Santa Cruz County supervisors plan to discuss how to spend new sales tax revenue on Tuesday. (Marcello Hutchinson-Trujillo — Santa Cruz Local file)
Santa Cruz County Supervisors meeting
- 9 a.m. Tuesday, Sept. 24.
- Attend in person at 701 Ocean St., Room 525, Santa Cruz.
- Watch on Facebook, join on Zoom or call 669-900-6833, meeting ID 817 3220 2363.
- To comment ahead of the meeting, email [email protected] by 5 p.m. Monday, Sept. 23.
SANTA CRUZ >> Months after Santa Cruz County voters approved a sales tax hike in unincorporated county areas, a lawsuit has been settled and county staff now have access to money collected since July 1.
Santa Cruz County supervisors on Tuesday are expected to approve a spending plan for $7.5 million anticipated from the tax hike through June 2025.
County voters approved Measure K, a half-cent tax hike, in March. Its proceeds were in escrow as the county faced a lawsuit from Boulder Creek resident Bruce Holloway. Holloway contended that it was illegal to hold a countywide election on a tax levied only in unincorporated areas.
An amended complaint filed in May argued that Measure K money should not be spent on projects in cities, where the tax is not collected.
The settlement requires Measure K funds to be spent only on projects and services in the unincorporated county, said Santa Cruz County spokesperson Jason Hoppin. The county opted to take the agreement rather than spend more money fighting the suit, Hoppin said.
The restriction means “a lot more work for our staff” to ensure Measure K dollars aren’t going to projects or services within cities, he said.
Measure K is expected to raise about $7.5 million in the first 12 months, then raise about $10 million annually.
With money from the sales tax hike, county supervisors on Tuesday are expected to approve:
- $1 million for homelessness programs and services.
- $1 million for parks capital projects, like construction and renovation.
- $1 million for emergency road projects this winter.
- $200,000 for the county Housing Authority to provide rental security deposits.
- $400,000 for room and board expenses in residential psychiatric facilities.
- $400,000 for new affordable and supportive housing.
The spending would go towards projects and services within the unincorporated county, according to a staff report.
County staff recommended that the rest of the money raised by Measure K in its first year — $3.5 million — help restore the county’s General Fund contingency. The contingency can pay for unanticipated costs such as disaster response, according to a county staff report.
The General Fund contingency was nearly depleted in June after it was used to balance the county’s budget.
Jesse Kathan is a staff reporter for Santa Cruz Local through the California Local News Fellowship. They hold a master's degree in science communications from UC Santa Cruz.
