SANTA CRUS — The first of a series of hearings to consider Santa Cruz County’s newly proposed annual budget is scheduled to begin this week.

The hearing will be hosted by the Santa Cruz Oversight Board at its meeting on Tuesday for the initial review of the 2023-24 budget, which totals over $1.1 billion in spending (slightly less than the current budget’s $1.14 billion). It is expected to be.

The proposal includes a balanced $731.2 million general fund, according to a release from the county. However, local leaders say the county faces significant short-term and long-term challenges due to uncertainties in financial projections at the local, state and national levels.

“We face significant challenges such as climate change and natural disasters, aging infrastructure and facilities, and major changes to the state’s behavioral health system,” wrote Santa Cruz County Administrator Carlos Palacios. ing. budget message. “To meet these challenges, we are continuing to invest in county officials, bringing our services closer to those who need them, and making targeted investments to help all residents thrive.”

County officials expect the budget deficit to exceed $10 million by 2028, and revenue is expected to increase by 0.4% next year.according to staff report, the county is estimated to have deferred $300 million in facility and road maintenance costs while awaiting reimbursement of up to $100 million for past and current disaster response and recovery services. Cannabis business taxes have also dropped significantly.

However, despite these financial headwinds, the county has been working on a new South County Government Center in Watsonville, improvements to the juvenile detention center, development of a Child Crisis and Stabilization Center, a new emergency warning system, plans for a coastal rail trail, and development of transportation. , leaving room for important regional investment. An aging population master plan and plans to open new Project Home key locations for permanent supportive housing.

Officials say part of the problem is that the county is systematically underfunded. about 50% 268,108 county residents A higher percentage of people live in unincorporated areas than in virtually all neighboring counties.

According to the announcement, the county collects property taxes of 13 cents, which is also much less than neighboring jurisdictions.

The relatively low percentage of online sales tax is also cited as a major drawback.

Following the first meeting on Tuesday, three additional hearings to scrutinize the budget are scheduled for May 30, May 31 and June 13.

A detailed interactive budget tool is available at: co.santa-cruz.ca.us.

if you go

What: Santa Cruz County Board of Supervisors Budget Hearing.

When: Tuesday at 9am.

Location: 701 Ocean St. Room 525 or Zoom: us06web.zoom.us/j/89949240497.