Santa Clara County’s eleventh hour ballot initiative to combat the massive federal cuts laid out in President Donald Trump’s landmark tax and spending bill was trending favorably after first returns Tuesday evening — much to the relief of local officials and advocates who feared the cuts would decimate the county budget and force critical health care services to close.
The county, which operates the second-largest public hospital and health care system in the state, is projecting to lose roughly $1 billion in federal revenues annually due to the cuts. Measure A — a proposed 0.625% increase to the local sales tax rate — is expected to fill a third of that budget gap, generating $330 million annually if passed. It will last five years, helping the county weather the worst of the fiscal storm.
After first returns, 57% of voters cast ballots in favor of Measure A. The measure needs a simple majority to pass.
The ballot initiative is a key part of the county’s efforts to combat the funding loss, which they said could lead to shuttering health services or hospitals entirely as more than 50% of the Santa Clara Valley Healthcare system’s revenues come from Medi-Cal — California’s Medicaid program for low-income and disabled residents.
Santa Clara County currently operates four hospitals and 15 clinics, with its flagship hospital, Valley Medical Center, the only dual trauma center and certified burn center in the entire Bay Area.
But opponents of Measure A say that taxes are already too high. The local sales tax rate is currently 9.125% countywide, and the 0.625% increase would put Campbell, Milpitas and San Jose at a 10% sales tax rate or higher.
The opposition, which was led by former Saratoga Councilmember Rishi Kumar, has also decried the county’s decision to make it a general sales tax — the revenue raised isn’t restricted to any one use so the county could use it on other priorities instead of health care.
This is a breaking news story. Check back for updates.