County of Santa Cruz ARPA Recovery 

Plan – US Treasury Interim Report

Executive Summary

The adopted County of Santa Cruz Recovery Plan maintains consistency with the County Board of Supervisors’

priorities, The County’s Operational Plan, and the continued pandemic local emergency response. Based on U.S. 

Treasury interim final rules and subsequent guidance, the County is projecting to recover and replace $53,068,442 in 

aggregate revenues. The use of the replaced revenues has been allocated to assist the County in eliminating a 5 to 

10 percent staffing furlough at a cost of $18.9 million over three years, enacted in response to the economic crisis 

brought on by the pandemic, which limited the availability of government services to the public. Replaced revenues 

from ARPA also are planned to replenish $5.4 million in road maintenance and project funding costs as well as 

restore $5.2 million in operational resources at the County’s health clinic which stabilizes vital community health 

services. Lastly, the County’s plan provides $31.1 million in various uses of replacement funds to restore, stabilize, 

and expand a multitude of government services related to the County’s 2021-23 Operational Plan, ongoing 

pandemic local emergency response efforts (not FEMA eligible for reimbursement), and the County Board of 

Supervisors’ directed priorities. 

Use of Funds 

The economic devastation as a result of the COVID-19 pandemic decimated state and local government resources 

needed to maintain adequate public services. In response, the County of Santa Cruz enacted a staffing furlough of 5 

to 10 percent based on position classification, reduced contracted services, reduced supply expenses, and made 

other budgetary adjustments to match reduced revenues. Based on the U.S. Treasury’s prescribed methodology for 

calculating eligible levels of revenue losses, the County of Santa Cruz is projecting to recover and replace lost 

revenues equal to all its allotted $53,068,442 from ARPA-SLFRF. 

The intended uses of these replaced revenues extend across a wide range of government programs aimed at 

addressing some key functions: continued public health emergency response, restoration of availability of core 

government services, restoring deferred infrastructure investments, and economic recovery. Examples of 

government programs enabled by the replacement of lost revenues include:

• Farm worker outreach and education of vaccines and public health measures

• Minority and women work force development and business support, including childcare resources

• Community non-profit support

• Public health measures included PPE distribution, health clinic staffing, and continued expanded testing and 

contact tracing, and virtual health and recreation services

• Student distant learning resources

• Public safety measures including expanded testing, tracing and continued enhanced cleaning at various 

detention centers

In addition to the above uses of replaced lost revenues, the County has received roughly $16.1 million in emergency 

rental and housing assistance funds to help people negatively impacted by the pandemic. The County established an 
MOU with the State of California to have the State administer the rental and housing assistance program on behalf 

of the County. Below is a overview of the County of Santa Cruz ARPA Recovery Plan:

Revenue Losses and Revenue Replacement 

Calculation

Year CY 2020 CY 2021 

Projected Total

Total Revenue Replacement $ 42,864,801 $10,203,641 $ 53,068,442 

 Use of Replacement Funds: County of Santa Cruz ARPA Recovery Plan

Department FY 2020-21 

Actuals

FY 2021-22 

Adjusted Rec. Total 

Auditor Controller Treasurer Tax Collector $ 5,522 $ 2,800 $ 8,322 

Agricultural Commissioner $ 41,435 $ 7,664 $ 49,099 

County Administrative Office $ - $ 9,259,422 $ 9,259,422 

Department of Public Works $ - $ 2,413,274 $ 2,413,274 

General Services Department $ - $ 195,104 $ 195,104 

Health Services Agency $ - $ 6,358,403 $ 6,358,403 

Human Services Department $ 5,140,108 $ 3,070,054 $ 8,210,162 

Information Services Department $ - $ 155,400 $ 155,400 

Personnel Department $ 44,136 $ 1,881,475 $ 1,925,611 

Probation Department $ 79,807 $ 180,193 $ 260,000 

Parks Department $ 735,627 $ 776,609 $ 1,512,236 

Sheriff $ 98,085 $ 710,213 $ 808,298 

Total County of Santa Cruz ARPA 

Recovery Plan $ 6,144,720 $ 25,010,611 $ 31,155,331 

Use of Replacement Funds: County Wide Programs

Year FY2021-22 FY2022-23 FY 2023-24 Total 

General Fund Furlough Elimination $ 5,056,954 $ 6,321,192 $ 7,534,945 $ 18,913,091 

Road Repairs $ - $ 3,000,000 $ - $ 3,000,000 

Total County Wide Programs $ 5,056,954 $ 9,321,192 $ 7,534,945 $ 21,913,091 

Equitable Outcomes

The impact of COVID-19 is felt most strongly in south county, where structural inequities have resulted in the 

county’s Latinx population making up 57% of total known cases of the virus, but only 33% of the total county

population. The County of Santa Cruz ARPA Recovery Plan commits to programs that recognize the root causes of 

health inequities and can adapt to a post-COVID-19 world where social determinants of health are addressed, 

creating more resiliency within vulnerable communities, and thereby making our community more resilient.

Equity is built into the fabric of the County of Santa Cruz ARPA Recovery Plan as directed by the County’s Strategic 

Plan which calls out equitable government services as a core value of the County. Specifically, the efforts supported 

by recovered revenue losses related to workforce development, business support, public health operations, distant 

learning support, targeted farm worker outreach, and other are all focused on supporting women and minority 
communities within the County that have been disproportionally impacted by the economic devastation caused by 

COVID-19. The County of Santa Cruz ARPA Recovery Plan envisions investments that create equitable economic, 

health, education, and safety opportunities for the community. Equity is central to this framework, working towards 

a goal where outcomes are no longer predicted by characteristics such as race/ethnicity, zip code, gender, or sexual 

orientation (or others). This, in turn, means that ARPA supported efforts are designed address the policies and 

structures that yield persistently unequal outcomes by counterbalancing unequitable structures. 

Community Engagement

The Santa Cruz County ARPA Recovery Plan was developed in open public meetings of the County Board of 

Supervisors in April, May, June, and August 2021. Over the course of three publicly held meetings, The County 

crafted the plan with significant transparency and input from stakeholders and the public at large. 

Additionally, the County of Santa Cruz staff (at the direction of the County Board of Supervisors) is committed to 

bringing monthly updates to the Board at regularly scheduled meetings. These updates report on the progress of all 

ARPA supported efforts, detail any emerging issues, and give the public the opportunity to address the County with 

any concerns related to the use of replaced revenues. 

As outlined in the equity section above, the uses of replaced revenues are designed to help address 

disproportionate impacts felt by minority groups in the County. With the assistance of local community -based 

organizations who specialize in services to these groups and others, as well as intentional focus from County staff, 

these uses are built to lower barriers to access and participation by low-income, minority, and elderly communities. 

Labor Practices

A substantial amount of the County’s ARPA-SLFRF revenue replacement is used to eliminate a 5 to 10 percent 

staffing furlough effective July 1, 2021, which restores necessary government services levels to address community 

needs. By adopted county policy, the County follows prevailing wage rules in all its contracted services. 

Table of Expenses

Category Cumulative 

expenditures to 

date ($)

Amount spent 

since last 

Recovery Plan

6 Expenditure Category: Revenue Replacement

6.1 Provision of Government Services $6,144,720 $6,144,720