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Santa Clara County Prepares to Scale Back Mental Health Services as Budget Crisis Deepens

Federal reductions combined with state funding shifts are squeezing the county’s behavioral health budget.

Overview

  • The Behavioral Health Services Department projects a $100 million deficit next fiscal year, prompting a reassessment of expansions and possible reductions to preventive programs such as mobile crisis response.
  • Proposition 1 redirects dollars and requires higher spending on acute care and housing, cutting local flexibility and reducing county revenue by about $6.6 million annually.
  • County Executive James Williams says mitigation recommendations for behavioral health will go to the Board by May 1, with a pledge to preserve core programs where possible.
  • The broader shortfall stands at roughly $470 million, leading to a midyear move that eliminated 365 positions, about 300 of them vacant, with roughly 60 employees reassigned rather than laid off.
  • Even with Measure A expected to generate about $330 million annually and $60 million in higher revenue projections, an estimated $270 million gap remains, and officials warn deeper cuts or layoffs could come in June as the county also boosts state lobbying by $1 million one time.