Santa Clara Wrestling With Massive Shortfall

Santa Clara County is expected to slash a number of open positions amid a $200 million to $600 million shortfall. The good news is that the spending plan being considered by county supervisors will avoid immediate layoffs. It will address about $144 million of the shortfall. Further reductions will be needed next fiscal year.

Positions in the Office of the County Executive, the Office of Sustainability, Division of Equity and Social Justice (DESJ), and the Liability and Property Insurance Division of the Risk Management Department are all potentially on the chopping block.

Santa Clara is anticipating a loss of $24 million from delinquent tax payments and penalties because of an an executive order mandating property tax relief for Californians. And it’s grappling with these fiscal difficulties amid great national uncertainty.

"On everyone's mind right now is that we don't have the additional federal stimulus money … many of us hoped for," Budget Director Greg Iturria said, as quoted by San Jose Spotlight. "The state budget was adopted with automatic trigger cuts. If the federal government doesn't provide at least $14 billion in new flexible aid … we need to be prepared for another round of cuts… We want to have some set aside to help us prepare for that."


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