Is Santa Barbara County poised to become the destination for cutting-edge technology?  

That was the discussion among local political and business leaders gathered at Santa Barbara’s Ritz-Carlton Bacara on Thursday for the 2026 State of the County Economic Summit hosted by the Santa Barbara South Coast Chamber of Commerce.

This year, speakers focused on the county’s growing technology sector, which has seen gains in quantum technology, artificial intelligence and aerospace development.

Melissa James, CEO of REACH, told the crowd that Santa Barbara County has become one of the top regions for attracting scientists, engineers and company founders.

“That, my friends, is the rarest asset an economy can have,” she said, “and this county has it in abundance.”

James explained that Santa Barbara County produces research at 6½ times the national average. That makes it one of the most research-dense areas in the country.

A lot of that is helped by UC Santa Barbara, a research powerhouse that is also home to eight Nobel laureates and has helped launch more than 60 local companies, James said.

“This is not a tourism economy with a university attached,” James said. “It is a technology economy with ocean views.”

Quantum computing, such as the work Google is doing in Goleta, and cutting-edge technological research underway today will help create technology to solve problems that modern computers cannot touch, she said. The result will be new medicine, new materials, new batteries and more.

There’s also the impact of Vandenberg Space Force Base near Lompoc, which is the busiest launch site in the country.

Despite the positive news, James said there is a difficult part to economic development here.

The median home in the county costs $1.36 million, and a household needs roughly $340,000 to buy it, according to James.

Furthermore, Santa Barbara County has the highest poverty rate out of California’s 58 counties.

James spoke about the need for the county and local leaders to work together to build housing for workers so they can remain in Santa Barbara.

She finished her speech by making three bets.

She predicted that by 2030, Santa Barbara County will be one of the country’s hubs for quantum technology, and that by 2030, Vandenberg will be the best place in America to build, process and launch a spacecraft. Her last bet was that by 2030, Santa Barbara County and neighboring counties will permit 10,000 new homes for workers.

UCSB Plans for Housing, Downtown Programs

Dennis Assanis, UCSB’s new chancellor, highlighted the university’s impact on the local economy and its efforts to address housing for students and staff.

UCSB generates $2.9 billion of economic activity for the region, according to a new report issued by the university. That makes up 8% to 9% of the county’s economic output.

The university contributes 19,000 jobs on and off campus and includes a faculty of 2,621, and that number grows every day, according to Assanis.

“What we’re most proud of is not just the sheer numbers, but it’s the fact that … we are the largest employer in the county,” he said.

Furthermore, Assanis said UCSB has been voted the best place to work in the county for 10 years in a row.

Assanis added that UCSB is one of the three leading universities working on new materials in addition to artificial intelligence. Furthermore, he highlighted the university’s growth in the area of biotechnology.

He added that the university is also doing its part for students and staff by investing $1.1 billion in new housing. Assanis said 2,000 new beds are expected to be completed by fall 2027, with an additional 1,600 in fall 2028.

More construction is in the works, and Assanis said the university already announced a two-year housing guarantee for students. He said the ultimate goal is to offer a four-year guarantee.

He also said UCSB is working to provide housing for staff.

Assanis added that by providing housing for students and staff, the university can help reduce rent costs for the community overall.

County’s Financial Outlook

Also speaking at the event was Jana Petersen, the new county executive officer. Petersen started the role in August, following longtime CEO Mona Miyasato.

Bob Nelson, chair of the Board of Supervisors and Fourth District supervisor, introduced Petersen, saying that in the short time he has worked with her, he has been impressed by her intelligence, work ethic and ability to get things done.

“We have tremendous potential here in Santa Barbara County, and I believe Jana has the tools to help us become that bright, shining example of good government that we all know we can be,” he said.

In her speech, Petersen explained the role of the county and the services it provides to residents.

She also explained the county’s financial position, telling the audience that it is currently operating on a reduced budget of $1.67 billion for the 2026-27 fiscal year.

Petersen noted that the current budget resulted from hard choices by the Board of Supervisors. The county is facing declining revenues and rising costs. Its budget is supported by federal and state funding and local taxes.

During the 2025-26 fiscal year, Santa Barbara continued to lead in revenue from its transient occupancy tax, or the hotel and vacation rental tax. The unincorporated parts of the county followed, then Goleta, Solvang and Buellton.

Santa Maria generated the most sales tax revenue for the year with $31.5 million. Santa Barbara led with $28 million, and the unincorporated county generated $16.7 million.

Petersen said Santa Barbara County is not the only county seeing its operating costs continue to grow.

“In fact, when I talk to my peers all across California and even across the whole country, we’re all facing the same pressure,” she said. “Our costs are growing faster than our revenues, and like businesses and residents, we’re paying more for insurance, utilities, supplies.”

Petersen said that because of the loss of federal funding, counties will be forced to make cuts to cover the costs. California counties face up to $9.5 billion in new costs.

The local impact for Santa Barbara County will be more than $11 million, according to Petersen.

Additionally, new changes to Medi-Cal and CalFresh will require more administrative work with less funding for the services.

On housing, Petersen shared a more positive message about the county’s efforts to meet state requirements.

“I’m pleased to report we are well on track,” Petersen said. “Since January 2023, the county already has approved 3,159 housing units, with 32% of those, or a little over 1,000, being … designated as affordable. Another 9,000 units are making their way through the application process.”

She also shared that the county has seen success in its efforts to address homelessness.

Petersen said the county’s strategy is to make homelessness rare and brief, with the ultimate goal of helping more residents exit homelessness than enter. She said the county is on track to reach that goal locally by 2031.

She also said the county has reached functional zero homelessness among its veteran population.

Petersen ended her speech by asking everyone in the room to join the county in working toward its goal of making “One County, One Future” a reality.  

“In Santa Barbara County, we do that by providing exceptional services so that all can enjoy a safe, healthy and prosperous life,” Petersen said. “That aspiration and that action orientation inspires me every single day. It’s why I’m here, and I hope it inspires you as well.”