SAN DIEGO (CNS) - The San Diego County Board of Supervisors Tuesday voted 3-2 to change policies aimed at allowing the county to tap into its financial reserves to offset cuts coming from Washington, D.C.
The policy change will require a second reading before any formal approval, according to county rules.
The proposal, sponsored by Chair Terra Lawson-Remer and Vice Chair Monica Montgomery Steppe, has two updates to the county's reserve policy:
-- Modifying the reserve target calculation to two months of operating expenses only, reducing said target from $973 million to $945 million; and
-- Recognizing all locally controlled reserves, not just "unassigned" funds. Following a future presentation by Ebony Shelton, chief administrative officer, any proposal to spend the reserves will require approval by at least four supervisors.
Both of these changes, which the supervisors say follow best practices, would open up around $380 million in "flexible, board-controlled reserves that could help stabilize services in the face of federal or state cuts, or during an economic recession over the next four fiscal years," they said.
Lawson-Remer, Montgomery Steppe and Supervisor Paloma Aguirre on Tuesday voted in favor of the policy change, while their colleagues Joel Anderson and Jim Desmond were opposed.
In a statement after the vote, Lawson-Remer described the reform as a "bridge carrying San Diegans over the immediate crisis to ensure healthcare, food and public safety are there when people need them most, while we work toward long-term solutions to keep our community strong."
Desmond, however, in a statement described the 3-2 vote as a "reckless step backward for San Diego County."
"It's not really about the federal budget," Desmond said before the vote. "This is about a really big change in the fiscal discipline in our county."
During the meeting, Anderson praised Aguirre, Lawson-Remer and Montgomery Steppe for having their hearts in the right place, but said he couldn't support the reserves overhaul.
"I don't want to see anybody go without food," Anderson said, adding that the county might consider reviewing funding for other programs before using the reserves.
Aguirre said the county could not afford to let surplus reserves sit idle, while her district deals with Tijuana River sewage crisis.
Financial resources to solve that problem "must be on the table as we continue these discussions," Aguirre said.
Aguirre added that a program like Supplemental Nutrition Assistance Program is a powerful anti-poverty tool, and improves long-term outcomes for children in education and labor market.
Aguirre also said the county can't bury its head, hoping the crisis brought on by the federal government just disappears.
Several dozen people -- including county workers and community advocates -- spoke during public comment, with many being in favor of spending reserves to help vulnerable residents, including senior citizens, young people and those who are LGBTQ.
"If this board doesn't act, we will have more hungry children in classrooms, more uninsured residents showing up to the ER and more law enforcement officers forced to act as mental health professionals," an employee named James said.
He added the losses "will cost the county much more in the long term than what it would take to open the reserves and continue funding them."
Mary Davis, who also goes by the name "Oliver Twist," urged the board to be careful on county spending.
"You have spent far too much of our money subsidizing the city of San Diego," and on programs such as immigrant legal defense, she said. "Do not raid the reserves."
Lawson-Remer and Montgomery Steppe said earlier the proposal is to protect the county's citizens from the Trump Administration slashing health care and food assistance programs by using ample reserves.
The "One Big Beautiful Bill Act" is projected to cost the county more than $300 million each year in additional costs or loss revenue.
According to Lawson-Remer and Montgomery Steppe, nearly 400,000 San Diegans risk losing health care, and 100,000 could lose food assistance.
"We can't let San Diego be dragged into a fiscal storm by Washington," Lawson-Remer said.
This follows a nearly-identical proposal in April to unlock a significant portion of reserves, which failed, 2-1-1.
In a statement, Lawson-Remer said the previous 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."
However, the results of July's special election to fill the seat vacated by Nora Vargas has changed the calculus. Aguirre is also a Democrat on the ostensibly nonpartisan board.
At the time, Desmond was the sole no vote (Anderson abstained).
He described the outcome as "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.
The renewed proposal would set up guardrails for using the reserves, only allowing funds to be accessed in tough economic times and requiring an additional vote by the board.
Lawson-Remer and Montgomery Steppe say no more than 25% of the newly available reserves would be available in a single fiscal year.
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