COUNTY — As the county stares down the barrel of a $138 million budget deficit, the Board of Supervisors battled Wednesday over whether to delay approving its budget until October.
Supervisor Monica Montgomery Steppe brought the item forward, but it failed on a 2-1 vote, with Supervisor Joel Anderson opposed. Steppe and Supervisor Terra Lawson-Remer said one of the reasons was due to the lack of representation in District 1, the seat formerly held by Nora Vargas, who resigned earlier this year.
Supervisor Jim Desmond was absent as he’s in Washington, D.C. meeting with federal officials regarding several local issues such as the sewage crisis at the border.
The county’s policy, meanwhile, is to have an approved budget by June 30, which also aligns with the state approving its budget. However, the law allows for a recommended budget and temporary spending authorization by June 30 of any given year, public budget hearings announced by Sept. 8, and the final budget adopted on or before Oct. 2, which is what Montgomery Steppe and Lawson-Remer requested.
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Also, Montgomery Steppe said uncertainty in federal and state funding were also reasons she brought the item forward.
The county approved an $8.53 billion budget for Fiscal Year 2024-25, which saw an increase of 4.5% increase from the previous year, according to the county.
“I did hear a little bit about 2023, and that budget and I totally understand that,” she added, “but the primary reason here is we have no idea what’s coming to us. We really just don’t know from the federal and state budget outlooks. That has never been the case in my lifetime.”
Anderson alluded to the county’s ability to amend and add, or eliminate, parts of the budget at any time. He also said there has been many times the state’s budget has been uncertain and the county has always passed its budget and adjusted when needed.
Anderson, who spent 12 years in the state Assembly, said 30% of the budget comes from the state. He said during the 12 years he was there, there was great uncertainty to the county regarding the budget.
“I’m pleased that this board will be unable to kick the can down the road and will pass a balanced budget, on time, per county code,” Anderson said. “My door continues to be open to compromise and solutions.”
Opponents, though, slammed the measure as political and partisan as the District 1 seat is now down to two candidates — Chula Vista Mayor John McCann and Imperial Beach Mayor Palomar Aguirre. Those two advanced to the July 1 general election after last week’s primary.
Aguirre, the Democrat, is favored to win the seat and return the balance of power to her party.
Opponents also noted how the county was able to pass its budget in 2023 after disgraced former Supervisor Nathan Fletcher resigned amid a sexual harassment case against a former Metropolitan Transit System employee. The scandal rocked the county for weeks as Fletcher didn’t formally resign until May, about six weeks after the scandal broke in March 2023.
Other critics have also railed against the county for hiring 2,500 employees over the past several years and creating at least four new departments as primary drivers for the budget deficit. According to GovSalaries, the average salary for a county employee in 2023 was $115,658 and the median salary was $106,748. Using those salaries, the county took on between $266 million to $289 million in salary and benefits for those employees.
“Did we alter the budget process for the citizens of District 4?” San Diego Young Republican Vice President Zack Gianno asked in a social media post. “No, we didn’t. This alone invalidates any claim of ‘special circumstances’ because we had a ‘special circumstance’ where a budget was still passed in 2023. There has always been uncertainty when it comes to outside dollars.”
Montgomery Steppe, though, argued the uncertainty regarding federal policies, court cases challenging federal funding, and the California state budget outlook, which also depends heavily on federal funds, is reason enough to delay the budget approval.
She said the budget is the most important decision for the board and modifying the timeline would allow D1 residents a voice through their new elected official. Montgomery Steppe said the potential for budget cuts will disproportionately affect D1 residents who rely on county services.
Other discussions regarding the impacts of delaying the budget included impacts to the county’s credit rating and delays in funding county services for those already in motion. New capital projects, though, could be delayed until the formal budget is adopted. Staff, though, said there would be no impacts on the credit rating or delays in funding services.
County staff said the May revised budget from Gov. Gavin Newsom would provide more clarity, but the state budget itself may be a placeholder pending clarity on federal actions.
Chief Administrator Ebony Shelton, the former chief financial officer of the county, assured the board the recommended budget, which comes to the board on May 1, will be balanced. She said the county will deploy various strategies including streamlining efficiencies and reductions to discretionary services will be engaged.
Staff said if the budget wasn't passed by June 30, Shelton’s balanced recommended budget would be operationalized, meaning the $138 million projected deficit would not continue to grow as it would be addressed by her proposal.
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