Federal budget cuts lead this East Bay county to consider a new tax to fill the gaps
MARTINEZ — Bracing for a budget shortfall blamed largely on federal cuts, Contra Costa County voters could be asked to help mitigate any financial impacts with a ballot measure this June that would raise the county’s sales tax rate and generate about $150 million annually.
County officials are likely to place a 0.625% general retail sales and use tax measure on the June 2 ballot. If passed with a simple majority, it would raise the county’s current rate of 8.75%.
Supervisors voted unanimously to introduce the item during a meeting Tuesday and signaled their support for what they said is meant to be a stop gap to Trump administration budget cuts and an $18 billion state budget deficit estimated for the 2026-27 fiscal cycle.
“This is our way of trying to be proactive, but ultimately it will be the voters who decide,” Supervisor Candace Andersen said.
If approved, the new tax revenue would be used to help plug an estimated $307 million budget gap Contra Costa Health Director Dr. Grant Colfax warned during a January meeting the county could face in the near future due to a Republican passed budget bill, dubbed the “One Big Beautiful Bill Act.”
Officials said the new general fund revenue would not likely backfill all that the county stands to lose, but the money would be vital for preserving health care programming. Supervisor John Gioia noted about a third of county residents are on Medi-Cal, California’s version of Medicaid which was cut by nearly $1 trillion over a 10-year period.
“The reality is there are people who will be seeing significant gaps in services they potentially need if we are not able to figure out how to adjust the revenue for at least the next few years and until we get it stabilized,” Andersen said.
Support for the measure was offered by some, including union leaders, who warned residents, particularly seniors, are likely to struggle if a local solution to federal budget cuts isn’t adopted.
“I know these people, I’ve seen first hand what these cuts are already doing and what they will do in the future. So I want to say thank you to each and every one of you for having the courage to bring this to a vote, to put it on the ballot,” said Jim Donnelly, a former member of the county’s Advisory Council on Aging.
A handful of retired county residents said budget cuts should be implemented, not increased taxes.
“This sales tax, it’s not good. Bureaucracy is the problem. We need to find ways to cut the budget and look within to find a way we can cut spending, spending is out of control,” said Ron Paulmeyer, a sheet metal worker and union member.
Vice Chair Ken Carlson, who questioned how a union member could “throw all of our labor partners under the bus,” noted the tax measure was not the county’s “first line of offense.”
Board Chair Diane Burgis said county leadership has committed to finding “where we can cut and find the fat.”
The item will come back for a final vote on March 3, and will require support from at least four of the five members to be placed on the June 2 ballot. The measure is expected to cost about $1.2 million.
According to a staff report, because the tax would push some cities over a local sales tax cap of 9.25%, the county will need state legislators to pass a bill allowing the tax measure to take effect. El Cerrito and Pinole are currently the only cities with a sales tax over 10%, but Antioch, Concord, Martinez, Moraga, Orinda, Richmond, San Ramon and San Pablo would join them if the tax is approved.
Gioia said such a bill authored by State Assemblymember Buffy Wicks, D-Oakland, is moving through the legislature currently and could be approved by the summer.
Santa Clara County voters passed a similar proposal, Measure A, in November 2025. It’s expected to raise $330 million annually and also was prompted by the Republican bill.