Image: State Capitol Building. Credit: California State Association of Counties
Governor Newsom's 2026-27 May Revision, which was released yesterday, offers some welcome fiscal news at the state level, projecting a balanced budget through 2028 and maintaining nearly $30 billion in combined reserves, but for Santa Cruz County the picture is more complicated. The May Revision falls well short of what counties need to absorb the combined blows of H.R. 1 and state-level Medi-Cal cuts, and as I have said throughout this budget season, the deficit we are facing is not driven by temporary conditions. The state's choice to prioritize its own rainy day fund over county relief makes the fiscal challenges facing counties even more difficult. I have joined my fellow supervisors in supporting the California State Association of Counties' request for $1.9 billion in 2026-27 state funding to stabilize the safety net, including resources to protect Watsonville Community Hospital and the eligibility workers who keep residents enrolled in Medi-Cal and CalFresh. The May Revision provides only a fraction of that ask, and county leaders across California have been clear that this proposal leaves local governments unable to sustain critical safety net services.
Those shortfalls flow directly into our proposed $1.29 billion county budget. The plan already relies on $43 million in one-time funds and draws our reserves down to 10.4%, which buys us time but does not solve the structural problem. The May Revision's proposal to shift $233.6 million in IHSS costs from the state to counties is a burden that lands hard on a county that takes in just 13 cents of every property tax dollar. On top of that, we are looking at a projected $30 million annual hit by 2028 from combined federal and state cuts, plus roughly $4 million per year in additional staffing costs just to administer new federal work requirements. None of that is sustainable without real partnership from Sacramento. I will keep pressing the state to treat counties as partners rather than asking us to absorb pain we did not create and cannot afford to carry alone.
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Image: CalFire firefighters gather at the Soquel Demonstration Forest.
Tomorrow, the Board will have the honor of recognizing three outstanding members of the Santa Cruz County Fire Department who went above and beyond in 2025. Engineer Joseph Borg is this year's Career Firefighter of the Year, Captain Andy Siegel is the Volunteer Firefighter of the Year, and Captain Doug Aumack has been named Top Responder. Captain Siegel will also be recognized for a remarkable milestone: 25 years of service with the Santa Cruz County Fire Department.
These awards are a reminder of the dedication it takes to serve our community in one of the most demanding roles imaginable. Whether responding to emergencies or showing up for their neighbors in quieter moments, our firefighters give of themselves in ways that do not always make the news but make an enormous difference. Please join me in congratulating Engineer Borg, Captain Siegel, and Captain Aumack on this well-deserved recognition.
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Image: Law enforcement wearing masks. Credit: ABC10.com
Also on tomorrow's agenda, we will receive the second report from the S.H.I.E.L.D. Subcommittee, which is the ad hoc group established in January to help the County prepare for and respond to increased federal immigration enforcement activity. Since its first report in March, the subcommittee has made progress on several fronts. A countywide ordinance prohibiting the use of County property for civil immigration enforcement took effect in April, with signage now being installed at twenty County properties. A new Federal Immigration Enforcement Engagement and Oversight Policy has been developed to give all County staff clear, consistent guidance on how to handle encounters with federal agents at County facilities. The Office of Inspector General also completed an audit of the Sheriff's Office's use of automated license plate reader data, finding no evidence that the data was being accessed for immigration enforcement purposes and noting that the Sheriff's Office responded cooperatively and has since developed a comprehensive written policy governing its use of that data.
Additionally, the Board will consider adopting a resolution in support of Senate Bill 627, the No Secret Police Act, which took effect January 1, 2026 and requires law enforcement officers, including federal agents operating in California, to display visible identification and refrain from concealing their identity during enforcement activities. The subcommittee has been meeting regularly with community organizations, regional partners, and neighboring counties to share information and coordinate preparedness efforts, and will return to the Board with a further update no later than September 8, 2026.
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Image: a rail cart crossing over the Antonelli Trestle. Credit: Archie Moreno & The Little Fox Railcart
The Cotoni‑Coast Dairies National Monument has been growing in popularity, and the Santa Cruz North Coast Rail Trail is already attracting hundreds of visitors even while it remains under construction.
This item explores ways to build on the North Coast’s momentum by pursuing federal funding to close gaps in the regional bike network and investigate the potential for North Coast rail service. It would authorize County staff to work with partners such as the Santa Cruz County Regional Transportation Commission, Roaring Camp Railroads, the California Coastal Commission, California State Parks, and Caltrans to coordinate planning and grant applications.
Last month, the Santa Cruz County Regional Transportation Commission announced the opening of a new paved parking lot at Panther Beach, marking the first completed milestone of the North Coast Rail Trail project. Full completion of the North Coast Trail to Davenport, California is planned for fall of this year.
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Image: Cover graphic from the Santa Cruz County Safety Action Plan
The Community Development and Infrastructure (CDI) Department has developed the
Santa Cruz County Safety Action Plan (SAP), funded through the Federal Highway
Administration’s (FHWA) Safe Streets and Roads for All (SS4A) program, to advance
the County’s adopted Vision Zero goal of eliminating traffic fatalities and serious injuries
by 2035. The SAP provides a data-driven framework to identify, prioritize, and
implement proven safety improvements and support future grant funding applications.
The SAP identifies traffic safety needs through analysis of crash data and input from
staff, stakeholders, and the community. Using crash data from the California Highway
Patrol Statewide Integrated Traffic Records System (SWITRS) database, the County
evaluated safety trends, high-crash locations, and severe crash patterns. Between
January 1, 2019, and December 31, 2023, 1,695 injury crashes, including 32 fatal
crashes and 259 severe injury crashes were documented on County maintained
roadways. Key findings include: - 54% of injury crashes occurred at unsignalized intersections
- 31% of injury crashes occurred along roadway segments
- 50% of severe injury crashes occurred at unsignalized intersections
- 60% of fatal crashes occurred on roadway segments
The analysis identified key emphasis areas to guide future corridor improvements,
education efforts, and capital projects. Approving the SAP will position the County to
pursue funding opportunities, including Highway Safety Improvement Program (HSIP)
and SS4A grants, while supporting continued collaboration with regional partners to
improve safety for all roadway users.
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Image: First District residents providing feedback earlier this year on the proposed Strategic Plan elements
The County's proposed Strategic Plan 2026–2032 is before the Board this week, and while strategic plans can feel abstract, this one will directly shape how the County spends its time and money for the next six years, so it's worth paying attention to. The plan was built on an extensive community engagement process with more than 4,500 points of contact across all five supervisorial districts, and it organizes the County's priorities into six focus areas: Housing and Infrastructure, Health and Wellbeing, Safety and Justice, Environment and Climate, Access to Basic Needs, and Economy and Job Growth. That's a solid foundation. My concern is with what isn't prominent enough.
Roads, culverts, and parks consistently rank among the top issues my office hears about from District 1 residents, and for good reason. Deteriorating roads create safety hazards, failing culverts cause flooding and damage to property, and underfunded parks leave communities without the gathering spaces they need. These aren't minor inconveniences; they are the basic infrastructure residents depend on every day. The plan acknowledges infrastructure maintenance, but I will be pressing for stronger, more explicit commitments and dedicated funding that match the scale of what we're actually facing on the ground. A strategic plan is only as good as the resources aligned behind it.
Tuesday's action asks the Board to direct staff to gather additional feedback before returning with a final plan for approval on June 30th. I intend to use that period to push for clearer targets and accountability measures around investment in roads, drainage, and parks specifically. Thanks to the County staff who put significant work into this process. If you have thoughts or feedback to share on the proposed version of the plan, don't hesitate to contact my office at first.district@santacruzcountyca.gov.
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Consent Agenda items are voted on with one motion at the beginning of the meeting. Supervisors may still comment on, ask questions about, or propose alternative actions for Consent Agenda items, and any item may be pulled to the Regular Agenda at the request of a Supervisor to allow full public comment and greater discussion.
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Sanitation infrastructure isn't a topic that comes up often in Board meetings, but for many District 1 residents, particularly those living in mountain communities, tiny homes, and non-conforming dwellings; rather, it's a daily reality and a significant financial burden. This item closes out a pilot program I sponsored that my office helped launch in the aftermath of the CZU fires, when it became clear that conventional septic systems are simply out of reach for many rural residents. Septic upgrades in the Santa Cruz Mountains routinely run $100,000 to $180,000, and the pilot revealed something that shouldn't surprise anyone who has spent time in these communities: people are already improvising, including disposing of waste in household trash, composting incorrectly on their properties, or facing red-tags they can't afford to resolve. The pilot program, conducted in partnership with Design4Earth (formerly GiveLove), successfully processed over 2,500 pounds of material and met EPA Class A Biosolids and CalRecycle pathogen reduction standards, proving the approach works from a technical perspective. What doesn't work yet is the regulatory environment: California has no clear legal pathway for container-based sanitation systems, and that needs to change. This report closes the current pilot phase, but it's certainly not the end of the conversation. I intend to keep pushing on the septic affordability crisis and explore what a next phase could look like.
The Board will receive the second quarterly update on the financial sustainability of the County's Health Centers Division. On the positive side, clinician visit volume is up 35% since 2023, generating an additional $17 million in payments. Radiology remains the core problem: costs are running at $553,783 this fiscal year against projected revenue of just $84,265, and breaking even would require roughly seven times current appointment volume. The County covered part of the gap with $509,816 in one-time General Fund support this year. Two strategies are in motion to address the structural deficit: partnerships with other Federally Qualified Health Centers to increase radiology volume, and a state rate re-evaluation expected to take 18 months but potentially yielding $5.6 million in additional annual revenue. Laboratory services have moved to an on-site Quest Diagnostics model. A third quarterly report is expected later this year.
We will consider authorizing $1.5 million in County Housing funds ($500,000 each) to three affordable housing projects responding to a Notice of Funding Availability issued in March 2026. The funds go to: MidPen Housing for rehabilitation of the 68-unit Parkhurst Terrace community in Aptos, including new roofing; MP Good Shepherd LLC for predevelopment of new affordable rental housing at 2727 Mattison Lane in Santa Cruz; and New Horizons Affordable Housing (a Housing Authority affiliate, in partnership with MidPen) for predevelopment at sites on Chanticleer and 17th Avenue in Santa Cruz. All three sites are included in the County's 2023-2031 Housing Element sites inventory, and the awards directly support the County's Regional Housing Needs Allocation, which requires the County to plan for and facilitate production of new lower-income housing units over the eight-year Housing Element period.
Predevelopment funding is a critical tool; without it, nonprofit developers often can't cover upfront costs like design, environmental review, and permitting, and shift their focus to jurisdictions that do offer this support. No General Fund dollars are involved; funding comes from the Affordable Housing Impact Fee Fund, Low and Moderate Income Housing Fund, and state PLHA Grant funds.
This item schedules two public hearings for June 9, one on our 2026 Annual Code Update, which proposes amendments to the General Plan, Local Coastal Program, and County Code to improve permitting and regulatory clarity, and one on updated Accessory Dwelling Unit regulations designed to align with recent State law and make it easier to build more housing in our community.
Both hearings will be held June 9 at 9:00 AM at 701 Ocean Street, Room 525, Santa Cruz (and via Zoom). I want to make sure you have as much advance notice as possible so you can participate. I'll provide more details about each item prior to the June 9 Board meeting.
We will be taking action on a Public Improvement and Reimbursement Agreement with affordable housing developers Pacific West Communities, Inc. and Linc Housing Corporation to construct a new eastbound right-turn lane at the intersection of Soquel Drive and 41st Avenue, an improvement that will meaningfully reduce congestion and delay times for eastbound traffic along one of our busiest corridors. The project is tied to a six-story, 100% affordable rental development under construction at 2755 and 2831 41st Avenue, which will bring 253 deed-restricted affordable units to the southwest corner of 41st and Soquel Drive.
Many of you know that the intersection of 41st and Soquel has long been a pain point for traffic in our community, and this right-turn lane has been on our radar for some time. The turn lane is a required frontage improvement to address the traffic impacts of this new development, and I'm glad we found a structure that gets it built without tapping the General Fund. The project includes not just the new turn lane but also updated traffic signal equipment, a new concrete corner island, curb, gutter, and sidewalk improvements, new storm drainage, and new striping. The developers will bear the full estimated cost of approximately $1.2 million, and an initial deposit of $150,000 kicks off Phase 1 design and engineering, with full construction funding required before a shovel goes in the ground.
You may view the entire agenda for the May 19, 2026, Board of Supervisors meeting here.
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Image: The Santa Cruz County Building
Tuesday, May 19 - Board of Supervisors Meeting, 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.
Friday, May 22 - Santa Cruz METRO Meeting, 9:00 AM. The meeting will be held on Zoom and in person at the METRO Administrative Office located at 110 Vernon Street, Santa Cruz, CA 95060. The agenda and Zoom link will be posted here.
Tuesday, June 9 - Board of Supervisors Meeting, 9:00 AM. The meeting will be held via Zoom and in person at the County Government Center Board Chambers on the 5th Floor.
Wednesday, June 10 and Thursday, June 11 - County Budget Hearings, 9:00 AM. The Budget Hearing schedule outlining when specific department budgets will be heard is expected to be published in the coming weeks. Budget hearings will be held via Zoom and in person at the County Government Center Board Chambers on the 5th Floor.
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