San Mateo County approves $4.9 billion budget with caution amid uncertain state and federal funding
San Mateo County, California – The San Mateo County Board of Supervisors has officially adopted a $4.9 billion budget for the 2025–26 fiscal year. This budget will keep important services running while the county prepares for possible financing problems in the future. Earlier this week, the decision was made following a number of meetings at the County Center in Redwood City. These meetings brought together supervisors, department heads, and members of the community to talk about what was most important for the next year.
The budget plan’s goal is to keep going programs that people depend on, like health care, public safety, and initiatives to make housing more affordable. But county officials were eager to say that this year’s budget is a little more cautious than usual. San Mateo County relies on certain sources of income to pay for many of its services. Ongoing financial problems at the state and federal levels could harm these sources.
“These are not just numbers on a page, they represent our values, our priorities and the trust the public places in us,” said David Canepa, president of the Board of Supervisors.
“We’re navigating a time of increasing fiscal constraint, with contracting support from federal and state partners and mounting pressures from climate and economic change. Every dollar we spend must be justified and every position we add must be accountable to the people we serve.”
The supervisors are primarily concerned about California’s own financial struggles. State authorities recently came to a tentative agreement to overcome a projected $12 billion shortfall, but that plan relies heavily on borrowing and rearranging existing cash. Such maneuvers could leave counties like San Mateo vulnerable if state aid falls short or is delayed.
Changes at the federal level also affect the county’s fiscal projections. Changes in Washington’s policies might have an impact on important programs like Medicaid, which helps a lot of low-income individuals pay for health care, and housing assistance programs. If the federal government cuts back on spending or changes its objectives, the county may have to make tough decisions in the middle of the year.
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Also, rising costs remain a problem that won’t go away. Inflation keeps making products and services more expensive, and new labor agreements impose even more obligations. All of these things together make an already tight budget much tighter.
Supervisors know that there are still questions about the budget, so they plan to look at it again during a second round of hearings in September. By that time, county authorities hope to have more information about how much money Sacramento and Washington are willing to provide them. This will help them decide if they need to make more changes to maintain services funded and the budget balanced.
