July 1, 2008

Council Report

County wraps up budget, braces for state funding cuts

By County Supervisor Ken Yeager
Special to the Times

After weeks of working to close a $172.4 million deficit, the Board of Supervisors officially approved Santa Clara County’s 2008-2009 budget on June 24.

Using a mix of one-time funding, departmental reductions and reserve funds, the board was able to save the programs that our residents depend on in times of need. I have worked with my fellow supervisors and department managers to make sure that the cuts we make will have as minimal of an impact on our service levels as possible.

But just as we finish this round of budget workshops and hearings, more hard work looms ahead for the county as the state works to solve its own deficit of more than $10 billion. The state legislature is in the midst of budget deliberations, and the impacts of the yet-to-be-adopted state budget on our county remain to be seen.

The board of supervisors will once again tackle the budget in October with a new round of budget hearings to cope with any cuts in funding from the state budget. Santa Clara County receives a significant share of its funding from the state, and any cuts to those funds mean that the county must make up the difference. Although our budget includes more than $35 million in reserves to help offset any cuts at the state level, we need to be prepared for more drastic reductions.

One of my biggest worries is that the state’s cuts could affect the levels of service at the county-operated Valley Medical Center. Many Santa Clara County residents visit VMC for regular appointments and specialized care, but VMC plays a larger role as the county’s major safety net provider. When residents are severely injured in car accidents or if a disaster strikes the South Bay, VMC’s trauma center provides emergency medical services. VMC’s specialized programs — such as its burn and stroke centers — give the specific rehabilitation assistance that our residents need.

Because of all the services that VMC provides to every county resident, the hospital receives a large portion of funding from the county. However, because of this year’s immense deficit, VMC has had to use more than $40 million of its reserves to cover its basic operating costs. VMC can’t afford to continue this trend, and the county can’t afford to lose the center’s vital programs.

VMC is also in the middle of retrofitting its buildings to bring them up to current seismic standards. This massive, $790 million project is in danger of missing the 2013 deadline to complete the upgrades without adequate funding. If VMC doesn’t complete the project, it will lose 272 patient beds in addition to its nationally recognized trauma and burn centers.

During the board of supervisors meeting on June 24, my fellow supervisors and I voted to place a measure on the November ballot to ask voters to approve $840 million in bonds to not only complete VMC’s seismic retrofitting, but also to improve medical facilities in downtown San Jose. The downtown area lost much of its health services when San Jose Medical Center closed in 2004.

The county is already bracing for a tough budget next year. Revenues have declined this year, so county administrators are projecting an even worse deficit for the 2009-2010 fiscal year. I will continue fighting to preserve important county programs and services. Without them, the county can’t keep all of its residents healthy and safe.

As always, I encourage you to contact my office if you have any concerns. You can reach me at (408) 299-5040 or via e-mail at Ken.Yeager@bos.sccgov.org.