Santa Cruz County staff will present a proposed budget on Tuesday ahead of a June 3 hearing, which includes significant cuts to local health services, particularly affecting mental health care.
Among the most notable reductions is the elimination of $590,000 in funding for the Mental Health Client Action Network (MHCAN) in Santa Cruz. This peer-run organization provides essential services for individuals with mental illnesses, including food, showers, and help with securing healthcare and jobs. Without this funding, MHCAN would be forced to shut down, according to Executive Director Tyler Starkman. Starkman emphasized that many of the center’s members would likely not seek help from other services, as they feel safe and understood at MHCAN.
“This place allowed me to be myself without fear of judgment or police involvement,” said Starkman, recalling his own experience as an unhoused UC Santa Cruz student who found support at MHCAN.
In addition to cuts affecting MHCAN, other proposals in the budget include:
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A reduction of 74 full-time health services positions, most of which are currently vacant. This could lead to layoffs of 12 full-time staff members, including those in mental health services and county health clinics.
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A $3 million cut to mental health services for uninsured individuals, including psychiatric hospitalization.
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A $330,000 reduction for Gemma House, a transitional facility for women exiting jail.
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A $180,000 reduction for the Downtown Outreach Worker team, which offers crisis support in downtown Santa Cruz.
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A $135,000 cut to syringe cleanup efforts managed by the Community Action Board and Downtown Streets Team.
County officials cite changes in state funding as a key reason for the budget shortfall. Specifically, the Cal AIM program, which helps fund mental health services, has shifted how counties receive financial support, restricting payments for certain services. Additionally, the state’s mental health fund, supported by a 1% tax on millionaires, is now generating less revenue due to changes in state priorities, including funding for affordable housing.
Federal cuts to Medicaid could also force further reductions in local services, officials warn.
In related news, Santa Cruz County Health Services Director Mónica Morales announced on April 25 that she will step down from her role on June 3. A national search will be conducted to find her successor.
A full breakdown of the proposed budget cuts is available online.
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