Board approves $56.2 million in midyear adjustments and unlocks reserves amid debate over process
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Summary
After hours of public comment supporting housing, eviction‑prevention and environmental actions, the San Diego County Board bifurcated parts of a midyear package and approved one‑time allocations from unlocked reserves. Supervisors split over using reserves for programs versus saving for fiscal stability; recommendation 19 passed 3–2.
The San Diego County Board of Supervisors approved midyear budget adjustments March 3 that use unlocked reserves to fund housing, eviction‑prevention, senior nutrition, Tijuana River Valley response and other time‑critical items, following staff’s presentation of the county’s second‑quarter financial status.
County staff told the board the midyear projection shows a narrow $10.2 million general‑fund operating result and highlighted $56.2 million in proposed unlocked‑reserve expenditures across two recommendation groups. Staff said unlocked reserves are permitted under the county administrative code for (1) response to declines in federal funding, (2) recessionary environments, (3) time‑critical projects, and (4) replenishing minimum reserves.
The public record included extensive in‑person and telephone testimony. Karina Pugh of the San Diego LGBT Community Center said the package’s $3.2 million allocation to LGBTQIA+ housing is essential. "We are grateful that within this item, dollars 3,200,000 from the reserves has been allocated to sustain LGBTQIA+ adult housing," Pugh said, adding that housing programs are cost‑effective at preventing homelessness.
Supervisor Desmond registered procedural and fiscal concerns about spending one‑time reserves on what he described as ongoing programs. "I'm not a fan of spending reserves," Desmond said during debate, urging that items funded from reserves be limited to true one‑time needs or routed through the regular budget so recurring costs are sustainable.
Deputy Chief Financial Officer Amy Thompson told the board staff expects phased impacts from federal changes (referred to in the hearing as HR 1) and described how some programs previously funded with one‑time federal dollars have been reduced; she warned staff is planning for potential impacts to CalFresh and other public health grants.
After discussion the board bifurcated recommendation 19 so supervisors could vote separately on the larger package of proposed investments. The board first approved the remaining recommendations (excluding 19) and then voted on recommendation 19; that recommendation passed with Supervisors Anderson and Desmond recorded as voting no and the remaining supervisors voting aye.
The package includes $8.75 million focused on the Tijuana River Valley (including infrastructure and air purifier programs) and $47.4 million for time‑critical investments in housing, tenant legal services, senior nutrition, domestic violence shelters, habitat conservation compliance and infrastructure maintenance; staff said $25 million of unlocked reserves would remain available after the allocations. Staff will return with implementation details, contracts and required authority for program operationalization.
The board directed county staff to provide further detail on prioritization and to report back as programs are operationalized; several supervisors asked for clearer transparency about how ad hoc committee recommendations were developed.
