San Diego County Supervisors Push for Reserve Policy Changes Amid Budget Deficit
San Diego County is grappling with a projected $138.5 million budget deficit, prompting Democratic Supervisors Terra Lawson-Remer and Monica Montgomery Steppe to propose changes to the county’s reserve policy. Their plan aims to unlock approximately $355 million to maintain essential county services amidst looming federal funding cuts.
The proposal, set for discussion at next month’s Board of Supervisors meeting, could face significant challenges due to a politically divided board. The outcome may hinge on the upcoming District 1 county supervisor race between Republican John McCann and Democrat Paloma Aguirre, who advocates for increased reserve spending. The new supervisor will be seated in late July, post the anticipated board vote.
As of June, the county’s reserve account stood at nearly $3 billion, but much of it is not readily accessible. Lawson-Remer and Montgomery Steppe are focusing on the nearly $692 million unassigned account—considered a "rainy-day fund"—and a nearly $635 million assigned fund. Current policies restrict access to about $1.1 billion, largely tied to housing and pension obligations.
Their proposal includes eliminating certain capital costs from calculations, reducing the required reserve to $945 million, and combining the unassigned and assigned accounts to create a more flexible fund. If successful, these changes could significantly bolster the county’s financial resources during fiscal emergencies.
Montgomery Steppe emphasized the urgency of the situation, stating that many residents face unmet critical needs. Lawson-Remer underscored the proposal’s alignment with best practices recommended by the Government Finance Officers Association. However, Republican supervisors are apprehensive about increasing county spending, arguing for a tighter budget approach.
As discussions proceed, labor unions and advocates continue to pressure for reserve policy reforms, reflecting a broader call for strategic investment in vital services as San Diego navigates its fiscal challenges.
Note: The image is for illustrative purposes only and is not the original image associated with the presented article. Due to copyright reasons, we are unable to use the original images. However, you can still enjoy the accurate and up-to-date content and information provided.
