BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Receive an Informational Presentation from the County of Santa Clara on Actions Related to Federal Budget Cuts and Consider Taking a Position on Measure A.
End
RECOMMENDATION: Recommendation
A. Receive an informational presentation from County of Santa Clara (County) staff on the County’s actions and response to federal budget cuts; and
B. Consider taking a position on Measure A.
Body
SUMMARY:
In response to the impacts posed by H.R. 1, the Santa Clara County Board of Supervisors held a special meeting on August 7, 2025, where the Board of Supervisors voted unanimously to place a temporary sales tax increase on the ballot for consideration by the voters at the special election being held on November 4, 2025.
The ballot language is as follows:
To help protect our community from severe federal cuts enacted by President Trump and Congress; support critical local services such as trauma, emergency room, mental health, burn, and cancer care; and reduce the risk of hospital closures at Santa Clara Valley Healthcare and other service cuts-shall the County of Santa Clara adopt a five-eighth cent general sales tax for 5 years, providing $330 million annually that cannot be taken by the federal government and is subject to independent audits/oversight?
A “yes” vote is a vote to approve a sales tax of 0.625% within the county for five years.
A “no” vote is a vote to not approve the sales tax.
Measure A states that it is being proposed to address significant federal funding cuts created by the congressional enactment of H.R. 1 on July 4, 2025. H.R. 1 cut federal support for public services, including substantial reductions for Medicaid (known as Medi-Cal in California) and the Supplemental Nutrition Assistance Program (SNAP) (known as CalFresh in California). Measure A states that Medicaid is the single largest revenue source for Santa Clara Valley Healthcare’s hospitals and clinics.
Measure A states that the County anticipates more than $1 billion annually in lost revenue due to H.R. 1, and that the estimated $330 million in annual revenue from the Measure A sales tax would partially offset the loss of federal funding from H.R. 1. The county-wide sales tax proposed by Measure A would be a general tax, meaning the County could use the funds to support Santa Clara Valley Healthcare hospitals and clinics, provide social services, or for any other legitimate governmental purposes.
If approved by the voters, the sales tax would begin on April 1, 2026, and would expire after five years on April 1, 2031. Under state law, Measure A requires approval by a majority of votes cast in the county.
ENVIRONMENTAL JUSTICE IMPACT:
There are no direct Environmental Justice impacts associated with this item, as this is an informational presentation and a position taken by the Board does not enact the ballot measure discussed above.
FINANCIAL IMPACT:
There is no financial impact associated with taking a position on this item.
CEQA:
The recommended action does not constitute a project under CEQA because it does not have the potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
None.
UNCLASSIFIED MANAGER: Manager
Marta Lugo, 408-630-2237