A proposed plan to dip into the county’s reserve fund in order to keep services from being cut will not move forward following a vote by the Board of Supervisors.
After a robust debate and public feedback, the board voted 2-1, with the two sponsors Terra Lawson-Remer and Monica Montgomery Steppe in support, Jim Desmond opposed, and Joel Anderson abstaining. It needed three votes to pass.
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.
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.
The board is short one member – a Democrat – following Nora Vargas’ sudden departure in January.” 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.
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.
On Tuesday, Anderson said the late notice gave him little time to inform his constituents.
Last week, the county 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.
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.
