SANTA CRUZ >> With the recent signing of the 2025-2026 state budget by Gov. Gavin Newsom, $4.5 million was allocated for the second phase of the downtown Santa Cruz library project, the city announced Wednesday. The state funding was secured through the efforts of Assemblymember Gail Pellerin and state Sen. John Laird.

“We are deeply grateful to Senator Laird for his continued leadership and advocacy on behalf of Santa Cruz,” said Santa Cruz City Manager Matt Huffaker in a statement. “This additional funding helps close the budget gap for Phase II of our Downtown Library project, ensuring improved services and spaces for the entire community.”

The new downtown branch of the Santa Cruz library will be housed in an eight-story mixed-use building with 124 housing units and a 240-space parking garage on the city-owned surface parking lot known as Lot 4 on Cedar and Lincoln streets, which was permanently closed Wednesday and will soon be fenced off, according to the city.

In addition to the $4.5 million in reappropriated funds from the State Library’s Building Forward grant program for the downtown library project, the final state budget includes $1.5 million for the implementation of the PRIME Central Coast program, which is a joint effort between UC Santa Cruz and UC Davis to train medical students that will serve in rural and underserved communities along the Central Coast.

“In a year when difficult decisions had to be made to close the state’s budget deficit, I’m proud we were able to preserve and prioritize funding that will have a lasting impact on education and healthcare access,” said Laird in a statement. “As the federal government pushes towards its goal of rolling back essential programs and undermining our democratic institutions, California will continue to reflect our values and our commitment to building stronger, healthier, and more informed communities. I’m especially proud of what this means for the Central Coast: expanded medical training for our rural communities and improved library infrastructure that will benefit future generations.”

Although the city announced in April that the groundbreaking of the library project would happen in June, construction of the new parking structure and mixed-use building was ultimately pushed back. According to city spokesperson Erika Smart, construction on the project could begin this month, with a groundbreaking event tentatively slated for mid-August.

“While construction was originally anticipated to begin in June, like many major construction projects, timelines can shift slightly as final preparations are made,” Smart said in an email. “Between the closure of Toadal Fitness and the relocation of the Downtown Farmers Market, our teams have been working diligently behind the scenes to ensure a smooth transition into the next phase of the project.”

The $4.5 million in funding will supplement tax dollars the city was allotted nearly a decade ago through the ballot initiative known as Measure S. Passed in 2016, Measure S earmarked $67 million to modernize, upgrade and repair local libraries in Santa Cruz County. Every branch of the Santa Cruz Public Libraries system has completed renovations or rebuilds using the Measure S funding, from Scotts Valley to Aptos, except for the Downtown Library Branch.

For information and updates, visit cityofsantacruz.com.