The San Diego County Board of Supervisors today received its First Quarter Operational Plan Status Report, which outlines early fiscal trends for the year and identifies areas where departments must adjust spending or financial plans. Despite continued budget uncertainty at the federal level, most County business groups are pacing within budget and are on track to finish the fiscal year in good financial standing.

“Federal uncertainty forces local governments to be even more disciplined, and our teams are rising to that challenge,” said Board Chair Terra Lawson-Remer. “Departments are managing costs, maintaining services, and helping keep the County on solid footing despite the instability coming from Washington.”

Board Reviews Report Showing Most Departments on Track

Based on the first-quarter projections presented to the Board, nearly all General Fund business groups expect to end the fiscal year with positive operating positions: 

·        Health & Human Services Agency (HHSA): +$2.2 million

·        Land Use & Environment Group (LUEG): +$1.6 million

·        Finance & General Government Group (FGG): +$0.7 million

·        Finance Other: +$0.6 million 

Outside the General Fund, all other budgeted funds combined, including special revenue funds, special districts, internal service funds, and capital funds, are projected to close the year with a positive $11.9 million balance.

These projections demonstrate departments managing vacancies, pacing procurements, and aligning spending with actual service needs as the year progresses.

Sheriff’s Office Identified for Corrective Action

The Board also reviewed the projection for the Public Safety Group, the only General Fund business group anticipating a year-end deficit. The group is projecting a –$30.0 million shortfall, driven almost entirely by the Sheriff’s Office, which reported: 

·        –$24.6 million in expenditures above budget, including higher salary, benefit, medical, and mental health contract costs (some tied to prior-year hospital invoices)

·        –$6.2 million in lower-than-expected revenue

The combined –$30.8 million variance from the Sheriff’s Office accounts for the entirety of the projected General Fund deficit.

As part of today’s action, the Board directed the Sheriff’s Office to work with the Executive Office to prepare a corrective plan to bring spending back within budget.