San Diego — Acting Chair Terra Lawson-Remer praised the County draft budget released by the CAO Ebony Shelton on Thursday for eliminating waste and closing an initial shortfall of $138 million through efficiency and belt-tightening. But she issued a clear warning: without reforming the County’s reserve policy, the proposed budget still leaves vulnerable families exposed to devastating service cuts — just as a Trump-led recession and federal safety net rollbacks loom.

“The CAO draft budget reflects important belt-tightening, but no amount of efficiency can shield the community from what’s coming from Washington unless the County’s reserve policy is reformed and a revenue measure is explored,” said Lawson-Remer. “Without structural changes, San Diegans will face service shortfalls from federal budget cuts and the oncoming Trump recession.”

Efficiencies Identified in the Draft Budget

To reduce costs without compromising care, the proposed budget includes several major efficiency measures:

• Space Consolidation: Office closures and lease reductions expected to save over $2 million annually
• Contract Reductions: Dozens of outdated, duplicative, or underused contracts cut — including discretionary trainings and inactive programs
• Department Restructuring: HHSA has consolidated overlapping teams and realigned internal functions to reduce duplication and boost impact
• Audit and Oversight: Nearly 60 program audits conducted this year to identify waste, ensure accountability, and drive improvements

These cost-saving measures reflect sound fiscal management — but even with these efficiencies, the proposed budget balancing still closes the gap by reducing access to vital services for hundreds of thousands of San Diegans.

The largest proposed reductions fall on the County’s self-sufficiency teams who process applications for CalFresh, Medi-Cal, CalWORKs, County Medical Services, and General Relief. These programs serve more than 1 million San Diegans, including over 400,000 CalFresh and nearly 900,000 Medi-Cal recipients.

Since 2021, Lawson-Remer has led efforts to modernize these programs — streamlining access, increasing staffing, and cutting wait times. Today, San Diego families receive help far faster than the state requires: CalFresh applications are processed in 18 days instead of the 30 required by the state, Medi-Cal in 23 days instead of 45, and CalWORKs in 17 days instead of 45. That means groceries in the fridge sooner, doctor visits without weeks of delay, and emergency support before a crisis deepens.

But those gains are now at risk. The proposed staffing cuts could double or triple wait times — forcing parents to wait weeks for groceries or delaying medical care when someone’s sick — just as more San Diegans are expected to seek help in the face of a Trump-led recession.

Additional CAO-Proposed Reductions Include:

• Elimination of County-funding for the Youth Opportunity Pass, putting no-cost transit for students in jeopardy.
• Veteran housing assistance cuts, delaying placements for those using VASH vouchers
• Ending innovative high-impact, low-cost homelessness prevention programs that keep vulnerable people off the streets, including low-income seniors and members of the LGBTQ community

With federal signals pointing toward deep cuts to Medicaid, food assistance, and local aid, Lawson-Remer called for urgent local action.

“The Trump recession hasn’t fully landed — but it is coming,” she said. “The County must act now to protect essential services.”

Lawson-Remer and Montgomery Steppe will introduce a proposal to reform the County’s reserves next week aiming to ensure San Diego can maintain core services when federal support disappears and local need surges.

Building on the State of the County Commitments

Just weeks ago, in her 2025 State of the County Address, Supervisor Lawson-Remer warned that Washington is slashing support for the very programs that keep San Diegans safe — from healthcare and housing to public health and environmental protection. She emphasized that when Washington steps back, the County must step up.

The proposed County budget is a sobering reminder that these threats are real — and failing to act locally will have real consequences for working families, veterans, and vulnerable residents. Despite the risks ahead, Lawson-Remer reaffirmed her commitment to bold local action — including reserve reform, sustainable revenue strategies, and expanded investment in services under threat.

“When Washington fails, local government must lead,” she said. “And here in San Diego County, that’s exactly what we’ll do.”