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San Diego supervisors reject proposal to reform reserve policy to unlock funds for potential federal cuts

3202805 · May 6, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

The Board of Supervisors voted down a proposal to revise the county's reserve policy so funds could be unlocked under defined safeguards to respond to potential federal and state budget cuts. Supporters said the change would follow national best practices; opponents said it risked using one‑time money for ongoing needs.

The San Diego County Board of Supervisors on Tuesday rejected a proposal to change the county's reserve policy that would have made it easier to spend portions of the county's rainy‑day funds if federal or state funding were cut or a recession struck.

Supervisor Monica Montgomery Stepp, who co‑authored the measure with Vice Chair Lawson Reimer, moved the item after describing recent federal budget proposals and local public‑health funding reductions. "This policy does not raid anything," Montgomery Stepp said during debate, framing the change as an alignment with Government Finance Officers Association guidance and as a precautionary, countercyclical tool.

Supporters said the policy would update county accounting and create a guarded mechanism to tap reserves for urgent short‑term needs. The proposed revision would base reserve targets on recurring operating expenditures (excluding…

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