San Luis Obispo County’s slow-growing revenue hasn’t kept up with its expenses in the face of inflation and looming state and federal funding cuts, leaving local health services to bear the brunt of a proposed budget slash.
Second District Supervisor Bruce Gibson, who oversaw his 19th county budget proposal on May 20, said such a suggested reduction is unprecedented.
“The cuts are falling hugely on our health and human services,” he said at the Board of Supervisors meeting. “And that concerns me because this board has set some priorities that speak directly to health and human services: the addressing of homelessness, the provision of mental health and substance use disorder treatments.”
The county must balance a $38 million deficit in revenues for the 2025-26 fiscal year. Financial turbulence at the state and federal levels could further impact the county’s $1 billion recommended 2025-26 general fund budget.
To close the budget gap, the county Administrative Office asked each department to submit a 15 percent reductions list focusing on discretionary services or activities. The county reviewed all of its programs across the departments and decided where cuts should be made. County Administrative Officer Matt Pontes said staff put in “hundreds of hours” over eight months to balance the budget.
Public comments and correspondence flooded the May 20 meeting, urging supervisors to retain funding for groups like Transitions-Mental Health Association’s Growing Grounds program, Martha’s Place Children’s Center, the Court Appointed Special Advocates of SLO County, and the Paso Robles Family Planning Clinic.
“[The clinic] provides essential, life-saving services to thousands of individuals who otherwise have nowhere else to go,” said a letter to the supervisors as part of a petition organized by county resident Monica Schechter. “From breast and cervical cancer screenings to STI testing and treatment, from HIV prevention (PrEP) to access to birth control and health education, the clinic meets critical public health needs. It is the only provider of its kind north of the Cuesta Grade, and all of its clinical staff are bilingual—removing barriers for many in our rural and migrant communities.”
Schechter’s petition supporting the Paso Robles clinic garnered 398 signatures as of May 20. According to the budget, closing the clinic would be a consequence of eliminating the reproductive health program. Six full-time employees would lose their jobs, saving the county $846,016. Shuttering the clinic would also save $63,885 in temporary help and $296,970 in services and supplies and include a revenue loss of $732,800.
If the clinic closes, SLO County Health Agency Director Nick Drew hopes Community Health Centers (CHC) of the Central Coast will agree to take on the responsibility for the 1,300 patients who visit the Paso Robles facility annually.
“The CHC has had interest over the years to pick that one up, and for various reasons we haven’t moved in that direction. However, this is a good time,” Drews said at the meeting. “They have not provided some of the services that we currently provide in part because we were providing them. … We plan to give them a tour of the facility.”
Similarly, the county is also working with the Health Agency on an alternative plan to Martha’s Place. The budget proposal recommends removing the program to save $743,692 in general funds and $813,576 in expenses.
The center assesses and provides therapy for infants and children between 0 to 5 years old who exhibit developmental delays and experience prenatal substance exposure. Behavioral Health spokesperson Caroline Schmidt told New Times that last year 183 children were referred to Martha’s Place.
Supervisor Gibson stressed that Martha’s Place “has to stay.”
A public hearing on the budget proposal will take place on June 9.
“While no final decisions have been made, we expect changes to begin on July 1, 2025, pending the Board of Supervisors’ approval,” Health Agency spokesperson Tom Cuddy told New Times. “All current services will continue through June 30, 2025, and we encourage the community to utilize these services during this period.” Δ
This article appears in Summer Guide 2025.