Santa Cruz County voters gave a clear stamp of approval to raising the county’s spending limit on Tuesday, with Proposition 417 receiving 60.6 percent yes votes in unofficial results posted on the county website early Wednesday morning.

Passage of the proposition authorizes a permanent $1.5 million adjustment in the county’s base spending limit, which was established in 1980 as $2.3 million annually. The base is adjusted annually based on population increases and inflation. With the adjusted base limit in place, the county will be authorized to spend up to $50.2 million in its 2027-28 budget instead of $30.4 million if the measure had failed. The spending is not automatic — it is contingent on a corresponding increase in county revenues — and it will not impact tax rates. It will allow the county to spend money that is already coming in.

John Fanning, chairman of the Board of Supervisors, said he learned of the outcome while driving home Tuesday night. “I was incredibly excited,” Fanning said after Wednesday’s regular meeting of the Board in Nogales.

“I know one of the major detractors from this is what happened in the past with not only our county treasurer but also some other irregularities with funding,” he said. “So I knew we were working against that. To have a 60-40 proportion made me feel fantastic, knowing that we are making strides in gaining trust back from our constituents.”

“The real work starts now. That means actively involving our community in decisions ahead, listening to the ideas and concerns, setting priorities on how we use public dollars responsibly and keeping you informed on where the money goes and what we accomplish.”

John Fanning

In pitching the increase to voters, deputy county manager and finance director Mauricio Chavez said county revenues were increasing about 6 percent annually, outpacing the spending limit formula’s increase of 3.5 percent. Increasing the limit, he said, would enable much needed expansion of county services while also keeping up with rising expenses, which are also increasing at a higher rate than 3.5 percent.

“Of course we are pleased with the outcome, that the residents of Santa Cruz County acknowledge the importance of the proposition and what it stands for and the opportunities that we’re going to have moving forward,” Chavez said.

Supervisors Rudy Molera and Luis Carlos Davis joined Fanning and Chavez in thanking the voters. “Now it’s time to work even harder to show we have the community’s best interests at heart,” Davis said.

The increased spending limit will take effect with the 2027-28 budget, but Chavez cautioned that there won’t be an initial spending surge. First, the revenues must accumulate. In the meantime, Fanning said the county will determine the best way to involve constituents in setting priorities.

“The real work starts now,” he said. “That means actively involving our community in decisions ahead, listening to the ideas and concerns, setting priorities on how we use public dollars responsibly and keeping you informed on where the money goes and what we accomplish.”