Watsonville Health Services Agency Director Bids Farewell: What It Means for Our Community

Less than three hours after Santa Cruz County unveiled its budget for the year, which includes the difficult decision to reduce health services by $8.98 million and lay off over 74 positions, Director Mónica Morales announced she would be leaving her post.

In her press release, Morales stated she is departing “to pursue opportunities elsewhere.”

Morales returned to Watsonville, her hometown, in 2021. During her tenure, she played a crucial role in saving Watsonville Community Hospital from bankruptcy. Moreover, she expanded mental health services by establishing the Children’s Crisis Stabilization Center and the Children and Youth Behavioral Health Consortium. She also initiated 24/7 mobile crisis response teams, ensuring immediate support for those in need.

Reflecting on her time, she said, “Returning to my hometown to improve health outcomes for all residents has been immensely rewarding. I’ve decided to pursue new opportunities to be closer to my family. I will always cherish my time here and the partnerships we built.”

The Health Services Agency is vital for the community, providing essential health needs, particularly for low-income and uninsured residents. County CEO Carlos Palacios noted Morales’s significant contributions, emphasizing her advocacy for health care improvements. “We will miss her greatly,” he added.

Her departure comes just as county officials prepare for budget hearings that will focus on challenging cuts to social services, largely influenced by federal policies. The county recently lost two public health grants worth $408,000, which had supported crucial health services positions. While they managed to retain some staff with alternative funding, future shifts may be more difficult.

County officials noted, “The speed and breadth at which federal funding is being threatened may make it challenging to adapt in the future.” Adding to the trouble, Santa Cruz County faces reduced federal grants aimed at wildfire risk reduction.

Changes to federal eligibility for programs like Medi-Cal could severely impact local residents. Approximately 90,000 people in the county depend on Medi-Cal, and about a third—many of whom are homeless—could lose their coverage.

As Morales’s last day approaches on June 3, the county will begin a national search for her replacement, with an acting director expected to be named soon.



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