San Mateo County Executive Officer Mike Callagy, published a budget recommended $3.4 billion for fiscal year 2022-23 that focuses on economic recovery from the pandemic, ending homelessness, and promoting social justice and equity.
“The economic fallout from the COVID-19 pandemic hit many of our communities particularly hard,” Callagy said. “This budget seeks to help put those individuals and families, and indeed all vulnerable families, on a more secure financial footing by making investments in programs and services that will lead to long-term recovery.”
While the recommended budget is balanced, Callagy warns that the county faces risks due to potential changes in state law and factors beyond the county's control.
These risks, he noted, include the state diverting significant revenue from the county while inflation threatens to increase the cost of numerous capital projects.
The release of the recommended budget for fiscal year 2022-23 is the first step in the budget process. Callagy will present his recommendations to the Board of Supervisors during three days of public hearings beginning June 28, 2022, while the Board will adopt the final budget in September after considering revisions.
The Recommended Budget emphasizes investments in four priority areas:
Pandemic recovery: Provide continued relief to economically impacted residents, small businesses, and nonprofits, including $20.5 million for housing-related needs and $9 million for child care and after-school learning programs for socioeconomically disadvantaged students.
Equity and social justice: Implementation of decision-making tools to help direct investments toward communities most in need, including adding resources to help overcome language, cultural, and social barriers to community engagement.
Lack of housing: Seeking to effectively end homelessness with the completion of the County's first Navigation Center ‒ shelter ‒, a 240-unit complex with a variety of services designed to help place people into permanent housing, while five recently purchased hotels are used as temporary or permanent housing.
Capital projects: Ensure the County is prepared to serve the most vulnerable by continuing to renovate the San Mateo County Health campus in San Mateo and replacing the Cordilleras Mental Health Center.
However, he said, inflation and supply chain problems threaten to increase the costs of these projects.
“This budget is consistent, stable, and aligned with the priorities of this Board: ending homelessness; continuing economic recovery efforts focused on socially vulnerable populations, children and families, housing needs, and supporting local business communities; and emphasizing racial and social equity,” Callagy said in a message accompanying the recommended budget.
At the same time, Callagy warns that “significant resources” are at risk. That’s because of potential changes to state law that could change funding formulas for the county’s share of vehicle license fees and excess revenues from the Educational Revenue Augmentation Fund, or excess ERAF, which are surplus local property taxes returned by the state after local school districts pay their taxes.
In his budget message, Callagy outlines the elimination of 31 positions within the Probation Department due to declining caseloads resulting from changes in state law and a decline in the juvenile detention center population, returning a total of $4.8 million to the General Fund.
In addition to adding a one-time grant of $2.38 million to Behavioral Health and Recovery Services to expand programs that seek to reduce cannabis and alcohol use and support additional programs.
Finally, he said, he will seek to offset a deficit at San Mateo Medical Center with $5.5 million to help with operating costs.
You may be interested in: Redwood City School District offers tools for families to cope with violent events
