San Mateo County adopts a revised $4.4 billion budget

The county’s now $4.4 billion budget for fiscal year 2023-24 includes $97.4 million of Measure K funds and $283.2 million in community service funds, all of which are dollars already dedicated to initiatives but not yet allocated. An additional $98.7 million came from the Mental Health Services Act, Justice Assistance Grant to expand community wellness and a large adjustment to the electronic health record.

Some of those initiatives are expected to be completed this fiscal year including improvements to East Palo Alto City Hall, final touches to the county’s new Navigation Center and the County Office Building 3 project. The budget also includes funding for top board priorities — housing and homelessness, emergency preparedness, and family and children, Chief Financial Officer Roberto Manchia said.

“We aim to proactively focus on long-term planning, innovation and strategies aimed at addressing future challenges and opportunities,” Manchia said, adding that the county expects expenditures to surpass revenue beginning the 2025-26 fiscal year.

Also included in the budget are 37 new staffing positions, a third of which were extra-help employees who were offered full-time roles, which were offset by a reduction of 27 positions in the Probation Department, Callagy noted.

Supervisors David Canepa and Warren Slocum expressed concerns about the growing number of county staff given the potential for an economic downturn. Callagy assured the board each new position was carefully scrutinized for whether it would be a substantial benefit to add, noting department heads requested hundreds of new staff and were denied.

Additional questions were raised by Supervisor Noelia Corzo about spending on domestic violence initiatives, the county’s mental health response team and police oversight to which Callagy said his team would find the funding if directed to do so but other priorities may need to be put off.

Supervisors voted unanimously to adopt the updated budget as proposed, which Supervisor Ray Mueller noted contained significant dollars to support improvements in his district along the coast. His comments, including promises that he is working on improving housing in the area daily, were made in response to pleas from struggling Pescadero residents asking for greater county support.

“It’s really heart-wrenching to hear what they go through and we shouldn’t let this happen,” Rita Mancera, executive director of the Pescadero nonprofit Puente de la Costa Sur, said. “Puente and the county have worked together for 25 years and we’ve worked really well, so what I want to ask you today is that you continue work with us and our community and we together can figure out ways to increase affordable housing in our community.”

Millions in county funds will go toward the Pescadero Fire Station Project, the Pescadero Creek County Park Bridge Project and an alternate water resource system. But one coastside resident, Carlysle Ann Young, argued the budget neglects the area by not including funding for a new community center, senior center or emergency center.

The budget does include funding for a coastside response coordinator under the Department of Emergency Management and other systemwide improvements. Canepa issued a press release after the meeting highlighting a $1 million contribution the county is making toward preparing Cow Palace, an event center in Canepa’s district, for disasters.

“The Cow Palace has proven invaluable during emergencies, especially during the CZU wildfire when it became a Noah’s Ark for county residents scrambling to find shelter for horses, cows, goats and even llamas,” Canepa said in the press release. “With this $1 million, the Cow Palace will now be equipped to serve thousands of meals a day and keep the lights on with new emergency generators during power outages. This is another investment in emergency preparedness that highlights the county’s continuing commitment to public safety.”