2011 Index of Silicon Valley - Silicon Valley Community Foundation

Trends in County Revenue and Expenditures
The economic downturn has created increased demand for vital safety net services, many of which are provided by county government.
The rising demand, combined with increasing expenses, has resulted in growing deficits in San Mateo and Santa Clara Counties and
resulting cuts of public programs and services at precisely the time these services are most needed.
County governments provide public services similar to those provided
by cities, but operate as agents of state government within
constitutional and statutory restrictions that limit their ability
to raise new revenues. This characterizes a major difference
between city and county governments. Because they administer
largely state-mandated health and human service programs, the
region’s counties are increasingly squeezed as revenues drop
while demand for services continues to rise.
County spending in Silicon Valley is outpacing revenues. Since
1998/99, expenditures have increased by 67 percent and revenues
by only 34 percent (Figure 2-9). Revenues have exceeded
expenditures in six of the past eleven years. During the economic
expansion beginning in the late 1990s, the region’s revenues
exceeded expenditures; however, this changed after 2002. In
fiscal year 2008/09, expenditures surpassed revenues by $62
million (Figure 2-10).
Figure 2-9
Growth Relative to Fiscal Year 1998/99
(100=1998/99 inflation-adjusted values)
Growth Relative to Fiscal Year 1998/99
170
160
150
140
130
120
110
100
90
Data Source: California State Controller’s Office
Analysis: Collaborative Economics
Revenue and Expenditures
San Mateo & Santa Clara Counties
1998/99 2008/09
Total Expenditures
+67%
Total Revenues
+34%
Figure 2-10
Total County Revenue and Expenditures
Santa Clara & San Mateo Counties
$4.0
3.5
Billions of Dollars (Inflation Adjusted)
3.0
2.5
2.0
1.5
1.0
0.5
0.0
1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09
Data Source: California State Controller’s Office
Analysis: Collaborative Economics
Total General County Revenues and Transfers In
Total General County Revenues and Transfers Out
63