DATE:
May 6, 2025
22
TO:
Board of Supervisors
SUBJECT
Title
REFORMING THE COUNTY RESERVE POLICY TO PROTECT CORE SERVICES AND VULNERABLE COMMUNITIES AND WAIVE BOARD POLICY A-72 (DISTRICTS: ALL) (DISTRICTS: ALL)
Body
OVERVIEW
The County of San Diego's (County) recently released CAO Recommended Operational Plan for Fiscal Year 2025-26, commonly referred to as the recommended budget, is balanced and demonstrates strong fiscal discipline and careful belt-tightening to manage projected funding deficits. County leadership has shown commendable responsibility in safeguarding taxpayer dollars and prioritizing essential local needs.
However, the County now faces escalating threats from proposed deep cuts to the federal budget-cuts that jeopardize the critical services which thousands of our residents rely on. The proposed reductions include $40 million lost from the Centers for Disease Control, nearly $880 billion in national Medicaid cuts, roughly a third of the County's Medicaid dollars, and significant threats to housing assistance that put local families, seniors, and veterans at risk. These aren't abstract numbers. The proposed cuts will impact our neighbors, children, parents, and seniors, who rely on the services the federal government now wants to walk away from.
The County must step in to fill the void the federal government leaves behind. We can't control what Congress does, but we can ensure our local government has the tools to protect our communities. That means planning responsibly, spending wisely, and updating outdated financial policies that don't reflect the needs or risks we face today.
It is time to update our County's reserve policy. Our current policy, last updated in 2017, is outdated and overly restrictive. It inflates reserve requirements by including one-time capital projects and ignores significant flexible funds already under local control, limiting our ability to respond to federal shortfalls.
Today, the County calculates eme...
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