(May 6, 2025) San Diego, CA — In a partisan vote, Republican members of the San Diego County Board of Supervisors blocked a proposal to modernize the County’s outdated reserve policy—leaving local communities vulnerable to looming federal cuts that threaten the foundation of services that hundreds of thousands of San Diegans rely on.

The Reserve Reform, introduced by Supervisors Terra Lawson-Remer and Monica Montgomery Steppe, would have aligned the County’s reserve policy with national best practices from the Government Finance Officers Association’s (GFOA), and ensured critical dollars could be mobilized during emergencies. The failed vote comes just days after the Trump administration released its federal budget proposal signaling a 22% cut to non-defense discretionary federal spending—triple the scale of the controversial cuts proposed in 2017.

“Today’s vote wasn’t just a procedural setback—it was a choice to tie our hands while Washington walks away from its responsibilities,” said Supervisor Terra Lawson-Remer. “We offered a commonsense solution to safeguard San Diego’s most vulnerable communities. Instead, our Republican colleagues chose polemics and posturing over preparedness.”

“We proposed a policy that protected core services while preserving long-term fiscal health,” said Supervisor Montgomery Steppe. “Unfortunately, the Board chose the status quo—despite the mounting threats to the people we serve.”

The Stakes: What San Diego County Could Lose

The Trump administration’s proposed FY 2026 budget would slash federal funding for everything from public health to housing:

• Housing & Homelessness: A 44% cut to HUD would put up to 12,000 households at risk of losing Section 8 vouchers across the region. The County alone could see 4,500 families pushed to the brink of homelessness.
• Affordable Housing Development: Federal funds that helped expand affordable housing production by 500% since 2021 could be gutted, stalling urgently needed construction.
• Clean Water: The EPA’s clean water fund faces a 54% cut, threatening projects like the $1B East County Advanced Water Purification Program, which is set to provide 30% of East County’s water supply.
• Public Health: Trump’s plan proposes a 44% cut to the CDC and deep reductions to mental health and addiction services that help thousands of San Diegans.
• Biomedical Research: San Diego could lose over 3,000 jobs and $1 billion in NIH funding, crippling one of our region’s most vital industries.

“This budget roadmap tells us, loud and clear, who Washington is willing to abandon: struggling families, seniors, veterans, people with disabilities,” said Lawson-Remer. “The Board’s job is to protect our residents from exactly this kind of disaster—but today, Republican Supervisors failed to rise to that responsibility.”

What the Reserve Reform Would Have Done

The blocked ordinance would not have authorized any new spending. It simply:

• Revised how the County calculates reserves—basing targets on ongoing expenses, not one-time capital projects, to better reflect real fiscal needs.
• Recognized both 'unassigned' and 'assigned' funds—providing flexibility to act in emergencies, while keeping full Board control.
• Added strict guardrails—limiting use to moments of economic crisis, such as federal cuts or recessions, and capping drawdown at 25% of available funds annually.

"We had the opportunity to equip San Diego County with the fiscal tools to meet this moment,” continued Supervisor Monica Montgomery Steppe. “Instead, we left outdated and overly restrictive rules in place, just when our communities need us the most. This was fiscal irresponsibility disguised as caution.”

Next Steps: The Fight Is Far From Over

Supervisor Lawson-Remer and Supervisor Montgomery Steppe will continue working with County staff and community partners to bring the proposal back in a future session, especially as federal budget negotiations progress and the threat to local funding becomes more immediate.

“This isn’t the end. It’s the beginning of a fight to protect the people of San Diego County,” said Lawson-Remer. “We have been here before. We pushed back in 2017—and we’ll do it again. We won’t let partisan games stop us from delivering for our communities.”