Dear Friends and Neighbors,
The last Board of Supervisors meeting of the year is tomorrow. It will be a long one and includes: Measure Q grant guidelines, the impact of federal and state policy changes, regulations on cannabis lounges, permit fees, and affordable housing regulations.
Mark your 2026 calendar for a town hall with our new County CEO, Nicole Coburn: February 11. I had a chance to show her around District 1 recently in preparation for your questions and comments.
I also toured the 9-1-1 Regional Dispatch Center and want to send a huge thanks to everyone who will be answering emergency calls throughout the holidays.
Finally, there are lots of opportunities to get more civically engaged in 2026. Check out our commission openings!
Best, |
Manu Koenig 1st District Supervisor, Santa Cruz County
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Highlights on Tomorrow's Board of Supervisors Meeting
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Image: Curtain burner can reduce large amounts of vegetation, which is why they're being used in wildfire risk reduction efforts by other communities. Photo Credit: airburners.com
A new funding opportunity will soon be available for projects that reduce wildfire risk, protect water quality, expand access to parks and open space, restore habitat, and strengthen climate resilience. Measure Q was approved by voters in 2024 and approximately 40% of the revenues from the measure ($2.5 million this year) will be allocated through a grant program. At our meeting tomorrow, the Board will consider draft guidelines for the County’s first Measure Q Grant Program, which is planned to launch around February 2026.
The draft guidelines establish two grant categories. Tier 1 grants, generally under $50,000, are designed to be lower barrier and more accessible to smaller organizations and community-based efforts. Tier 2 grants, ranging from $50,000 to $500,000, are intended for larger and more complex projects such as habitat restoration, wildfire fuel reduction, watershed improvements, and capital projects that expand public access.
Eligible applicants include nonprofit organizations, public agencies, and tribes. Firewise Neighborhoods can apply with the Firesafe Council as a partner and fiscal sponsor.
The guidelines being considered by the Board of Supervisors tomorrow outline eligibility requirements, application materials, scoring criteria, reporting expectations, and financial policies, including limits on advances and a standard allowance for nonprofit indirect costs. If the Board accepts the draft, staff will incorporate feedback from the Board and the Community Oversight Advisory Board and return in January 2026 with final guidelines and application materials. No Measure Q funds will be awarded at this time; this action would set the framework for future competitive grant cycles.
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Image: A man experiencing homelessness in Santa Cruz. Federal funding impacts threaten the County's recent reductions in homelessness and will push more costs on local jurisdictions. Photo Credit: Richard Masoner via Flickr
We've all heard that H.R. 1 and other federal policy changes will have impacts. This agenda item summarizes the costs that the County can expect in the coming year due to the changes
Key near-term changes include new CalFresh (SNAP) work requirements starting February 1, 2026, elimination of some Covered California subsidies in 2026, and expanded Medicaid (Medi-Cal) work requirements and more frequent redeterminations beginning in January 2027.
In housing, the Emergency Housing Voucher program will sunset in December 2026, years earlier than originally planned, affecting more than 250 local households that used this program to get off of the streets. This program, effectively an extension of Section 8, was the key tool that the County used to reduce homelessness by 21.5% in 2023 and 20% this year to achieve the lowest level ever counted. Meanwhile, HUD’s withdrawal and reissuance of the Continuum of Care funding notice creates uncertainty for homeless services grants expiring in early 2026, including a $1.2 million/year housing subsidy program.
FEMA funding remains uncertain, with the current federal continuing resolution expiring January 30, 2026, potentially delaying reimbursements.
The potential dollar impacts to the County are substantial. Staff estimate increased General Fund costs of about $1.5 million in FY 2026–27 to administer CalFresh as federal cost sharing shifts, with a longer-term risk of up to $11.5 million if future federal SNAP penalties are passed down to counties. Healthcare impacts could include $3.5–$7.5 million in added Medi-Cruz (indigent care) costs and an estimated $12 million in lost revenue across County health centers and behavioral health as coverage declines.
Housing assistance faces possible federal reductions of $9–$15 million to the Housing Choice Voucher program, impacting nearly 6,000 households.
On disaster recovery, the County is currently owed $61.7 million in unpaid FEMA reimbursements and needs at least $15 million in FY 2026–27 to avoid up to $4 million per year in added disaster-debt costs.
Overall, early analysis suggests a potential reduction of up to $40 million in federal revenue to the County General Fund, with limited State backfill. In response, the County is ramping up inter-departmental planning, community engagement in January–February 2026, advocacy with state and federal partners, and exploring options like joining the County Medical Services Program (CMSP) to help manage rising indigent care costs. Staff will return to the Board with more detailed fiscal updates as part of the February mid-year budget and the development of the FY 2026–27 Proposed Budget.
Item 11.Consider approving in concept “An Ordinance Amending Section 7.130.110(H) of the Santa Cruz County Code Regarding Grounds for License Revocation of Retail Commercial Cannabis Licensees” ... for license revocation associated with patrons who engage in intoxicated driving...
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Image: Patrons at Harvest's, a members-only cannabis lounge in San Francisco. Photo Credit: Leah Millis / SF Chronicle
The Board will consider proposed updates to the County’s cannabis ordinances related to on-site consumption and public safety. Earlier this year, the Board approved changes allowing cannabis consumption at certain licensed retail locations, including existing dispensaries and cannabis farm retail sites. At that time, the Board directed staff to return with additional ordinance language addressing accountability if cannabis consumption at these locations is linked to impaired driving that causes harm.
The items before the Board tomorrow would approve in concept amendments to the County Code that add new grounds for license revocation. Under the proposed changes, the County would have authority to suspend or revoke a retail commercial cannabis license or a cannabis farm retail license if a patron who consumed cannabis at an authorized location is later found, through a criminal or civil proceeding, to have driven under the influence of cannabis and caused injury to people or damage to property. The ordinance requires that law enforcement determine the individual was leaving the licensed premises in order to establish a direct connection between the business and the incident.
The Planning Division conducted a comprehensive fee study with the help of Revenue Cost Specialists and has proposed fee increases to raise another $794,400 per year to cover the cost of operations.
County Code is currently ambiguous on how new rental housing can meet the 15% inclusionary affordable housing requirement and provides housing developers the option of choice. This proposed ordinance would more clearly define alternatives and give decision-making power to the Planning Commission. |
District 1 CEO Tour and Town Hall
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Image: Supervisor Koenig and County Executive Officer Nicole Coburn review the status of county facilities at Winkle Park.
Last week, the First District Office spent three action-packed hours touring our new County Executive Officer, Nicole Coburn, around District 1. This tour focused on the Live Oak, Soquel and Pleasure Point areas where we could inspect a large number of county parks and roads firsthand. We also looked at many of the sites proposed for housing development and discussed what more can be done to ensure that county infrastructure keeps pace with increased demands.
If you’d like to meet CEO Coburn yourself, please save the date for our town hall in the new year:
Wednesday, February 11, 6:00 PM - 7:30 PM Shoreline Middle School
There we will discuss the County’s next iteration of the Strategic Plan, along with other hot First District topics. Don’t hesitate to reach out to our office directly if there’s something specific you’d like us to address during the town hall in February.
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Image: Touring the 9-1-1 Regional Dispatch Center with General Manager Amethyst Uchida. The heads-up display on the right shows huge amounts of information that dispatchers must handle quickly to help save lives.
Last week, I visited the Santa Cruz Regional 9-1-1 dispatch center, also known as NetCom, to get a firsthand look at how our primary Public Safety Answering Point operates and supports our community. NetCom was created as a Joint Powers Authority in 1996 to provide 911 and public safety dispatch services for the Sheriff’s Office, city police and fire departments, fire districts, and medical response partners across Santa Cruz County and into San Benito County. If you call 9-1-1 or even the non-emergency line for most of our local agencies, they're the ones picking up.
Seeing the team in action and learning more about how they handle hundreds of thousands of calls each year gave me a huge appreciation for the coordination, technical expertise and focus required to keep emergency resources moving efficiently. NetCom dispatchers support wireless and text-to-911, enable accurate caller location technology, and serve as the vital link between the public and safety organizations around the clock.
A huge thank you to NetCom staff for the service you provide our community every day – particularly throughout the holidays.
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Image: people participating in a group exercise
Is your New Year's resolution to get more involved in your community? Look no further! There are many great opportunities to represent the First District on these County Commissions: Commission on Disabilities and Housing Advisory Commission.
Additionally, the County has several commissions seeking at-large representation, including the Childhood Advisory Council, the Housing Advisory Commission, and the In-Home Supportive Services Commission. You can view all at-large opportunities here.
All County commissions use the same common application. To apply, click below:
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SCCRTC – Elderly and Disabled Technical Advisory Committee
The Santa Cruz County Regional Transportation Commission is seeking a First District representative and alternate member for the Elderly and Disabled Technical Advisory Committee. Click here to find out more about position requirements and meeting schedule details.
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Image: The County Government Center at 701 Ocean St. Tomorrow's Board of Supervisors meeting will be held in the basement as Board Chambers are under renovation. Photo Credit: Stephen Baxter / Santa Cruz Local
Tuesday, December 16 - Board of Supervisors Meeting starting at 9:00 AM. The meeting will be held via Zoom and in person at the County Government Center Community Room, located in the basement at 701 Ocean Street, Santa Cruz, CA 95060.
Wednesday, January 7 - Office Hours from 1:00 PM to 3:00 PM. Come visit me at the Sheriff's Center, 5200 Soquel Ave, Santa Cruz CA 95062. Bring your questions and meet with me one-on-one. As always, first come, first served.
Tuesday, January 13 - Board of Supervisors Meeting starting at 9:00 AM. The meeting will be held via Zoom and in person at the Scotts Valley Council Chambers, 1 Civic Center Drive, Scotts Valley CA 95066.
The County Board Chambers are currently under renovation through January 2026. Board meetings will be held at various locations throughout the County of Santa Cruz during this time. The Fall 2025/Winter 2026 meeting schedule with updated locations can be found here.
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