San Mateo County Board of Supervisors approve draft budget allocation of Measure K revenue

Heavy tariffs and a bumpy stock market, as well as threats of restricted federal funding support, has left San Mateo County to anticipate financial woes, demanding a slim down of its current spending of Measure K. Revenue for fiscal year 2025-26 was previously estimated to total $117 million, but has been adjusted downward to $114 million.

“Since the release of those estimates, political and economic factors have led to market instability, raising concerns about a potential economic downturn that would negatively impact the county’s revenue sources,” the staff report reads. 

The proposed budget allocations show $37,883,949 dedicated to children, family and seniors, $60,005,030 to housing and homelessness, and $5,035,627 to emergency preparedness. Remaining funds will be dedicated to Measure K staffing costs, district discretionary funds and other commitments. 

Proposed Measure K expenditures in 2025-26 show $81.8 million allotted for ongoing services and programs and nearly $31.5 million for identified priority areas. In addition to previously committed items, around $10.6 million will be allotted for child, family and senior services, around $17.6 million for housing and homelessness efforts, and around $3.1 million for emergency preparedness efforts. 

At a recent board retreat, supervisors discussed prioritizing funding allocations to health care, food security and housing to optimize the dollars available for essential services. 

“We are looking at really making sure there is meaningful and meaningfulness in regards to these things that are Measure K,” Manchia said.

Manchia also noted that following the 2008 recession, Measure K funds were also used to help fund mandates and services for residents in time of need. 

“During the recession, when people needed things most, it became difficult for the county to maneuver because it was also a time we did not have all the value of money we would normally have to move things forward,” Manchia said. 

Board President David Canepa said the proposed adjustments properly reflect the priorities outlined by the board. 

“We spent a lot of time at our retreat identifying the priorities, the challenges around [vehicle license fees], the uncertainty through federal and state government, but I think the plan before us today reflects the direction the board wanted to go,” Canepa said.

With ongoing funding developments and shifts in what the county will be able to offer community nonprofits and organizations, notices will be sent out to community-based organizations and nonprofits, Manchia said. 

Actual Measure K revenue is also expected to decrease by 5.5 million for fiscal year 2024-25 from 2023-24 because of economic pressures.

“Due to the current time, there may be some changes afoot in regards to how Measure K is distributed over the course of the next few years,” he said. 

The proposed budget for Measure K allocations was presented ahead of the general fund budget that will be voted upon by supervisors in June so detailed contract information can be included in the more detailed budget, Manchia said.