshore oil and gas development. It would also update language adopted nearly 40 years ago to reflect current conditions and legal requirements. If the Board approves the proposal, county voters will have the final say in the November 2026 election.

The Board will consider funding recommendations for the first round of Measure Q grants. Approved by voters in 2024, Measure Q generates approximately $7 million annually through a parcel tax designated to “fund projects to protect drinking water sources, rivers, creeks, streams, groundwater resources, beaches, and parks, reduce catastrophic wildfire risks, and preserve native wildlife, habitats, working lands, and agriculture.”  Currently, 40 percent of the revenue is dedicated to a County-administered grant program supporting clean water, wildfire resilience, habitat protection, wildlife conservation, and park maintenance.

Interest in the program was exceptionally strong. The County received 53 eligible applications requesting nearly $9 million in funding, which is more than three times the amount available. The Citizen Oversight Advisory Board is recommending approximately $2.74 million in awards for 17 projects through the program's Community Catalyst and Community Impact grant categories.

The funding recommendations can be reviewed on page 8 of the staff report here.