San Mateo County Supervisors pass $5.2 billion spending plan, funding core county services remains untouched
San Mateo County, California – San Mateo County leaders have approved a new $5.2 billion spending plan, but the vote came with a clear warning: the County is budgeting for today while bracing for a future that may be much harder to predict.
The Board of Supervisors voted 5-0 on Tuesday to adopt the budget for the 2026-27 fiscal year. The plan keeps core County services in place, including health, housing and social support programs, while setting aside reserves in case expected state funding does not arrive.
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At the center of the concern is Vehicle License Fee replacement funding, a major source of money for the County’s General Fund. The budget assumes that California will fully restore the money currently being withheld. But because that funding makes up 18 percent of the General Fund, County officials are not treating the issue lightly. The approved budget includes contingency reserves meant to act as a temporary bridge if the money is not restored.
Board President Noelia Corzo said the County has to look ahead now, before pressure turns into crisis.
“I think this is the reality that we’re in,” Corzo said. “It’s important we prepare for a future where we have difficult decisions to make and really assess what are needs versus what are nice-to-haves.”
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County Executive Mike Callagy gave a similar warning, saying the loss of VLF funding would leave a large gap that could not be ignored.
“We’re going to have a dramatic amount of funding to make up,” Callagy said. “It is such an enormous amount.”
The uncertainty does not stop at Sacramento. The budget also accounts for possible federal policy changes tied to health care and nutrition assistance. County officials said about 59,000 Medi-Cal beneficiaries could face new eligibility and renewal requirements. CalFresh, which supports about 33,000 San Mateo County residents, is also expected to bring heavier workloads because of new work requirements and eligibility rules.
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Even with those concerns, the County is continuing to move forward on long-term needs. Affordable housing remains a major piece of the plan. Four affordable housing projects are expected to begin construction during the fiscal year, creating 306 homes. The Department of Housing also plans to award more than $29 million through the Affordable Housing Fund to help support future developments.
Behavioral health is another priority. County Health plans to invest $15 million through the Behavioral Health Services Act to expand housing and support services for people with behavioral health needs.
The approved budget reflects both caution and commitment. It keeps services running, protects money for vulnerable residents and prepares for a funding picture that may shift quickly. But County leaders made clear that if state and federal dollars fall short, difficult choices could follow.
