$5.2 billion recommended budget keeps San Mateo County focused on core services
San Mateo County, California – San Mateo County is preparing for the next fiscal year with a $5.2 billion Recommended Budget that seeks to protect daily services while officials watch closely for decisions from Sacramento and Washington that could reshape local funding.
County Executive Mike Callagy released the proposed Fiscal Year 2026-27 spending plan Thursday, placing it against a backdrop of financial pressure tied to state-held funds and expected federal changes to health and food assistance programs. At the center of the plan is more than $157 million in Vehicle License Fee replacement funding that the county expects the State of California to restore.
That money is not a small piece of the picture. It represents nearly one-fifth of the County’s General Fund. Because of that, the recommended budget also includes contingency reserves that could serve as a one-time bridge if the state does not return the funding.
“This budget reflects our best assessment of current conditions while recognizing that we are in a period of extraordinary uncertainty,” Callagy said. “While the County remains fiscally stable, this environment requires a disciplined and thoughtful approach to sustain services and meet the needs of our residents.”
Even with that uncertainty, the proposal keeps several long-term priorities moving. One major effort is the continued rollout of the county’s electronic health record system across San Mateo Medical Center and its neighborhood clinics, a project aimed at supporting health care services now and in the years ahead.
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The budget also proposes 15 new positions focused on health access, public safety, survivor services and emergency coordination. Those additions include expanded dental staffing at the North County Wellness Center in South San Francisco and staffing for the new Family Justice Center, which will provide legal, counseling and support services for survivors of domestic violence, elder abuse and sexual assault.
Other public safety positions would support work to combat human trafficking, strengthen forensic investigations and improve countywide emergency coordination during large-scale emergencies and disasters.
Federal policy changes are another concern. About 59,000 Medi-Cal beneficiaries in San Mateo County could be affected by new eligibility and renewal requirements, raising the risk that some residents may lose coverage. CalFresh, which serves about 33,000 residents, is also expected to face more administrative demands because of new work requirements and eligibility changes. In response, the Human Services Agency has set aside a one-time $12 million appropriation for CalFresh.
Housing remains another major focus. Four affordable housing developments are expected to begin construction in Fiscal Year 2026-27, adding 306 new homes. The Department of Housing also plans to award more than $29 million through the Affordable Housing Fund, while County Health plans to invest $15 million through the Behavioral Health Services Act to expand and stabilize housing for people with behavioral health needs.
The Board of Supervisors will consider the Recommended Budget during a public hearing on June 9 at 500 County Center in Redwood City. Spanish interpretation will be available. Residents may also join by Zoom or submit comments to [email protected].
