As budget clock ticks, still no plan B to Santa Cruz County’s proposed layoffs and health service cuts

With only a week until Santa Cruz County’s elected officials vote on how to fund the government, staff have still not publicly offered any alternative options to the proposed layoffs, service reductions and medical facility closures despite formal requests from local lawmakers. 

After the county’s outgoing health agency director, Mónica Morales, proposed budget cuts on April 29 that included about 12 layoffs, an overall staffing reduction of more than 74 positions, and the closure of key safety net programs, the board of supervisors unanimously requested alternatives to the Health Services Agency (HSA) proposal for when the budget came back for discussion in June. 

More than a month later, staff has not produced other options for the public and supervisors to consider. On Tuesday, Supervisor Manu Koenig (District 1) asked Morales how she would use an extra $5 million if the county could find it. Morales said she’d prioritize spending the money on strengthening remaining programs because she anticipates the county will face further cuts once the state and federal budgets are passed. She said the original proposal — so far the only presented option — is the best path forward. 

“I don’t think you’re going to get out of this, I really don’t,” Morales said. “I’ve looked at it every shape, way and form. What we’re trying to do is the least painful. You can definitely choose not to, and kind of postpone it, but it wouldn’t be wise of us. You will have to make really bold changes, unfortunately.” 

The county also learned this week that it will have yet another health and human services wrinkle to figure out by the final budget vote scheduled for June 10: The largest local health and human services nonprofit, Encompass Community Services, announced plans to close two of its residential mental health facilities — Casa Pacific in Watsonville (12-bed capacity) and Telos in Live Oak (10-bed capacity) because of a shortage in county funding. 

The comments from Morales on Tuesday echoed those she made on May 20 after the board asked for an update on alternatives to the proposed cuts. She told the supervisors that she and her staff had looked at some other options but declined to formally propose them. 

“You’re going to have additional considerations coming your way,” Morales said then. “So I still think, unfortunately, without additional money coming in, this is probably the best at this point.” 

Morales’ last day with the county was Tuesday. She announced her resignation last month. She is headed to Yolo County to take a similar role. 

Lookout requested comment from Morales on Tuesday but did not hear back. 

Max Olkowski-Laetz, chapter president of Service Employees International Union (SEIU) 521, the labor union representing the 12 employees who face layoffs, told Lookout that he recently sat down with Morales and county representatives as part of a negotiation — known as a “meet-and-confer” — regarding the layoffs proposed in the HSA budget. He said Morales and the county had no ready alternatives to the original proposal. 

“[Morales] was ordered to present an alternative at the meet-and-confer and she said she didn’t have one yet,” Olkowski-Laetz said Tuesday. “I don’t think they have any plan except to cut the union positions.” 

On Tuesday, the board of supervisors again unanimously voted to direct county staff to offer alternatives to the cuts proposed by Morales and the HSA before the budget’s final vote on June 10. This time, the supervisors got more specific, directing staff to work with the City of Santa Cruz to find ways to save the Mental Health Client Action Network — which Lookout wrote about last week — and a downtown outreach program focused on the unhoused, and to as bring back options to extend or save the county’s phlebotomy lab and radiology and psychiatric services that are on the chopping block. 

“I want to make sure we’ve explored all opportunities,” Supervisor Justin Cummings (D3) said. 

Koenig told Lookout on Tuesday that, even if the alternatives weren’t something the board would support, he would have liked to see some other options presented. 

“I think Mónica Morales has looked at it from all angles and the reason we’re getting back the same answer is because she doesn’t see a different solution,” Koenig said. 

The board is slated to take its final vote on the budget on June 10, and staff said it’s likely they will need to come back in the fall for more budget decisions to mitigate the expected shrinking of the social safety net proposed in the state and federal budgets.

Have something to say? Lookout welcomes letters to the editor, within our policies, from readers. Guidelines here.