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The Santa Cruz Business Beat is a monthly roundup of the most relevant local news stories, trends, and issues affecting Santa Cruz County. Each edition highlights topics important to business and community leaders, including education, workforce development, housing, transportation, climate, health, and local government updates. Our goal is to keep you informed, connected, and ahead of the curve on the issues shaping our community and economy. On The Move METRO Pursues 2028 Ballot Measure: The Santa Cruz METRO Board voted against placing a proposed half-cent sales tax measure on the November 2026 ballot, opting instead to support a citizen-led effort to qualify a similar measure for the March 2028 election. Board members cited the high cost of a special election, limited time to mount a successful campaign, and concerns that the measure lacked the voter support needed to pass. Transit officials continue to warn that without a dedicated local funding source by 2028, the agency could face significant service reductions, layoffs, and cuts to programs such as free youth transit. Learn more in this Santa Cruz Sentinel article. RTC Heads to Court on Property Dispute: A legal dispute over property rights in Aptos Village could affect plans for a future segment of the Coastal Rail Trail. The Santa Cruz County Regional Transportation Commission and two nearby property owners disagree over ownership of land currently used for parking near the Bayview Hotel and Trout Gulch Crossing. The case, which will determine whether the RTC has full ownership or a more limited property interest, is expected to be resolved in court. Learn more in this Lookout Santa Cruz article. Living Local UCSC Shares Updates on Student Housing: UC Santa Cruz currently provides housing for about 9,300 students, this is roughly half of its undergraduate population, and is one of the highest percentages within the UC system. The campus has been pursuing an ambitious plan to increase student housing by more than 40 percent. The plan has been a success with several projects scheduled to open in the 2026-27 academic year and more projects on the horizon. Specific achievements include: • UCSC recently announced it will provide a two-year guarantee of university housing for incoming first-year and transfer students, a reflection of the campus’s longstanding commitment to advancing student success. • UCSC celebrated the grand opening of their new off-campus housing project, the Delaware Apartments. Students and employees will begin move-in this Fall. The project contains 350 beds for upper division students and a separate housing complex providing 60 units to employees and their families. • Kresge College Renewal Project on the UCSC campus is near completion. Phase I is open and Phase II will finish this academic year, offering more than 900 bed spaces. • This academic year the new Family Student Housing project (with child care!) opens with 120 units for students with families near the base of campus. • The UCSC - Cabrillo “Costa Vista” shared housing project is coming along very quickly and looking great. This is slated to open in Fall 2027 and expected to provide housing for 240 UCSC students and 375 Cabrillo students. • Recently, UCSC received financing approval from the UC Board of Regents for their Heller South project, which will be located on the west side of campus. UCSC will begin the development of Phase I next year, with anticipated completion in the Fall 2029. Phase I is expected to provide 1,300 student beds. Eco Update Supervisors Shelve Battery Storage Ordinance: The Santa Cruz County Board of Supervisors voted to pause development of a local battery energy storage ordinance after the developer of a proposed Watsonville-area battery storage project chose to pursue state permitting instead of county approval. County leaders concluded that moving forward with the ordinance was no longer practical because the project could bypass local regulations, while some community members expressed disappointment over the loss of potential local oversight and others urged the county to revisit the issue if future projects arise. Learn more in this Lookout Santa Cruz article. Santa Cruz Invites Input on Coastal Resilience Efforts: The City of Santa Cruz is inviting residents to help shape its long-term approach to coastal resilience through a series of community workshops focused on key shoreline areas, including West Cliff, Main Beach, Cowell Beach, East Cliff, and Seabright Beach. Participants will take part in interactive discussions about potential adaptation strategies, evaluate the benefits and challenges of different approaches, and provide input to inform the City's 30-year shoreline planning efforts. Workshops will be held on August 3 at the London Nelson Community Center and August 8 at Bay View Elementary School. Light refreshments will be available, and advance registration is encouraged. Register to participate here. Health Watch Watsonville Hospital Appoints Interim CEO: Watsonville Community Hospital has named veteran healthcare executive Tim Moran as interim CEO following the departure of Stephen Gray. Moran, who has more than 30 years of leadership experience and previously served in the same interim role at the hospital, will lead the community-owned facility while its board conducts a search for a permanent CEO. His appointment comes as the hospital continues working to improve its financial stability, strengthen operations, and navigate ongoing challenges after recent financial losses and a cyberattack. Policy Pulse Santa Cruz Council Pauses Charter Amendments: The Santa Cruz City Council voted to pause its effort to place proposed City Charter amendments on the November ballot after community members raised concerns about several of the proposed changes. Rather than moving forward, council members directed staff to continue public outreach and revisit the amendments at a later date, allowing more time to evaluate potential revisions and build broader community consensus before asking voters to consider changes to the city's governing document. Learn more in this Santa Cruz Sentinel article. 2026 Primary Election Results: Santa Cruz County's final certified primary election results showed several closely watched local races taking shape ahead of the November election. Former County Supervisor Ryan Coonerty finished first in the Santa Cruz mayoral contest and advanced to a runoff with Ami Chen Mills, while incumbent Santa Cruz City Council members Scott Newsome and Renee Golder won reelection outright in their district races. In the District 4 County Supervisor race, Tony Nuñez secured enough support to avoid a runoff and win the seat outright. Countywide voter turnout reached about half of registered voters. Review the full election results on the County Clerk’s website. County Supervisors Approve $1.29 Billion Budget: Santa Cruz County supervisors have approved a $1.29 billion budget for the 2026-27 fiscal year that preserves essential public services while addressing mounting financial pressures. The spending plan closes a significant structural deficit by relying on one-time funds, allowing the county to avoid layoffs and continue investments in priorities such as public safety, health services, housing, infrastructure, and wildfire resilience. County leaders cautioned that the budget provides only a temporary solution, with difficult financial decisions likely in the coming years as costs continue to rise and outside funding remains uncertain. Learn more in this Santa Cruz Sentinel article.
The Santa Cruz Business Beat is a monthly roundup of the most relevant local news stories, trends, and issues affecting Santa Cruz County. Each edition highlights topics important to business and community leaders, including education, workforce development, housing, transportation, climate, health, and local government updates. Our goal is to keep you informed, connected, and ahead of the curve on the issues shaping our community and economy.
On The Move
METRO Pursues 2028 Ballot Measure: The Santa Cruz METRO Board voted against placing a proposed half-cent sales tax measure on the November 2026 ballot, opting instead to support a citizen-led effort to qualify a similar measure for the March 2028 election. Board members cited the high cost of a special election, limited time to mount a successful campaign, and concerns that the measure lacked the voter support needed to pass. Transit officials continue to warn that without a dedicated local funding source by 2028, the agency could face significant service reductions, layoffs, and cuts to programs such as free youth transit. Learn more in this Santa Cruz Sentinel article.
RTC Heads to Court on Property Dispute: A legal dispute over property rights in Aptos Village could affect plans for a future segment of the Coastal Rail Trail. The Santa Cruz County Regional Transportation Commission and two nearby property owners disagree over ownership of land currently used for parking near the Bayview Hotel and Trout Gulch Crossing. The case, which will determine whether the RTC has full ownership or a more limited property interest, is expected to be resolved in court. Learn more in this Lookout Santa Cruz article.
Living Local
UCSC Shares Updates on Student Housing: UC Santa Cruz currently provides housing for about 9,300 students, this is roughly half of its undergraduate population, and is one of the highest percentages within the UC system. The campus has been pursuing an ambitious plan to increase student housing by more than 40 percent. The plan has been a success with several projects scheduled to open in the 2026-27 academic year and more projects on the horizon. Specific achievements include:
• UCSC recently announced it will provide a two-year guarantee of university housing for incoming first-year and transfer students, a reflection of the campus’s longstanding commitment to advancing student success.
• UCSC celebrated the grand opening of their new off-campus housing project, the Delaware Apartments. Students and employees will begin move-in this Fall. The project contains 350 beds for upper division students and a separate housing complex providing 60 units to employees and their families.
• Kresge College Renewal Project on the UCSC campus is near completion. Phase I is open and Phase II will finish this academic year, offering more than 900 bed spaces.
• This academic year the new Family Student Housing project (with child care!) opens with 120 units for students with families near the base of campus.
• The UCSC - Cabrillo “Costa Vista” shared housing project is coming along very quickly and looking great. This is slated to open in Fall 2027 and expected to provide housing for 240 UCSC students and 375 Cabrillo students.
• Recently, UCSC received financing approval from the UC Board of Regents for their Heller South project, which will be located on the west side of campus. UCSC will begin the development of Phase I next year, with anticipated completion in the Fall 2029. Phase I is expected to provide 1,300 student beds.
Eco Update
Supervisors Shelve Battery Storage Ordinance: The Santa Cruz County Board of Supervisors voted to pause development of a local battery energy storage ordinance after the developer of a proposed Watsonville-area battery storage project chose to pursue state permitting instead of county approval. County leaders concluded that moving forward with the ordinance was no longer practical because the project could bypass local regulations, while some community members expressed disappointment over the loss of potential local oversight and others urged the county to revisit the issue if future projects arise. Learn more in this Lookout Santa Cruz article.
Santa Cruz Invites Input on Coastal Resilience Efforts: The City of Santa Cruz is inviting residents to help shape its long-term approach to coastal resilience through a series of community workshops focused on key shoreline areas, including West Cliff, Main Beach, Cowell Beach, East Cliff, and Seabright Beach. Participants will take part in interactive discussions about potential adaptation strategies, evaluate the benefits and challenges of different approaches, and provide input to inform the City's 30-year shoreline planning efforts. Workshops will be held on August 3 at the London Nelson Community Center and August 8 at Bay View Elementary School. Light refreshments will be available, and advance registration is encouraged. Register to participate here.
Health Watch
Watsonville Hospital Appoints Interim CEO: Watsonville Community Hospital has named veteran healthcare executive Tim Moran as interim CEO following the departure of Stephen Gray. Moran, who has more than 30 years of leadership experience and previously served in the same interim role at the hospital, will lead the community-owned facility while its board conducts a search for a permanent CEO. His appointment comes as the hospital continues working to improve its financial stability, strengthen operations, and navigate ongoing challenges after recent financial losses and a cyberattack.
Policy Pulse
Santa Cruz Council Pauses Charter Amendments: The Santa Cruz City Council voted to pause its effort to place proposed City Charter amendments on the November ballot after community members raised concerns about several of the proposed changes. Rather than moving forward, council members directed staff to continue public outreach and revisit the amendments at a later date, allowing more time to evaluate potential revisions and build broader community consensus before asking voters to consider changes to the city's governing document. Learn more in this Santa Cruz Sentinel article.
2026 Primary Election Results: Santa Cruz County's final certified primary election results showed several closely watched local races taking shape ahead of the November election. Former County Supervisor Ryan Coonerty finished first in the Santa Cruz mayoral contest and advanced to a runoff with Ami Chen Mills, while incumbent Santa Cruz City Council members Scott Newsome and Renee Golder won reelection outright in their district races. In the District 4 County Supervisor race, Tony Nuñez secured enough support to avoid a runoff and win the seat outright. Countywide voter turnout reached about half of registered voters. Review the full election results on the County Clerk’s website.
County Supervisors Approve $1.29 Billion Budget: Santa Cruz County supervisors have approved a $1.29 billion budget for the 2026-27 fiscal year that preserves essential public services while addressing mounting financial pressures. The spending plan closes a significant structural deficit by relying on one-time funds, allowing the county to avoid layoffs and continue investments in priorities such as public safety, health services, housing, infrastructure, and wildfire resilience. County leaders cautioned that the budget provides only a temporary solution, with difficult financial decisions likely in the coming years as costs continue to rise and outside funding remains uncertain. Learn more in this Santa Cruz Sentinel article.