Chanting “no new taxes” in front of the Santa Clara County Government Center on Monday, a small coalition of residents spoke out against Measure A — a proposed five-eighths-of-a-cent sales tax increase to counteract the estimated billion dollars annually in lost federal revenue to the county.
Santa Clara County voters will decide on Nov. 4 whether to approve the general sales tax, which county officials say is critical to preserving access to health care and other services that largely rely on revenues from Medicaid. In July, Republicans in Congress cut one trillion dollars from the federally funded health insurance program over the next decade via the “Big, Beautiful Bill.” One in four residents in the county rely on Medicaid, known as Medi-Cal in California.
But the coalition, which is led by former Saratoga Councilmember Rishi Kumar, argues that taxes already are too high and that an increase to the sales tax rate would hurt seniors and families. The local sales tax rate is currently 9.125% countywide, and the 0.625% increase would put Campbell, Milpitas and San Jose at a 10% sales tax rate or higher. County officials, though, say the sales tax would sunset after five years.
Kumar, who is also running for county assessor this November, criticized the county for buying “private hospitals that were bleeding red” in recent years.
“We are no longer a county operation, we are a healthcare operation that is actually running a county,” Kumar said. “That’s not justified at all.”
Santa Clara County has the second-largest county-owned health care system in the state, operating four hospitals and 15 clinics. The county most recently purchased Regional Medical Center in East San Jose after its former owner, HCA Healthcare, announced it would close the hospital’s trauma center — a move that would have left much of the East Side without access to lifesaving care.
County Executive James Williams said in a statement that Santa Clara Valley Healthcare operates two of three trauma centers in the county and handles 80% of all trauma cases.
“Our hospital and health care system is under direct threat because of the federal government’s actions to cut funding for public hospitals and strip access to care for thousands of patients” he said. “County governments are charged with taking care of people, and our residents rely on the county’s system of emergency and specialized care, which saves lives and keeps our community healthy and safe.”
Instead of raising taxes, Kumar is calling on the county to audit its spending.
“We need to apply some of the corporate efficiency to Santa Clara County,” he said.
Dan Stegnik, the secretary for the No on Measure A campaign, said the proposed tax increase comes at a time when families are forced to choose between buying groceries or filling their car with gas.
He also is worried about how the money from the tax hike — estimated to be $330 million annually — will be spent. The Santa Clara County Board of Supervisors is expected to approve a spending plan for the revenue at a later date, though a large chunk is expected to go toward health care-related expenses.
“It’s a general tax, not a dedicated tax,” Stegnik said. “The money isn’t allocated to anything and can be used for any purpose including building buildings and even buying cars.”
Several current and former elected officials who were not in attendance at Monday’s press conference also signed onto the coalition to oppose the measure, including Cupertino Mayor Liang Chao, former Assemblymember Kansen Chu, former Palo Alto Mayor Lydia Kou, and former Monte Sereno mayors Liz Lawler and Rowena Turner.
Chao in a statement said that almost every current and former mayor in the county that she’s spoken with agrees that sales tax revenues are not the right way to fund local hospitals. The increase, she said, is also unfair to some communities — like those living in the El Camino Healthcare District — whose property taxes go in part to support the hospital.
“In just a decade, the county’s health spending has more than doubled, from $2.2 billion to over $6.1 billion,” she said. “By contrast, Los Angeles County — with five times the population — spends about $14 billion, far less per person. Until Santa Clara County provides a credible, sustainable plan, it is not right to ask residents to throw more money into a broken system.”
