A proposed plan to dip into the county’s reserve fund in order to keep services from being cut has been rejected by the Board of Supervisors.
After a robust debate and public feedback, the board voted 2-1-1, with the two sponsors Terra Lawson-Remer and Monica Montgomery Steppe in support, Jim Desmond opposed, and Joel Anderson abstaining.
Lawson-Remer and Montgomery Steppe introduced the proposal to “safeguard public health, housing and vital care systems,” citing looming state and federal budget cuts to multiple programs the county administers.
In a statement, Lawson-Remer said Tuesday’s vote “wasn’t just a procedural setback — it was a choice to tie our hands while Washington walks away from its responsibilities.”
“We offered a common-sense solution to safeguard San Diego’s most vulnerable communities,” she said. “Instead, our Republican colleagues chose polemics and posturing over preparedness.”
During the debate, Lawson-Remer said she “would be so happy if these cuts didn’t happen,” adding, “My job as an elected official isn’t to bank on wishes and prayers.”
In his own statement, Desmond said the outcome was “a win for taxpayers and fiscal responsibility.”
“I’m proud to have stood against the reckless attempt to raid our county’s emergency reserves — a move that would have put our families and communities at risk when disaster strikes,” he said.
Desmond on Tuesday said he didn’t agree with “the political scare tactics” in the proposal, noting that Congress is still debating the annual budget.
Montgomery Steppe said earlier the proposal didn’t involve abstract numbers.
“The threat of these cuts will have a devastating impact on our neighbors, our seniors, and our children,” Montgomery Steppe said. “We can’t control what’s happening in Washington, but we can ensure San Diego County is equipped to act with urgency, compassion, and responsibility when we are faced with the impact of those decisions.”
Before the vote, Montgomery Steppe stressed the need to be ready for possible federal cuts, including billions to the Medicaid program.
“I think we’d be crazy not to acknowledge that’s what’s going on, no matter what side we’re on, no matter what (political) party we identify with, these are facts and they’re right in front of our face,” she added.
During public comment, numerous county employees — many of whom are members of the Service Employees International Union, Local 221 — said the reserve proposal was important to ensure that not only residents were getting the best service available, but that workers also benefit.
“We are facing a critical moment,” one Public Works department employee said, contending that political division and economic instability are taking a toll on employees and residents.
“County workers are the backbone of this system,” he added. “Without us, these services stop.”
Opponents said the county’s fiscal stability was more important.
A woman calling herself “Oliver Twist” said she has been warning the county about the fiscal cliff it faces.
“You have continually subsidized things that are not in your purview,” she said, including an “illegal immigrant defense” program or bailing out the city of San Diego on projects like the Epicentre in Mira Mesa.
After the board voted, some in the gallery started chanting “SEIU.”
With the two Republicans on the officially nonpartisan body — Anderson and Desmond — already skeptical or outright hostile to the proposal, it was all but sure to fail.
Lawson-Remer pitched opening up the budgetary reserves during last month’s State of the County Address.
The board is short one member following Nora Vargas’ sudden resignation in December citing “personal safety and security reasons.” Imperial Beach Mayor Paloma Aguirre and Chula Vista Mayor John McCann will square off in a July runoff election to fill Vargas’ seat.
Lawson-Remer said the proposal to tap the reserve fund was intended to bring “local practices into alignment with the Government Finance Officers Association’s national best practices.”
San Diego County tries to keep its reserves at about two months of all spending — including large, nonrecurring capital costs. The supervisors presenting Tuesday’s proposal said that formula misrepresents how much is truly needed to keep the county in good financial health.
Ultimately, they asked their colleagues to reduce the amount needed in reserves from $973 million to $945 million for this fiscal year.
“Residents deserve to know the full extent of the resources we have to respond to crises that are becoming more alarming each day for us,” Montgomery Steppe said. “This policy gives both the board and the public that clarity.”
Desmond earlier said he was opposed to touching the county’s safety net, and had issues with new departments he claimed didn’t help the average resident.
“Two of my colleagues are pushing a proposal to dip into the county’s emergency reserves — unlocking nearly $380 million to fund more government spending,” Desmond wrote to supporters in an email.
“Rather than cutting wasteful spending, the county added 2,500 new government positions over the last few years and created costly new departments like the `Office of Sustainability and Environmental Justice’ and the `Office of Equity and Racial Justice,” he said. “These departments don’t pave roads, protect neighborhoods or lower your cost of living.”
Anderson said he was opposed to raiding reserves for “pet special interest projects” and called the proposal “last minute and reckless” in an op-ed for Times of San Diego.
“The late-docketed proposal from my colleagues threatens to weaken our financial safeguards by raiding the county’s reserves,” he wrote. “This approach would lead our county down a dangerous path of unsustainable spending while refusing to solve our fundamental budgetary issues.”
On Tuesday, Anderson said the late notice gave him little time to inform his constituents.
Last week, county Chief Administrative Officer Ebony Shelton released an $8.62 billion recommended budget for 2025-26, a 1% increase over the current year’s adopted budget.
The proposed budget, $85.8 million more than 2024-25, comes as the county faces uncertainty driven by the economy and actions out of Washington, D.C. Despite rising costs, the budget released Thursday is balanced and is “designed to protect core services for residents in the region and continues investments in issues important to San Diegans,” according to a county statement.
As it stands, the budget would cut 190 positions — a little less than 1% of the county’s employees. Not all of those positions are filled.
The proposal also included changing how the county defines reserves: Currently it only counts “unassigned” monies, whereas the change would include “assigned” funds, intended to give more flexibility to spend to meet needs.
It also sets up guardrails for using these excess reserves, only allowing funds to be accessed in tough economic times.
Lawson-Remer and Montgomery Steppe say no more than 25% of the newly- available reserves may be used in a single fiscal year.
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