Article Source:  County of San Mateo - CA

San Mateo County Supervisors to Receive Mid-Year Budget Update
February 7, 2025


Redwood City – The mid-year financial update for 2024-25 shows that San Mateo County has sufficient revenue to continue funding its vital health and social services, which remain central to the County’s mission. The update will be presented to the Board of Supervisors on Tuesday, Feb. 11.

Projections from property and sales taxes, combined with careful financial management, enable the County to face emerging challenges while maintaining essential services. The 2024-25 mid-year budget update highlights the County’s ability to navigate financial hurdles despite broader economic pressures.

In addition to funding critical services such as elections, public safety and parks, the budget includes support for four key areas prioritized by the Board of Supervisors:

Housing and Homelessness
Children, Families and Seniors
Emergency Preparedness
Equity

While the County continues to offer high-quality programs and services, it faces financial risks ahead. Local economic shifts, along with uncertainty around state and federal funding, create challenges for the future.

“San Mateo County has long been recognized for its excellent fiscal stewardship,” County Chief Executive Mike Callagy said. “Thanks to the Board’s commitment to conservative budgeting and transparency, the County has been able to navigate financial challenges while avoiding structural deficits. However, the County is not immune to the pressures of potential rising demand for services and uncertain funding streams to meet that demand.”

Local officials are actively seeking San Mateo County’s fair share of the Vehicle License Fee Adjustment Amount (VLF), a property tax that benefits 55 other counties but has left San Mateo County without adequate funding.

The rising cost of living and inflation are affecting vulnerable populations – the residents most likely to seek assistance from the County. Local leaders remain focused on ensuring these individuals have access to the support they need in these challenging times.

“The Board of Supervisors is committed to maintaining the safety net services that are so vital to the public health and safety of our residents,” Board President David Canepa said. “We know from the challenges of the past that being careful and sensible with our taxpayer dollars is the best approach we can take to brace for any economic uncertainties.”

Since the pandemic, the unemployment rate has remained predictably low but ticked up in the second half of 2024. Historically, higher rates of unemployment coincide with reduction in sales tax revenue and increased usage of County services, which increases County costs.

And while median income in San Mateo County has increased for each of the past three years, some groups are faring better than others. Black household median income has decreased 15 percent from 2021-2023, while Latino households have seen median income rise and fall.

Federal funding priorities remain in flux, creating uncertainty for local leaders and nonprofit organizations that depend on government grants to serve the community. On Jan. 16, 2025, the County hosted over 150 civic leaders, including elected officials, city managers and non-profit directors, for a summit addressing the impact of anticipated changes in policies at the federal level on residents of San Mateo County.

While the impact of any policy changes will not be known for some time, “The concerns raised at the summit reflect the diverse and pressing needs of the community and will guide the County’s planning and response efforts in the months and years ahead,” Callagy said.

Meeting agenda.

Mid-Year Budget Update

Media Contact
Michelle Durand
Chief Communications Officer
mdurand@smcgov.org