San Diego County’s finances may be shaky for a few years, in part because of changes to revenue streams and federal policy, an official told the Board of Supervisors Wednesday.
“To put it bluntly, the picture is not rosy,” Chief Financial Officer Joan Bracci explained to the board, adding, “We do not have the funding to respond to all of the funding requests that we are seeing from groups and departments” for the next fiscal year.
She said the county is “seeing a one-time funding gap of $138.5 million, which grows to $321.8 million by fiscal year 2029-30.”
“Requests outpace the available resources for the foreseeable future,” Bracci said.
After a period of robust growth, “we are starting to see a slow down in sales tax revenue,” something being mirrored statewide, Bracci said.
Board Chairwoman Nora Vargas said it may be time for officials to review spending priorities and be prepared.
“I believe this is the time as my dad used to say, `Buckle up, and let’s get ready for the ride,”‘ Vargas said.
A projected $2 billion state budget shortfall also can trickle down to impact the county, she said.
“We need to look at this budget as one for the next four years, not a budget for a fiscal year,” Vargas said. “It’s important to think about it from a big-picture perspective.”
People are still recovering from the COVID-19 pandemic and hurting economically, she added, before posing a question. The county has created new initiatives in the past four years, she said, but “What do we stop doing that we shouldn’t be doing any more?”
“In the end, we are the safety net for so many people that otherwise would not get services if it wasn’t for us,” Vargas said, citing CalFresh food assistance as an example.
She suggested that county officials need to consider innovative methods, including better customer service. Board Vice Chair Terra Lawson-Remer said the county should review programs that started 15 or 20 years ago and now may be outdated.
Lawson-Remer credited the Federal Reserve for managing inflation rates without triggering a recession, as the economy still faces pandemic-related challenges such as supply chain disruptions.
When it comes to the role of government, “you can overheat, but you can also underheat,” she added.
In a statement issued after the board meeting, county officials said they are “looking for opportunities to continue to transform the organization so it remains structurally balanced while providing critical services to our communities to protect public health and safety, promote sustainability and support some of our most vulnerable residents.”
