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San Mateo County Executive Mike Callagy on Thursday released a proposed $5.2 billion budget for fiscal year 2026-27 aimed at maintaining core county services while preparing for potential state and federal funding challenges, county officials said.
The recommended budget assumes the restoration of more than $157 million in withheld Vehicle License Fee replacement funding from the state of California.
County officials said the proposal also includes contingency reserves to help offset the loss temporarily if the funding is not restored.
“This budget reflects our best assessment of current conditions while recognizing that we are in a period of extraordinary uncertainty,” Callagy said.
The proposal would add 15 positions focused on health care access, public safety, survivor services, and emergency coordination, a press release issued Thursday noted.
Planned additions include expanded dental staffing at the North County Wellness Center in South San Francisco and staffing for a new Family Justice Center serving survivors of domestic violence, elder abuse, and sexual assault.
The budget also addresses anticipated impacts from federal changes to Medi-Cal and CalFresh eligibility requirements.
County officials said about 59,000 Medi-Cal recipients and 33,000 CalFresh participants in San Mateo County could be affected.
In housing, four affordable housing developments are expected to begin construction during the fiscal year, adding 306 homes, county officials said.
The county also plans to award more than $29 million through its Affordable Housing Fund and invest $15 million in behavioral health housing services.
County officials said the budget is designed to preserve essential services while preparing for continued financial uncertainty.
