Hundreds of county workers, immigrant-rights advocates, and labor unions filled the Santa Barbara County Administration Building Tuesday morning, urging supervisors to stop two controversial proposals that could reshape the county’s health-care and social-service systems.
At issue are two separate, but closely connected items: a Public Health Department plan to disenroll thousands of undocumented patients from county clinics, and a Department of Social Services restructuring plan that could eliminate more than 100 positions.
After hours of testimony, the Board of Supervisors voted to postpone both decisions, citing the need for more information and community input.
County Public Health Director Dr. Mouhanad Hammami told supervisors that the department faces a major funding shortfall after federal rule changes reclassified Federally Qualified Health Centers (FQHCs) as providers of “federal public benefits.”
That reclassification means local health centers can no longer bill for care provided to patients with what the federal government calls “unsatisfactory immigration status.”
“We are losing revenue because we’re no longer able to bill for services for 7,500 patients, that’s a $5.2 million deficit this year and $8.2 million next year,” Hammami said .
Hammami also noted said the county’s plan was designed to comply with federal regulations while keeping patients connected to care through new providers. Hammami described the process as a “warm hand-off” rather than an abandonment of patients.
“These patients cannot receive a call on Friday as a new provider on Monday,” he said. “Cases like these require at least three months to transition care, and we are obligated to stay with them.”
But community organizations called the proposal premature and harmful, noting that the federal rule is currently blocked by a court injunction.
Primitiva Hernández, Executive Director of 805 Undocufund, said advocates felt blindsided by the department’s presentation.
“We only learned about this the same way as everyone else, through that article,” Hernández said. “If it hadn’t been for that, this would have passed without us even knowing it. That’s the concern, the lack of transparency.”
Vanessa Teran, Policy Director for the Mixteco/Indígena Community Organizing Project (MICOP), said many of the families their organization serves are frightened and confused.
“There’s a lot of fear in our community about what these changes mean,” Teran said. “We don’t think this is just or right. It would be a betrayal to our immigrant community.”
Hammami maintained that no one will lose medical coverage under the plan. He said California continues to provide Medi-Cal coverage for all income-eligible residents regardless of immigration status, but federal law restricts where that coverage can be used.
After a lengthy discussion, supervisors voted to delay any action on the Public Health item, agreeing to review the proposal and hear more from stakeholdersin the coming weeks.
Attention then shifted to the Department of Social Services, where officials warned of a $9.7 million budget shortfall.
The department’s restructuring plan proposed eliminating more than 100 positions to balance next year’s budget, a move unions said would devastate both employees and residents who rely on county programs.
Laura Robinson, Executive Director of SEIU Local 620, said her members provide vital services to children, seniors, and vulnerable adults.
“The impact is not just to the employees, it’s to the community,” Robinson said. “These people provide the services that keep children in their homes and the elderly fed.”
Carson Acosta, Regional Director for SEIU Local 721, urged supervisors to reject the layoffs altogether.
“We’re asking the board to support a zero-layoff budget,” Acosta said. “We understand there are shortfalls, but this is premature.”
Following several hours of testimony, supervisors voted to bring the Social Services restructuring item back on November 18. Staff were directed to propose details for eliminating only vacant positions and using available funds to sustain other jobs through June 30, 2025.
With both departments facing mounting financial pressure, community members say they want a seat at the table before decisions are made that could affect thousands of residents and hundreds of county employees.
No final votes were taken Tuesday. The Board is expected to revisit both items later this fall.
