Santa Cruz County declares state of fiscal distress, places sales tax measure on ballot

Officials in Santa Cruz County have declared a state of fiscal distress and are placing a sales tax measure on the November ballot, citing cuts to federal and state funding.

On Tuesday, the Board of Supervisors approved the declaration and the ballot measure, a one-cent transaction and use tax that would be in effect for five years.

"Communities across the country are facing the consequences of significant changes in federal funding," said Supervisor Monica Martinez, who chairs the board. "Today's action gives the people of Santa Cruz County the opportunity to decide whether they want to be part of a local response that lifts up and protects their fellow County residents."

The board said they made the declaration due to what they described as "significant federal and state funding reductions" impacting safety net services, such as healthcare, emergency medical services, nutrition assistance, behavioral health and other essential services.

County officials said the changes would result in more than $150 million in increased costs and reduced revenues for the county and its community partners over five years.

"Our community has a choice to make: Do we want to continue making progress, helping to preserve essential services and meet basic needs for so many residents, or do we want to risk losing ground?" said county CEO Nicole Coburn.

If approved by voters, the measure would raise about $27 million a year over the same period.