The San Diego County Board of Supervisors today approved a $9.16 billion balanced budget that protects library hours, park access, behavioral health, public safety, homelessness response, food assistance, veterans services, fire and medical services, roads, infrastructure, and other core County services.  The Board used great fiscal discipline to build this year’s budget because the worst of the Trump Administration’s cuts are yet to come. 

“This balanced budget invests in what San Diegans actually need — healthcare, food assistance, mental health care, fire protection, libraries, parks, roads, and help getting people off the streets. We cut waste, protected core services, and prepared for the damage coming from Washington. While Trump chooses tax breaks for billionaires paid for by cuts to healthcare and food assistance, San Diego County is choosing real services for real people.”

Vice Chair Monica Montgomery Steppe said the budget reflects disciplined work by the County to protect residents while preparing for uncertainty ahead.

“This budget reflects the difficult work of protecting the services people rely on while preparing for the challenges ahead,” said Board Vice Chair Monica Montgomery Steppe. “We know families are already feeling the impact of rising costs and growing uncertainty, and we know federal decisions could put additional pressure on communities across San Diego County. Our focus is staying disciplined, protecting essential services, and making sure people continue to have access to the support they need.”

The budget absorbs $68.4 million in first-year impacts from Trump’s H.R. 1, including $7.9 million for CalFresh staffing and workload, $15.8 million for CalFresh administrative cost shifts, and $44.7 million set aside for mid-year implementation costs and emerging federal impacts not yet fully quantified.

Nearly 400,000 San Diego County residents currently receive CalFresh, and County analysis found H.R. 1 could affect more than a quarter of them. With major Medicaid changes set to roll out next year, County officials estimate H.R. 1 exposure in FY 2027–28 could range from $44.7 million to more than $241.1 million, depending on future federal and state implementation decisions.

Balancing the budget required a broad fiscal strategy, including limited and responsible one-time use of Unlocked Reserves, phasing out duplicative communications systems to save up to $7 million annually, strengthening lease and fleet oversight, centralizing administrative functions, and maximizing outside revenue. But one-time tools cannot absorb permanent federal cost shifts year after year.

The adopted budget included many actions to cut costs, reduce waste, and protect services, including:

Putting excess reserves to work — proposed by Lawson-Remer and Montgomery Steppe on Aug. 26, 2025; adopted Sept. 9, 2025. Lawson-Remer and Montgomery Steppe proposed modernizing the County’s reserve policy to align with Government Finance Officers Association best practices, keep required emergency reserves intact, and identify approximately $381 million in Unlocked Reserves available for responsible, one-time use. The adopted policy limits spending to one-time needs tied to federal or state cuts or a recognized recession, with no more than 25% of Unlocked Reserves available in a single fiscal year. 

Modernizing outdated phones and communications systems — proposed Jan. 28, 2026. Lawson-Remer and Montgomery Steppe proposed phasing out duplicative desk phones, unused devices, analog lines, and fax hardware while standardizing modern communications tools. County staff estimated the action could save taxpayers $1.5 million to $7 million annually without reducing public access to services. 

Reducing unnecessary lease and office costs — proposed March 3, 2026. Lawson-Remer and Montgomery Steppe proposed stronger oversight before the County enters new long-term leases, part of a broader effort to better use County-owned space and avoid unnecessary real estate costs. The County currently spends about $59 million annually across more than 70 active leases. Similar consolidation work allowed the County to house 800 employees without building another office facility, avoiding an estimated $150 million in capital costs. 

Right-sizing the County vehicle fleet — proposed March 24, 2026. Lawson-Remer and Montgomery Steppe proposed GPS-based utilization tracking, stronger vehicle-sharing and pooling, and turn-in standards for underused light-duty vehicles. County staff identified 444 underutilized vehicles in FY 2024–25, including an estimated 104 vehicles that may be reducible from the fleet, creating roughly $5 million to $5.3 million in avoided replacement and maintenance costs over five years. 

Bringing in new reimbursement for homeless services — scheduled for Board consideration on May 19th. Lawson-Remer and Montgomery Steppe are advancing a proposal to expand the County’s CalAIM homeless services pilot and allow the County to seek Medi-Cal reimbursement for housing navigation, case management, and tenancy support services already being provided. County projections estimate a $3.5 million state grant during ramp-up and up to $5.6 million in ongoing annual Medi-Cal revenue beginning in 2027, potentially offsetting up to 78% of Regional Homeless Services costs depending on final service design and population mix. 

The recommended budget also reflects extensive work by County staff, led by Chief Administrative Officer Ebony Shelton, to identify operational efficiencies, reduce duplication, maximize outside revenue, and keep services moving during a difficult budget year.

• Centralizing shared administrative functions. The County is bringing Administration, Communications, Finance Directors, Human Resources personnel, and related support functions under the Finance and General Government Group, rather than siloing those roles within individual departments and business groups. This change is designed to better use flexible staffing capacity, reduce duplication, strengthen coordination, and allow the County to shift administrative support where it is needed most. 
• Maximizing state and federal revenue. County staff worked to bring in more outside revenue for services already being provided, reducing pressure on the County’s General Fund. The largest program revenue increase comes from $129 million in intergovernmental revenue growth, primarily in Behavioral Health Services, helping sustain mental health and substance use treatment while limiting pressure on local taxpayer dollars.