A visual overview of Santa Cruz County’s proposed 2023-24 budget compared to the last two years of data. (Courtesy – Santa Cruz County)
SANTA CRUS — Santa Cruz County officials shared an outline of the proposed 2023-24 budget this week at the first of four scheduled hearings on the subject over five weeks.
A lengthy presentation from county officials shared with the Board of Supervisors at Tuesday’s meeting showed that the proposed $1.1 billion budget would not help local officials in a situation of widespread economic uncertainty and economic uncertainty. It has been at the center of a delicate balancing act that seeks to maintain the interests and priorities of the community within. A large deficit is expected across the state.
“Our local economy certainly plays a role, but we’re really affected by what’s happening at the national and state level, and that has a lot to do with our budgets.” said Santa Cruz County Administrator Carlos Palacios. “There are signs all around us that economic uncertainty is creeping in.”
After several years of surpluses, Palacios expects the state to run a $30 billion deficit next year. $55 billion General Fund Surplus in the current year’s budget.
County Budget Director Marcus Pimentel, who led Tuesday’s roundup, said the county is projecting a deficit of about $8 million to $10 million a year, adding that the county is “systematically underfunded” and that it’s going to be tough. I agree with previous claims that it is exacerbating the situation.
Pimentel said the county collects 13 cents on every dollar in property taxes, which is far less than neighboring counties despite its high proportion of unincorporated residents.
Santa Cruz County collects about $550 in property and sales taxes per resident, and more than 50% of its 270,000 residents live in unincorporated areas. However, Santa Clara County earns nearly $11,000 per resident despite less than 10% income. 1.8 million inhabitants live in an unincorporated area, according to the county budget website.
Pimentel told the Sentinel: Proposal 13, passed by voters in 1978, effectively locking the county in at its current property tax rate. He said the only avenues of relief were long-overdue reforms by state officials or dramatic developments in commerce and retail, encouraged through the proposal, but historically not for local officials or residents. Said it was not accepted.
Likewise, Pimentel said the county is struggling with a sales tax system that has not adapted to modern consumer trends.
according to staff reportIf someone makes a purchase from a local retailer in an unincorporated area, the county receives a 19.4% share, but if the purchase is made online, all sales tax collected goes to the county where the fulfillment center is located. will be sent to
Pimentel said that because states are not affected by this discrimination and still collect the same sales tax rate, some counties have suffered from this discrimination and other counties are now subject to this discrimination. He explained that this is a particularly difficult problem to solve because it is heavily dependent on technology.
“Because it doesn’t directly affect state legislators … it’s hard for them to take on this challenge knowing half the people will hate you and half will love you.” He said.
Official reports say the county is losing nearly $5 million annually in sales tax collections as a result of the rule.
But the news wasn’t all bad.
The proposal includes support for the continued progress of a new South County Government Center, a Consolidated Permit Center, an Aging Master Plan, and a new Child Crisis Stabilization Center in Live Oak.
The proposal includes a balanced $731.5 million General Fund that will absorb approximately $12 million in salary and benefits increases for existing staff.
Palacios said the county was able to secure the purchase of Watsonville Community Hospital last year, along with a $115 million state grant to help develop the Coastal Rail Trail, so grant awards and funding are available. He said the county has proven capable in terms of
“Looking at the projects we can work on in the face of this situation, it’s really amazing how many great things in the areas of health, public safety and parks that you have in mind — additional things. ‘, recreation, and housing,’ said supervisor Bruce McPherson, praising the staff’s efforts.
Still, he and other supervisors have cut county jobs, including more than $300 million in deferred maintenance of facilities and roads, implementing costly new public service programs, and funding new emergency communications systems. It was noted that He has $100 million in reimbursement from past and current disaster response.
“I feel like there’s a bit of Groundhog Day in this one,” said board chairman Zach Friend. “No matter what the situation,[the county administration]gives us the same explanation every year: we are systemically underfunded. Yes, departments that are being asked to do more with less are struggling, and one day the band will break up.”
