DATE:
October 11, 2022
16
TO:
Board of Supervisors
SUBJECT
Title
RECEIVE A PRESENTATION ON FISCAL YEAR 2022-23 ECONOMIC UPDATE (DISTRICTS: ALL)
Body
OVERVIEW
Average annual inflation in the San Diego region through July 2022 grew to an average of 7.9%.1 Soaring local and national inflation rates led the Board of Governors of the Federal Reserve System (Fed) to raise the federal funds rate, the overnight interest rate at which banks loan the Federal Reserve money. Inflation over the last year and resulting Fed monetary policy actions to control inflation have caused uncertainty in equity, fixed income, commodity, and housing markets, among others. Economists, business managers, families, and individuals across the country are grappling with what the financial future may hold. San Diegans have questions about how these macroeconomic decisions impact their checkbook.
With a current population of 3.3 million, the County of San Diego (County) is the second largest county in California and the fifth largest in the nation; in addition, its population is expected to continue to grow. San Diego's local economy is similar to the United States and State of California economies, and the County is impacted from cost drivers such as staffing, services, contracts, supplies and major County General Fund revenue sources such as General Purpose Revenue (GPR), sales tax, program revenue, and fees.
Today's recommended action is to receive, via presentation, the Fiscal Year 2022-23 Economic Update, which will provide greater insight into broad national and State economic issues as well as a regional update and forecast on the local economy, including County cost drivers and General Fund revenue sources.
RECOMMENDATION(S)
CHIEF ADMINISTRATIVE OFFICER
Receive the Fiscal Year 2022-23 Economic Update through presentation.
EQUITY IMPACT STATEMENT
As of August 2022, the County's unemployment rate was 3.4%. Even though the region is experiencing a relatively low unemployme...
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