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PRESS RELEASE. From the San Mateo County Executive’s Office on May 23rd, 2025.
Redwood City – Wait and see.
That’s the take-away from the 2025-26 Recommended Budget released today by County Executive Mike Callagy.
The $4.9 billion budget is balanced and reflects the County’s commitment to protect services relied upon by San Mateo County’s 740,000 residents.
Yet the state’s projected $14 billion deficit and uncertainty surrounding federal funding leaves local officials bracing for challenging times ahead.
“In an environment marked by economic uncertainty and potentially significant policy shifts, we are preparing thoughtfully and ensuring we remain flexible,” Callagy said.
“While this budget reflects the realities of increased pressures both with respect to revenues and expenses, we are prepared to respond to circumstances as they change,” he said.
Callagy and local budget officials, for instance, are uneasy over the potential loss of $114 million annually from what’s known as the Vehicle License Fee Adjustment Amount, which helps fund public safety, health, housing and other vital local services. San Mateo County’s share of this state revenue is not included in the governor’s proposed budget.
The $4.9 billion Recommended Budget represents the first step in the County’s multi-phase budget process. The next step involves three days of public hearings starting June 23 before the Board of Supervisors.
As an arm of the state, and in accordance with California State law, the Board of Supervisors must adopt a Recommended Budget to ensure spending authority is in place by July 1.
If approved by the Board, the budget would undergo refinements until another round of budget hearings in September.
Callagy added he anticipates some changes to programs that serve thousands of the County’s most vulnerable residents: Medicaid, Supplemental Nutrition Assistance Program and Temporary Aid to Needy Families programs.
Even as budget officials await developments from Sacramento and Washington, D.C., Callagy said years of fiscal prudence have put the County in a position to make thoughtful decisions.
“We are prioritizing what the County is doing now, meeting the needs of today’s residents, while continuing to build toward the future,” he said. “This Recommended Budget strikes a careful balance: it addresses short-term issues head-on while keeping our eyes firmly on long-term impacts and opportunities.”
Author: mdrag
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